Landlording & Rental Properties

10 Things You Didn’t Know About Airbnb

Expertise: Landlording & Rental Properties
11 Articles Written
Couple walking in front door of vacation rental with suitcases

Airbnb is one of the most successful short-term rental businesses in the world today. Since its formation in 2008, it has experienced massive growth, starting out with just a few friends renting extra space in their home to an international multibillion-dollar corporation.

Airbnb and other companies like it have completely disrupted the hotel and recreation industry. Despite taking a hit due to the coronavirus pandemic, Airbnb has been one of the first to bounce back and even announced its intention to become a publicly-traded company in 2020. Per its prospectus released November 16

“In early 2020, as COVID-19 disrupted travel across the world, Airbnb’s business declined significantly,” the company wrote. “But within two months, our business model started to rebound even with limited international travel, demonstrating its resilience. People wanted to get out of their homes and yearned to travel, but they did not want to go far or to be in crowded hotel lobbies. Domestic travel quickly rebounded on Airbnb around the world as millions of guests took trips closer to home. Stays of longer than a few days started increasing as work-from-home became work-from-any-home on Airbnb. We believe that the lines between travel and living are blurring, and the global pandemic has accelerated the ability to live anywhere. Our platform has proven adaptable to serve these new ways of traveling.”

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The platform is simultaneously paving new ways for people to make extra money relatively easily—much like many of the other tech companies creating opportunities within the “gig economy,” such as Uber, Postmates, Upwork, and more.

Below are several interesting tidbits about Airbnb that you might not have known before.

Related: Calculating Your Airbnb Return: How to Estimate Your Rent

nicely decorated bedroom with big windows and open curtains

10 Fun Facts About Airbnb

1) Valuation

2) Host Protection Insurance

  • Airbnb provides each host a $1 million liability insurance policy for their rental business.
  • This policy applies for each incident that occurs in their property. If they have multiple properties, they are covered just as well.

3) Total Listings

4) Affordability

  • On average, Airbnb rentals are 21% to 49% cheaper than hotel rooms.
  • More and more people every year are using Airbnb and other short-term rental platforms for business travel, vacation, etc.

5) Booking Trends

  • The majority of Airbnb bookings are for 2-4 people per stay.
  • This means that making your property compatible for multiple guests will guarantee you make more money every month.

vacation

6) Airbnb Arbitrage

  • With Airbnb arbitrage, you don't even need to own a home to start an Airbnb business. This is a business strategy where a wannabe host rents a property from a landlord and then lists it on the platform.
  • Hosts can make $1,000+ per month of positive cash flow for each property when acquired with rental arbitrage.

Related: Airbnb Arbitrage: 3 Tips for Persuading Rental Owners to Work With You

7) Airbnb Experiences

  • Airbnb doesn’t just offer homes and rooms for rent. They also offer Airbnb Experiences such as tours, social events, online experiences, and other adventures.

8) Popularity

  • The most popular locations for Airbnb in 2019 were in China, Mexico, and New Zealand.
  • Each year Airbnb acquires more and more of the international market share.
  • This trend is not only serving guests but also allowing everyday people to create successful businesses out of their homes.

Related: Vacation Rentals Are Popular But Are They Profitable? (Hint: Yes! Very.)

9) Host Demographics

10) Guest Demographics

  • The majority of bookings on Airbnb are by people who are between the ages of 22 and 37.
  • This younger generation of users is paving the way for new and alternative technologies that provide age-old services.
  • This likely means that this trend will continue into the future, thereby securing the financial success of those who choose to get into hosting.

Questions? Comments?

Join the discussion below.

Jason has been in the real estate business since 2015 with a primary focus on commercial investments. Over the last 10 years he has also started and operated businesses in digital marketing and eCo...
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    Morgan J Sullivan
    Replied about 2 months ago
    Love the info on rental/Airbnb arbitrage. Is now a bad time to get into it, though? You know, that whole COVID thing.
    Wendi Roudybush
    Replied about 2 months ago
    Morgan, I have 2 units that I rent out on both Airbnb and VRBO. I had NO guests whatsoever in April this year, and was getting really nervous about it. But it's taken off since then - no one wants to stay in hotels these days, and my guests love having their own kitchen and fenced yard for dogs. Expenses are high since you have to cover all utilities, arrange for cleaning, and replace anything that's damaged. It's more work than many people realize to correspond with the guests, clean when the paid cleaners are unavailable, make sure all the maintenance is completed and keep the listings up to date. But I've met some great people, and am making probably twice what I could with full time tenants. My property is paid for, though, and I would hesitate to rent or buy something just for turning it into a vacation rental. But if you already own property that would be desirable for short term rentals, it can certainly be well worth the effort!
    Dean Letfus Specialist from Memphis, TN
    Replied about 2 months ago
    Just a note for New Zealand, arbitrage will result in you being prosecuted and convicted, so don't do it!!
    Bert Declercq Homeowner from Belgium
    Replied about 2 months ago
    Interesting facts! Thanks for the article!
    Nicolas Biangel Specialist from covington, ga
    Replied about 2 months ago
    Great article! thank you!
    Connor Ong from Phoenix, AZ
    Replied about 2 months ago
    I’m looking to buy my first place in AZ, and the direction I’m most likely going to go with is house hacking but utilizing AirBnb. I’ve been looking for places That are in prime locations for the “snowbirds” from the east coast that come and stay for months at a time in the winter or come for the months of Feb-April for baseball Spring Training. This is super helpful and informative! Thank you!
    Joe Prillaman Rental Property Investor from Carolina Beach, NC
    Replied about 2 months ago
    Good stuff! Thanks for posting. We also saw a huge increase in travel to Carolina Beach after the Covid-19 shutdown.
    Katie Rogers from Santa Barbara, California
    Replied about 1 month ago
    We only used VRBO, but over the past few years VRBO has inserted itself too much in the owner's business instead of being merely a listing site. We keep them at arms length. We won't go near any of the other listing sites including AirBnB. We still managed to stay fully booked.