Are people switching back to hotels from Airbnb? Today, we hear from the owners.
An internet user asked, “People who own Airbnb, has revenue gone down? I keep reading stories of how people are fed up with the fees so they are choosing hotels and with increased interest rates and layoffs, people may have reduced disposable income. Has your revenue changed at all?”.
Here are the top responses.
Airbnb As A Company Is Doing Really Well
“I think Airbnb as a company is doing really well.
We have two units and it’s almost the same as last year in Maui. It’s still a great deal here compared to hotels.”
Down By 30-40%
“Down about 30-40% from last year.”
So Down That They’re Now Transformed Into Rentals
“I had 6 Airbnb and made them all long-term rentals. Best decision ever.”
Very Down In Phoenix
“Very down in Phoenix. Probably about 10-20% in my full-size listings and 30%+ in ADUs (which is the most saturated segment).
The changes to the cost side (for a brand new Airbnb) are way worse than the revenue decline. Property pricing and interest rates make the monthly costs several hundred per cent higher than 1+ year ago so that’s a way bigger factor in the profitability formula.
What’s crazy is that people are still posting non-stop asking how to *start* a *new* Airbnb… I compared this to the Eternal September phase of Uber and wrote a post about this.”
It’s Fully Booked
“I don’t charge cleaning fees and my price-quality ratio is better than hotels. I’m fully booked.”
It Depends
“A buddy on the NJ shore is down a lot this year, lots of open weeks this summer vs last summer was fully booked. Know someone else with a house in Hilton Head Island and they’re fully booked through New Year’s and charging 15%-25% more than 2022.”
Business Is Slow Around Vermont
“Yup, business is down. Anecdotally, seems to be slow all over the Vermont town where the house is.”
This Year Has Been Unnaturally Slow
“We run two little Airbnb. This year has been unnaturally slow.
As far as I know, all pricing and fees have remained the same as before.
We’re not too sure why it’s so slow but are guessing that people are finally fully comfortable traveling again after covid. Seems like small-town getaways like ours were more popular when the pandemic had a lot of world travel messed up.”
Per Listing Revenue Is Down
“Yes sir. Supply is still outpacing demand. Per the listing, revenue is down even though overall STR revenue is still growing.”
My Revenue Is Up
“My revenue is up as this is our second year and we had bookings in June this year and didn’t start until July last year. That said we are full all summer and filling up at times this fall and next summer.
We also don’t charge a fortune to rent our beach house so it might be that we are underpriced and therefore renting out a lot.”
It’s Down Pretty Considerably
“My revenue is down pretty considerably compared to last year. I think it has mostly to do with my market being over-saturated and people feeling more comfortable staying in hotels.”
It Depends On The Level Of Market Over-Saturation
“No. It depends on how over-saturated the market is and what the competition is. My Airbnb is a unique 5 bed in a coastal community that doesn’t have many hotels, so everyone who visits pretty much Airbnb and there’s not as much competition at 5 bedrooms.
I know people with 2 or 3 bedrooms and their revenue has gone down from over-saturation of the market. I also know people who have them where I live and theirs has gone down because there’s a million hotels and alternatives.”
Maybe 15% Down
“Yes, maybe 15% down. I attribute it to over-saturation in my area – but I’m not worried, my mortgage is $180 a month so I can weather the storm for a long long time. Still very profitable.”
Gone Down Slightly
“My revenue has gone down slightly but I think the economic downturn is probably hitting the entire industry.”
35% Decline YoY
“I have a property in Houston and it’s down significantly (35% decline YoY).”
Not Much
“Down a little but not much. In our areas, we are tracking fewer units in Airbnb from last summer.”
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