The impact of the pandemic on travel has left home-sharing battered but with a steady pulse, as rental houses became social-distancing refuges for the travel-starved.
Hotel benchmarking firm STR and short-term rental analysts AirDNA report that home rentals have outperformed hotels in 27 global markets since Covid-19 began. Thanks to the popularity of larger homes, daily rental rates were Airbnb travel higher this summer thanks to the growth in leisure travel. In July 2020, rentals in the United States were about $300 higher than they were in July 2019.
Despite this, global restrictions have squeezed every aspect of the travel industry, including vacation rentals. The occupancy rate on home-sharing platforms, according to STR and AirDNA, dropped to roughly 33 and 36 percent between mid-March and the end of June (average occupancy in hotels was 17.5 percent).
Airbnb is the leading provider of short-term rentals, with over 7 million listings in over 220 countries. Historically, due to its rapid growth and lack of transparency, it has been accused of fueling over-tourism, converting formerly residential areas into tourist zones, and allowing raucous parties despite complaints and virus-related restrictions on gatherings.
What Is Airbnb Travel
Deals About Airbnb is the world’s largest online marketplace for people to list, discover, and book unique accommodations around the world. Founded in 2008 by CEO Brian Chesky and former Facebook executive Joe Gebbia, Airbnb connects millions of travelers to unique accommodations at more than 65,000 homes and apartments in 191 countries. The company is based in San Francisco, with offices in New York City, Chicago, and London.
Lifestyle Vs. Vacation of Airbnb
Airbnb has touted privacy and guests’ control over their environments – such as the option to cook for themselves instead of eating at restaurants – as guardrails during the flu pandemic. In August, the company announced that more than 1 million listings had earned the “Enhanced Clean” certification, which involves training on how to clean and sanitize properties according to new guidelines. A typical cleaning session lasts 45 minutes per room. Before checking in, many listings promise that the apartment will be vacant for 72 hours.
According to the company, its offerings are aligned with the way people travel today: in family and friend groups to less populated regions. It had 30 percent of bookings over Labor Day weekend – double the previous year – in remote areas, though classic getaways like Hilton Head Island, S.C., and Palm Springs, Calif., were among the most popular.
“The pandemic has changed how people work, travel, and live.” Mr. Chesky said the line between traveling and living is blurring. It used to be that you lived somewhere 50 or 51 weeks of the year, and you might take one or two vacations a year. Remote school and work have separated families. According to him, people live differently today and want to live anywhere.
Housing Shortages, Over tourism, And Rising Rents
Some cities are limiting Airbnb and other short-term rental companies, which many blame for hollowing out neighborhoods by converting long-term leases into more lucrative short-term rentals.
“You can earn more money renting out apartments and houses on Airbnb than renting to locals,” says David Wachsmuth, an associate professor at McGill University in Montreal. In reality, what’s happening on their platform is that actual home-sharing is just a fraction of the activity. Commercial interests dominate the platform.”
According to a study published in the Harvard Business Review, rents rise as listings increase in a city. According to the Economic Policy Institute, a nonpartisan think tank, local communities are likely to lose out on the benefits of Airbnb listings due to rising housing prices and shrinking availability.