Last Updated: August 18, 2021
Airbnb is growing fast!
It redefined the meaning of the word:
We here at SpendMeNot did our little research on Airbnb.
Airbnb revenue stats will blow your mind in 2021.
Let’s see some stats first:
Incredible Airbnb Revenue Statistics (Editor’s Choice):
- The company’s revenue fell 30% in 2020.
- Hotels are estimated to lose $450 million per year because of Airbnb.
- Airbnb is currently valued at $127 billion.
- Airbnb’s projected revenue is $7.1 billion by the end of 2022.
- The average cost of an Airbnb rental is $110.
- Barcelona’s highest Airbnb earner made €2.3 million in an year.
- Airbnb is worth more than €320 million 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 dropped by 30% in 2020.
Following years of growth, Airbnb’s revenue plunged in 2020. The COVID-19 pandemic affected the industry, causing travel disruption across the world.
So, how much money did Airbnb make in 2020?
Standing at $3.38 billion, Airbnb revenue in 2020 was a drastic fall from the $4.8 billion generated in 2019.
Yet, as restrictions ease and travel rebounds, the company’s quarterly updates indicate Airbnb revenue in 2021 will be back up.
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. The value of Airbnb reached $127 billion in 2021.
As of August 2021, the Airbnb value was $94.33 billion. And if that seems high, consider this:
In February, the company’s market cap stood at $127.07 billion! At the time, the Airbnb stock price rose to an all-time high of $216.84.
4. Airbnb’s projected revenue is $7.1 billion by the end of 2022.
This statistic indicates the Airbnb revenue growth that we expect to see over the coming year. According to analysts, by the end of 2021, the company would generate $5.6 billion.
5. The average cost of an Airbnb rental is $110.
(Source: AllTheRooms Analytics)
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 compare the average price of a single hotel room from the top 20 biggest hotel booking platforms to the average price of an Airbnb rental, the latter will be roughly $3 cheaper.
6. Barcelona’s highest Airbnb earner made €2.3million in a year.
One of the highest Airbnb earners is from Barcelona. He had an annual revenue of almost €2.3million, which he earned through renting out 63 properties via the rental property and house-sharing service.
7. Airbnb contributed more than €320 million to the Irish economy in 2019.
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 can draw in a greater number of tourists, and it seems that this is definitely the case when it comes to Ireland.
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.
If you thought it was impressive that Airbnb has such a massive impact on the Irish economy, you would 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. Yes, that’s billion!
9. It’s cheaper to book an Airbnb than a hotel room in some of the world’s most popular cities.
(Source: Travel Perk)
Is Airbnb cheaper than a 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?
10. There has been a 73% increase in bookings in the first half of 2021.
As travel restrictions ease, demand for Air bed and breakfast is back on the rise. For the six months ended June 30, 2021, Airbnb had 147.5 million Nights and Experiences Booked. This is a 73% increase from 85.1 million in the same period a year ago.
And, when booking numbers increase, so too does Airbnb income.
11. The average Airbnb host makes $924 per month.
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 average, Airbnb hosts earn $924 per month. Of course, profit will fluctuate depending on how much of the property yourent out, whethert 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. Derbyshire, UK has experienced the greatest increase in booking percentages.
In 2019, Airbnb’s top 10 destinations were big cities like Barcelona, Lisbon, London, Los Angeles, Madrid, New York City, Paris, Rome, Seoul and Toronto.
But after the pandemic hit, demand shifted towards smaller, lower-profile cities. These destinations have seen the largest year-over-year increases in searches for 2021 bookings:
- Derbyshire, UK
- Rodanthe, on the coast of North Carolina
- Forks, Washington
- the Muskoka Lakes, near Toronto
13. Airbnb makes most of its money through service fees on bookings.
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.
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.
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 visitors to NYC stay for 6.4 nights on average when using the 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 many hosts cano 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.
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?