Airbnb Revenue [17+ Amazing Stats You Need in 2020]

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Airbnb is growing fast!

It redefined the meaning of the word: 

Travel.

We here at SpendMeNot did our little research on Airbnb. 

The results:

Airbnb revenue stats will blow your mind in 2020. 

Let’s see some stats first: 

Incredible Airbnb Revenue Statistics (Editor’s Choice):

  • The company’s revenue grew by 40% in 2018.
  • Hotels are estimated to lose $450 million per year because of Airbnb.
  • Airbnb is currently valued at $38 billion.
  • Airbnb’s projected revenue is $8.5 billion by the end of 2020.
  • The average cost of an Airbnb rental is $160.47.
  • Barcelona’s highest Airbnb earner made €2.3million.
  • Airbnb is worth more than €700m to the Irish economy.
  • Airbnb has the greatest economic impact on the United States.

The company has turned the hospitality industry on its head. A few years ago, a lot of people would have never heard of Airbnb. Today, most people have booked accommodation using this platform! 

So, with that being said, read on to find out more about some fascinating stats about Airbnb profit, Airbnb earnings, and much more. 

Let’s dive right in.

Is Airbnb Profitable?

Let’s answer this important question by exploring each of our astonishing stats in greater depth.

1. Airbnb revenue grew by 40% in 2018.

(Source: WSJ and Reuters)

If you ever needed proof that Airbnb was a company doing well, you only need to look at this statistic! How much money did Airbnb make in 2018? That year, Airbnb revenue grew by a massive 40%. This statistic regarding Airbnb revenue 2018 shows how the company is making more money than ever before, and we are sure that the Airbnb revenue 2019 report will show even bigger growth when it comes out.

2. Hotels are estimated to lose $450 million per year because of Airbnb.

(Source: Revenue Hub)

While these Airbnb statistics on the massive Airbnb profits being made are great news for the company itself, it’s not the best news for the traditional pillars of the hospitality industry. As you can see, hotels across the world are losing huge sums of money because of Airbnb.

3. Airbnb is currently valued at $38 billion.

(Source: Host Sorter)

You may not be surprised to learn that the value of Airbnb is high when you consider the revenue the company is taking in. The most recent valuation occurred in April of 2019 and the Airbnb value was deemed to be worth nearly $40 billion. This statistic takes into account the recent Airbnb stock sale that took place.

4. Airbnb’s projected revenue is $8.5 billion by the end of 2020.

(Source: Host Sorter)

This statistic gives some indication of the Airbnb revenue growth that we expect to see over the coming year. By the end of next year, Airbnb will have accumulated a whopping $8.5 billion US dollars.

5. The average cost of an Airbnb rental is $160.47.

(Source: Much Needed)

One of the reasons Airbnb revenues are so impressive is the fact that the company offers affordable accommodation. This makes Airbnb more tempting than opting for hotels booked via online accommodation site services. In fact, statistics show that if you consider the average price of a single hotel room from the top 20 biggest hotel booking platforms with the average price of an Airbnb rental, the latter will be roughly three dollars cheaper on average.

6. Barcelona’s highest Airbnb earner made €2.3million.

(Source: Telegraph)

One of the highest Airbnb earners is from Barcelona. He had a revenue of almost €2.3million, which he earned through renting out 63 properties via the rental property and house-sharing service.

7. Airbnb is worth more than €700m to the Irish economy.

(Source: Irish Times)

There is no denying that Air B&B is making a massive impact around the world, and it is also having a positive impact on many countries’ economies. This is because cities with Airbnb experiences are able to draw in a greater number of tourists, and it seems that this is definitely the case when it comes to Ireland. 

This puts Ireland at the number 20 spot of Airbnb’s direct economic impact figures. Other countries that Airbnb has a massive impact on in terms of the economy are Croatia, Spain, and Portugal, as well as the United States, which we will discuss in the next statistic.

8. Airbnb has the greatest economic impact on the United States.

(Source: Irish Times)

If you thought it was impressive that Airbnb has such a massive impact on the Irish economy, you will definitely be amazed when you discover the impact it has across the pond. The list of direct economic impact figures is topped by the United States, with figures showing that Airbnb is worth more than a mind-blowing $33.8 billion to the US economy.

In total, Airbnb catered to spending of €86 billion to economies in 30 countries around the world.

9. It’s cheaper to book an Airbnb than a hotel room in some of the world’s most popular cities. 

(Source: Travel Park)

Is Airbnb cheaper than hotel? There are a number of different cities around the world where research shows it is cheaper to book an Airbnb than it would be to pay for a hotel. This includes Boston, New York, Toronto, Paris, London, Sydney, Vienna, Madrid, Amsterdam, and Berlin. Not a bad list, is it?

Next:

10. There has been a 45% increase in bookings in the US. 

(Source: iProperty Management)

When you consider how vital Airbnb is to the economy in the United States, and you combine that with this statistic regarding the popularity of Air bed and breakfast, it is not difficult to see how Airbnb is a massive force in the industry at the moment. It is only getting more and more popular, with booking numbers increasing all of the time. And, when booking numbers increase, so too does Airbnb income.

11. The average Airbnb host makes $20,619 for a full two-bedroom apartment or house.

(Source: Smart Asset)

Can you make good money from Airbnb? The Airbnb annual revenue does not only make great reading for the company itself but also those who use Airbnb for luxury retreats and posting commercial Airbnb listings. This is because hosts are expected to be able to make a considerable amount of profit on a yearly basis. 

It has been estimated that the average profit on a two-bedroom house or apartment in major cities is close to $21,000. Of course, profit will fluctuate depending on how much of the property you are renting out, whether or not it is available all year round, and the location. Nevertheless, this gives you a great insight into the huge profit potential for Airbnb hosts.

12. Gangneung, South Korea, has experienced the greatest increase in booking percentages.

(Source: iProperty Management)

Airbnb has released statistics about the cities expected to be the most popular over the coming year based on the increase in booking percentages. At the top of the list, we have Gangeung, South Korea, which has experienced a monumental increase in bookings of 2175%. 

Just let that sink in for a minute…

After this, we have Bournemouth, in the United Kingdom, with bookings up by 353%. What’s more, there has been a 284% increase in bookings in Edmonton, Canada, followed by a 256% increase in Airbnb bookings in Indianapolis, Indiana. 

The fifth most popular is Da Nang, in Vietnam, which has experienced a 255% increase in bookings. This is then followed by Columbus, Ohio, with Gazimagusa, Cyprus, in seventh place. Spain’s Bilbao is the eighth most popular, and then we have Hanoi in Vietnam, and finally, in tenth place, Matinhos, which is in Brazil. This can give you some insight into the expected increase in Airbnb profits in these places over the coming year.

13. Airbnb makes most of its money through service fees on bookings.

(Source: Investopedia)

How does Airbnb generate revenue? The primary source of revenue for Airbnb comes from the service fees they charge on all bookings. Guests will need to pay a non-refundable service fee on all bookings. This is between 6 and 12% depending on the size of the reservation. The more expensive the reservation, the lower the service fee is going to be for guests. This should give you a better understanding of the Airbnb revenue model.

14. Airbnb guests stay in their accommodation longer in the UK and spend more money.

(Source: Airbnb)

A study by Airbnb has revealed that guests using Airbnb listings and Airbnb accommodation tend to stay on average 4.6 nights in Edinburgh and London. This is compared to the average for typical visitors to the UK, which is just 3.1 nights. This shows how hosts can make more money using Airbnb in order to attract visitors. 

In the same study, Airbnb also revealed that visitors tend to spend twice as much money over the course of their trip if they stay in an Airbnb in Edinburgh or London. The average visitor will usually spend $713 per trip. However, an Airbnb visitor will spend as much as $1,496 on average.

15. Airbnb visitors to New York stay 6.4 nights on average.

(Source: Airbnb)

You can also expect to secure longer bookings and so make more money by advertising your property via Airbnb if you have accommodation available in New York. This is because Airbnb have revealed that visitors to NYC stay for 6.4 nights on average when using their service. 

Now, when you contrast this with the typical visitor, you see a massive difference. This is because the average visitor will only stay for 3.9 nights. Airbnb guests also tend to spend more money in NYC, too. The average guest will spend $690 at businesses in New York City. However, Airbnb guests will spend a considerable amount more, with the average trip spend coming in at $880, stats about Airbnb revenue reveal. This shows Airbnb is also increasing revenue for local businesses in the area.

16. US hosts can increase their profit margins thanks to a new tax deduction.

(Source: iProperty Management)

Any business owner wants to make sure they enhance their profits as much as possible, and this is certainly no different when it comes to Airbnb. Luckily, if you are an American host, you will be able to do this because of a tax deduction that came into place in 2017. 

This means that hosts of vacation rentals were given a pass-through deduction, which means a lot of hosts are able to deduct up to 20% of their short-term rental income from their income taxes. Of course, if you are a short-term host, it is imperative to make certain that you are eligible for this before you go and remove this from your tax liabilities.

17. 88% of reservations on Airbnb are for groups of two to four people.

(Source: Much Needed)

Finally, a huge number of reservations on Airbnb are made for couples or groups of three or four. This accounts for nearly nine out of ten bookings on the platform. This shows how there is great profit potential for any host who is able to offer accommodation options for such groups of people. Furthermore, 60% of all of the bookings made on the platform are for entire apartments and houses.

Wrap Up

Airbnb is making it rain. 

The most recent stats and facts about Airbnb revenue statistics are certainly impressive, to say the least! The business really is making moves forward in the world of online accommodation bookings. 

When was the last time you booked an Airbnb? 

#Wanderlust

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