Things You Didn’t Know About Airbnb

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.

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

1) Valuation

* As of 2019, Airbnb’s private valuation was $35 billion. 

* This puts Airbnb’s value at a higher number than many well-known brands in the hotel industry that have been around much longer.

* However, it’s value decreased post-COVID to $18B.

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

* Airbnb currently has more than 7 million listings all across the world.

* On any given day, Airbnb provides lodging services for 2 million guests.

* The United States controls the majority of this market share.

* Airbnb listings are available in over 100,000 cities spanning 220 countries.

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.

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.

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.

9) Host Demographics

* More and more people over the age of 55 are taking up Airbnb hosting as a source of income.

* This may be a result of the fact that most homeowners are older, giving them a lower barrier to entry.

* Creating a reliable source of passive income could allow you to retire early and get more out of life while you’re young.

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.