AirbnBust? Or AirbNormal?

[Trevor Schmitt]

Did you know that short-term rentals only account for 15% of the stays for travelers? Hotels still account for 85% of all total stays.

After all of the buzz the last couple of years, one would have thought that STRs took over half of the market share, and according to the headlines that is about to come crashing down.

Jamie Lane, Chief Economist of AirDNA recently spoke to this on a podcast. He dispelled the notion of an Airbnb bust like some headlines are showing by using actual data. And lots of data. 10 million listings worth of data per day to be exact.

What is actually happening? A regression the means more or less. There was a boom towards the later part and after the pandemic as far as number of listings, average daily rate, and occupancy rate. Overall, the rise of average daily rate and occupancy rate has slowed down, while the number of listings has continued to rise.

All in all, the STR market is settling into the trajectory it was on pre-covid, not falling off the face of the earth. According to Jamie and his team, the STR market is healthy, strong, and sustainable at this point.

As an owner of STRs and advisor to clients who are also owners, this was a refreshing listen on BP.