Most people sleeping over at their destination would need a “home away from home.” Of course, there have always been companies that take care of that. But Airbnb brought in a new and interesting twist into the market.
The main idea is a house-sharing service that offers an opportunity for travelers to get cheaper accommodation wherever they travel to.
It’s also an opportunity for homeowners to make more money from their homes by sharing with travelers. 10 years later, Airbnb has become a popular company with many travelers now using it for accommodation across the world.
Airbnb Company Facts
- Airbnb was founded in 2008 by Brian Chesky, Joe Gebbia, and Nate Blecharczyk.
- Airbnb has 31 offices across the world.
- Airbnb has hosted 400 million guests since its launch.
Airbnb Fun Facts
- The average San Francisco Airbnb guest spends 5.5 days and spends up to $1,045
- Tokyo, Paris, and New York City are the most popular cities for Airbnb booking experiences
- 15.4% of issues that Airbnb hosts face are scams (e.g., host falsifies damages or demands extra money).
- Since 2017, there’s been a 120% increase in the number of senior hosts over 60
- The Airbnb’s average per night price for reservations is $80
- The fastest-growing Airbnb hosts are seniors.
- Senior women over 60 years are rated as the best hosts on Airbnb.
- About 100,000+ guests arrivals on Airbnb happens in earthouses.
- The “air” in Airbnb came as a result of Brian Chesky and his roommates renting an air mattress on the living room floor.
Airbnb Demographics Statistics
1. Airbnb offers listings in over 191 countries
The reach of Airbnb is huge. When the company was founded in 2008, the mission is to create a beautiful world where people can belong through healthy travel that’s rewarding, local, authentic, inclusive, sustainable, and diverse.
People love Airbnb because their rates are fairly cheap in U.S., U.K., and even in Athens where a traveler can get a space for $14 per night. Through technology, millions of people globally are empowered to monetize their spaces and talents to become hospitality entrepreneurs.
The idea was well received. And today, Airbnb operates in more than 81,000 cities and 191 countries of the world. It provides more than 5 million spaces to stay and offers unprecedented access to local interests through 15,000+ handcrafted activities run by hosts.
2. Airbnb has about 150 million users
Fast forward today and more than 260 million guests have booked and stayed in Airbnb properties across the world. A recent statistics show that Airbnb has approximately 150 million users covering more than 65,000 cities. Guests can also book 1.9 million listings at any given time. It started small but it’s grown significantly since then.
The value of the company is always on the increase. With a current valuation of $32 and expected to reach $38 this year in the Q1 2019, the revenue is on the rise too. Latest predictions from market leaders indicate that by 2020, Airbnb’s profit could be around 8.5 billion.
3. Airbnb has more than 5 million listings worldwide
The current fact is that Airbnb has 5+ million listings across the world. The company was barely breaking even in 2009; 1 year after it’s launch in 2008. See how far it’s gone with 31 offices globally.
Back in 2016, here are the U.S. cities with the most commercial Airbnb listings.
But there’s more. The listings started out small but today, there are 3,000 castles and 2,200 treehouses to delight guests. If you have always wanted to sleep in a castle or treehouse, Airbnb has the right listings for you.
4. 49% of Airbnb users in 2016 used it as an alternative to hotels
In a study by Morgan Stanley, they found that 49% of users of the home-sharing service used it as an alternative to a traditional hotel. This is up from 41% in 2015. Others say they’ve used Airbnb to replace bed and breakfasts, staying with friends or family, extended stay hotels, vacation rental sites, and corporate apartments.
Another statistics found was that 19% of leisure travelers in 2016 had used Airbnb in the past 12 months while 18% of business travelers have done the same. It was expected that this would rise to 25% of leisure travelers in 2017 and 23% of business travelers. This is an upward trend as the company continues to gain popularity among hosts and travelers.
However, the company still has to do better with business travelers. These are the people who have deep pockets to spend on accommodation. It’s also estimated that 70% of room nights in the U.S. lodging industry are generated by business travel. In 2016, Morgan Stanley believed Airbnb occupied about 4% of traditional hotel demand. But this value is expected to rise to 6% in 2018.
5. 93% of Airbnb users were satisfied with the service
From the same Morgan Stanley study, they found that 93% of travelers who used Airbnb in 2016 were satisfied with the service they got. This is up from 90% in 2015.
With a home-sharing service, user satisfaction will determine whether they use the service in the future or recommend it to others. Airbnb has increased its awareness over the years as 62% of travelers in Germany and France are aware of the service while 76% are aware in the United States.
Among those who are aware, 25% of those who are aware have used the service at least once. The user frequency in 2016 was 3.2 times per year which is similar to 3.3 times in 2015.
6. 53% of travelers use Airbnb because of price
With the low cost of Airbnb compared to traditional hotels, it’s only natural that some travelers would pick the cheaper option to cut costs during the trip.
53% of respondents to the Morgan Stanley study use Airbnb because of the cost savings. 30% use it because of the location, 33% use it because of the authentic experience while 28% use it because of the easy to use site/app.
7. Gangneung is expected to be the most popular destination on Airbnb in 2018
With the 2018 winter Olympics holding in Pyeongchang in South Korea, Gangneung topped the list of trending destinations going into the year 2018. The bookings for accommodations in 2018 has gone up by 2175% for the city.
Other trending locations based on users’ booking are Edmonton, Canada whose orders are up by 284% in 2018, Indianapolis which is up 256%, and Columbus which is up 254%. Other cities include Da Nang and Hanoi, both in Vietnam, which are up 255% and 212% respectively, Matinhos and Guarapari, both in Brazil, which are up 209% and 205% respectively.
Apart from apartments, Airbnb users are going for other types of accommodations different from the conventional apartments. For instance, bookings for nature lodges have gone up by 700% while that of RVs have gone up by 133%. Sadly, Hotels lose $450 million to Airbnb in annual revenue.
8. Airbnb hosts could pay 81% of rent by listing a two-bedroom home
By analyzing major cities in the U.S., SmartAsset found that Airbnb hosts could pay between 70% and 100% rent of their two-bedroom apartment depending on the city and how many days the room was occupied.
It found that Miami and San Diego are the most profitable cities for Airbnb hosts. This is because these two cities have a more affordable housing system than the expensive cities like San Francisco and New York. The study found that in Miami, San Diego, Chicago, and Philadelphia, renting a room out of a two-bedroom apartment on Airbnb could pay 90% of the apartment’s total rent.
In Houston, the prospect is even better as it could pay the entire rent at an average occupancy rate of 64%.An Airbnb host could pay their full rent in Miami and Philadelphia if they fill their room for 21 days. They could achieve the same goal in San Diego if they fill the room for 24 days. Although it has to be noted that a host would have to beat the average occupancy rate to achieve these figures.
9. 54% of Airbnb guests are female and 46% are male
That’s 4% higher than the percentage of males who use Airbnb properties. Does it mean that females travel more than males? [source]
In line with this, hosts are often skeptical of the guests they’re going to share living spaces with. There are hosts that feel uncomfortable having the opposite sex as guests in their homes. A mom recently came to Airbnb discussion board to explain why she doesn’t take male guests; seeing she lives with her teenage daughter.
According to the Nondiscrimination Policy, Airbnb allows you to make your listing visible to the gender that you want when you share living spaces with them. Whether it’s for short-term or long-term, protect yourself by sticking to females or males if that’s what you want.
If you discover that males are looking to book your listings whereas you prefer females and vice versa, you can state clearly that you’re offering female-specific accommodation. Make it clear in the house rules that you’re only interested in female guests.
10. 88% of reservations are for 2 to 4 people
This is a clear indication that many people are sharing spaces more and more. If 88% of reservations are for 2 to 4 people, what could be the cause? Could it mean that the guests want to save money or ensure their safety?
Maybe. Since millennials are traveling a lot these days, it’s possible that a group of friends may choose to share a living space together so they don’t lose grip of why they came in the first place. Bear in mind though that a tiny 7% of reservations are for single guests on Airbnb rentals. The discrepancy is large but it could be for good reasons.
$20,619 is the average expected profits of renting a two-bedroom apartment for a year. When it comes to earnings, a host can make a good living sharing his living space with travelers from around the world.
Airbnb estimated that if a host rents out a two-bedroom apartment for a year, he or she can earn an average expected profit of $20,619. Interestingly, with a smaller annual income per listing of $7,770, hosts can take care of the mortgage, pay cleaners for Airbnb hosting, and even handle their own vacation.
11. There are 660,000 listings in the United States
Airbnb’s growth is alarming and threatening hoteliers. Having recorded more than 4 million spaces for rent across the world in 65,000 cities and 191 countries, the company is waxing strong in the United States with approximately 600,000 listings.
Some of the cities in the United States where Airbnb has a firm root are New York, Seattle, Washington D.C., New Orleans, San Francisco, Los Angeles, and Denver.
12. Airbnb generated $93 million in profit in 2017
Airbnb generated $93 million in profit in 2017 on a 2.6 billion revenue, according to Bloomberg’s Olivia Zaleski.
As a profitable business in the hospitality industry, Airbnb had already raised $4.4 billion in venture funding, including a round funding that made the company worth $31 billion. It doesn’t seem to raise more funds since it already has $5 billion in the bank.
13. There are Airbnb homes in 81,000 cities in 2018
The beauty of Airbnb is how much ease they operate. The company has so much simplified the entire process of getting a space to sleep at night when you’re traveling.
With more than 150 million guests who are interested in Airbnb’s hospitality worldwide, Airbnb has established relationships with hosts in 81,000 cities of the world in a bid to provide the most conducive space for travelers.
14. About 2 million people stay in Airbnb rentals across the world during an average night in 2018
Welcome to the world of trips. Airbnb is growing at a rapid rate. It’s attracting hosts and guests with alluring experiences that make them fall in love with the company.
With this growth rate, you wouldn’t be surprised to know that hundreds of thousands of guests use Airbnb services every single day. In fact, on an average night, 2 million guests stay in Airbnb rentals around the world.
That’s a big leap especially when you consider that less than 200,000 guests were recorded to have used Airbnb’s rentals back in 2016.
15. Millennials account for roughly 60% of all guests who have ever booked on Airbnb.
Millennials are everywhere! Roughly 60% of all guests are millennials who booked on Airbnb. For millennials, traveling provides another conduit for them to explore the world while improving their life’s pursuits, careers, and habits simultaneously.
According to Travel Weekly, these millennials are embracing new technology, experiences, and unique ways of traveling. About 42% of them use ride-sharing apps when they travel.
But that’s not all. About 45% of Australian millennials utilize sharing apps while on the go — like Airbnb and Uberpool.
Airbnb Booking Statistics
16. 11% of more than 500,000 U.S. listings are reserved on a typical night
There seems to be a lot of interest in night reservations. This isn’t only limited to Airbnb but the entire hotel industry. Many people prefer to reserve a rental space at night and it’s become a norm on Airbnb rentals.
That’s why out of the 500,000 U.S. listings, 11% of them are reserved at night. This is impressive because Airbnb celebrated 1 million nights booked in since it started its operation in 2008. Airbnb is a huge threat to the hotel industry because it’s estimated to rack up more than 200,000 million stays in 2018.
Every other night, more than 500,000 U.S. listings are reserved and this trend continues to grow event this year. In less than a decade, Airbnb has redefined how millions of people travel, creating memorable moments and building short-term rental spaces and a global market.
In July 2017, Airbnb had already accommodated more than 50 million “guest arrivals” — the company uses this term to track each trip by individual guest, irrespective of the length of stay.
17. Airbnb users can book 1.9 million listings at any given time
This is the total bookings that have been recorded on Airbnb platform either through their mobile app or via the website. It consists of both night and day bookings which have been awesome, to say the least.
Even though there are no limitations to the number of listings users can book at any given time, other factors such as bandwidth and locations may cause some delay due to a large number of users.
But the technology can accommodate 1.9 million bookings right now. Interestingly, hosts can embed the listings on their website or social media pages to attract potential guests.
18. There’s a million dollar insurance coverage for an Airbnb host
When taking someone into your home, there’s always a level of risk to it. After all, you don’t know their character or history. In some cases, visitors might cause damages to your home through vandalism or theft. They might even cause bodily injuries.
To this effect, Airbnb offers a primary liability coverage of $1 million for their hosts.
This insurance plan covers the host when they have an Airbnb guest. It covers the hosts during this period regardless of other insurance arrangements they have at the time.
There are conditions, limitations, and exclusions to the coverage. Every host must check out the details to know when they’re entitled to insurance. Presently, not every country is covered and you should check to know if your country is covered in the policy.
Airbnb Financials Statistics
19. The average cost of an Airbnb rental is $160.47
If you look at this closely, the average cost of renting on Airbnb is the same as a single hotel room from the top 20 biggest hotel-booking platforms.
An Airbnb rental costs an average of $160.47, whereas a hotel room is about $163.90 and some people have testified of enjoying their Airbnb space because it gives them the opportunities to interact with the host and other local inhabitants.
Out of this $160.47 rental cost, a host could make up to $136 per day or $850 weekly.
20. Cost of renting an average home on Airbnb is cheaper than a single hotel room
If you’re traveling to another city or country, one of the major expenses you have to think about is the cost of accommodation. This is even more important if you’re going to stay at the place for an extended period of time.
It’s normal to consider your options to find the cheapest room possible at the right quality for you. At this period of time, you may want to ask: is an Airbnb room cheaper than a hotel room? Well, the answer would surprise you. Not because an Airbnb room is cheaper than a hotel room. But because it’s even better than that. An average Airbnb home costs lower than a hotel room.
A report found that the average daily rate for an Airbnb apartment was $160.47 compared to a hotel room which cost $163.90. The fact that the report was gathered by ShareBetter, an anti-Airbnb lobbying group even gives more credence to the report.
An argument could be made about hotels providing better services than Airbnb as the quality of Airbnb service depends on the particular host. But many people who use Airbnb just want a regular place to sleep and at a lower cost than a hotel.
Furthermore, an Airbnb host could also double as a guide if you’re visiting a new city or country you’ve never visited. They can tell you the places to visit and where to avoid.
This could also save you the cost of paying a guide.
With the way Airbnb is growing at a rapid rate, mainstream hotel bookings should buckle up or they’ll face a difficult time competing with the company.
Research conducted by the Morgan Stanley Report shows that over 50% of Airbnb users in 2016 gladly used it to replace a traditional hotel stay. But the race isn’t won yet — Airbnb needs to up their game by partnering with large companies to accommodate their employee travel needs as well as attract business travelers.
It’s time to do more with the “Business Travel Ready” listings since approximately 70% of night bookings for the U.S. lodging industry are business stays. Airbnb is creating a massive awareness and blazing new trends across the world.
Google search trend shows that Airbnb is already gaining the same attract and frequency as mainstream travel-book and hotel brands, such as Marriott and Expedia. We can only watch and see what happens.