AirBNB owners are increasingly reporting problems with fewer people interested in hiring their properties – is the problem spreading to the UK?
- The Dream: Joan and Mark Robertson, from chilly Minnesota, bought a second home in sunny Kissimmee, Florida, near Walt Disney World. They spruced it up, listed it on Airbnb, and expected to make some money by renting it out to fellow winter-escapees or Disney-goers.
- Reality Check: Fast-forward ten months, and the Robertsons haven’t had the success they hoped for. In fact, they’ve got no bookings for August, which is supposed to be a busy month.
- A Bigger Picture: The Robertsons aren’t an isolated case. Since its creation in 2008, Airbnb has shifted the traditional hotel game. A lot of folks started buying homes just to rent them out on Airbnb – some to cover the cost of a mortgage, others as a full-fledged business.
- Dropping Profits: Recently, however, there’s been a decline in profits. For instance, in areas around Orlando, the average money earned for each available room (a common industry metric) has dipped by 6.4% in the first half of the year. Some places, like near Joshua Tree National Park or the Great Smoky Mountains, have seen even bigger declines, up to 17%.
- Airbnbust: This unexpected downturn in the short-term rental market is now being cheekily called the “Airbnbust”. People are puzzled and a bit anxious, with some taking to the internet to ask, “What’s going on with Airbnb?”
- Airbnb as a Company: Now, while individual hosts are feeling the squeeze, Airbnb as a company is still doing well. Their bookings and share price have gone up significantly this year. However, this doesn’t mean every host is benefiting equally.
- The Takeaway: The current trend suggests that not every property will thrive on platforms like Airbnb. Success will likely depend on offering the right mix of location, features, and pricing.
In simple terms, think of the Airbnb market like an ice cream shop. While the shop (Airbnb as a company) might be making plenty of sales, not every flavor (property) will be a hit. Some might get left in the freezer while others fly off the shelves!