Before embarking on your Airbnb journey, it’s understandable that you want assurances that…
- The short-term rental property game is a lucrative opportunity
- Airbnb represents the best opening into that opportunity for you
- Your efforts and investments will translate into riches and rewards to your satisfaction
Here are some facts and figures that should validate the Airbnb opportunity and what you stand to personally gain…
An Idea Unlikely to Disappear Any Time Soon
Since its inception in 2007, more than 60 million travelers have turned to Airbnb when looking for a place to stay.
Half a million people currently use Airbnb across 65,000 cities to put a roof over their heads each and every night.
More than 650,000 people across 191 countries have recognized this opportunity to monetize their extra space and showcase it to an audience of millions by becoming an Airbnb host.
Currently, there are more than 3 million listings on Airbnb. Airbnb accommodations account for 9% of total room inventory across all major U.S. cities. U.S. Airbnb hosts alone were responsible for generating $2.4 billion in just a single year, putting Airbnb’s annualized revenue at about half that of the entire Hyatt Hotels group.
Throughout the summer of 2015, 17 million people used Airbnb to book a place to stay. And more guests traveled on Airbnb over that summer than the entire populations of Greece, Sweden or Switzerland.
20% of the 600,000 people who went to Brazil for the 2014 World Cup stayed in an Airbnb. 2.2 million tourists used Airbnb in 2015 to stay in the UK. And throughout Thanksgiving 2015, one quarter of a million Americans chose to stay in an Airbnb too.
But is it still growing? Absolutely!
The total number of Airbnb guests have grown more than 600x in just five years.
From 2013 to today, Airbnb has gone from 950,000 users to over 4 million in the U.S. alone.
And within the U.S., the number of Airbnb units almost doubled in Los Angeles, New York, San Francisco and Washington throughout 2015.
Summer travel on Airbnb has also grown 353x in just five years. And there has also been a 259% annual growth rate of people staying in Airbnb properties whilst on work trips throughout 2015.
Gain Additional Income
You’re probably thinking… that’s great for Airbnb, but what’s in it for me? Well, if you’re like the majority of other Airbnb hosts, then the primary motivation for listing your home on Airbnb is to gain an additional and lucrative source of income.
Over the past seven years, in the U.S. alone, Airbnb hosts have earned a cumulative $3.2 billion, of which the average Airbnb host individually makes $7,530 each year. On average, that’s enough to offset…
- More than one year’s worth of groceries
- 78% of mortgage repayments
- 10 months of transportation costs (including gas, vehicle expenses and insurance)
- One year’s worth of a typical worker’s contribution to family employer-provided health insurance (with $2,700 leftover!)
And how does this money meaningfully impact the day-to-day lives of regular people all around the world?
- For the average American family making $50,000 per year, that extra incomeis the equivalent of a 14% salary raise
- 53% of Airbnb hosts say that the money they make from hosting has helped them stay in their home
- 48% of an Airbnb host’s incomeis used to pay for regular household expenses like rent and groceries
- 69% of Airbnb hosts in New Orleans use the money they earn on Airbnb to pay their rent or mortgage
How Much Do you Stand to Make?
We’ve got an entire section dedicated to pricing your place which will provide you with detailed insights into how much you personally stand to make by renting out your home on Airbnb.
But if Airbnb is something you’re considering with any degree of seriousness, it’ll be worthwhile doing some back-of-the-envelope calculations of your probable costs, likely revenue and potential profitability.
Click here to calculate your profitability with Learn Airbnb’s Financial Profit Calculator.
When it comes to COSTS, think about the “hosting essentials” you’ll need to stock and furnish your place with. Some of these will be one-off costs associated with starting up your Airbnb such as furniture, bed linen and dinnerware. Others will be recurring costs such as rent, utilities and laundry.
When it comes to REVENUE, don’t just think about how much you’ll be charging for each night, but also how many nights you anticipate your place will likely be occupied (your “occupancy rate”). Will you have a weekend vs. weekday rate? Will you offer a weekly or monthly discount? Do you plan on charging a cleaning fee? All of these things will influence how much you stand to make and may also vary at different times of the year or by season too.
Beyond the allure of making money on Airbnb, many hosts simply enjoy the opportunity of sharing their home with interesting people from all walks of life. Airbnb provides the opportunity for hosts to form connections with colorful personalities they would otherwise not have met.
Unlike hotel-stayers, Airbnb guests are not looking for “cookie cutter” accommodation options. Many guests are looking for more than just a roof over their heads – they’re also looking for experiences and an opening into local cultures and communities too.
In fact, 85% of Airbnb guests claim that they choose to stay in an Airbnb so they can live like a local…
79% of Airbnb guests specifically want to explore a particular neighborhood (which are often outside the areas that hotels are commonly concentrated within). And as a side benefit, Airbnb guests choose to stay 2.1x longer in their destinations than non-Airbnb travelers.
All of this adds up to an opportunity for not only turning a decent profit, but also having some fun and meeting interesting people along the way too.