Airbnb: Long-Term Stays Present ‘Huge Growth Opportunity’
With some cities suffering housing shortages, Airbnb is eyeing long-term stays.
The vacation rental company is focused on expanding its long-term rental business, meaning stays of 28 days or more, CEO Brian Chesky said at a travel conference, Reuters reported Thursday (Sept. 19).
“Stays of 30 to 90 days, monthly stays, the seasonal stays, I think that’s a huge growth opportunity,” said Chesky, per the report.
Long-term rental bookings have grown in recent years, accounting for 17% to 18% of the company’s business, up from 13% to 14% before the pandemic, according to the report.
The company wants to expand its long-term rental and experience businesses while also providing new services such as matching people with homes who do not have time to be Airbnb hosts with people who want to be hosts but do not have properties to list, the report said.
The company also sees sponsored home listings as a billion-dollar revenue source, according to the report.
The efforts come as governments worldwide crack down on short-term rentals to boost the housing supply for full-time residents, with countries like Greece and Spain constricting vacation rentals to address housing shortages, the report said.
Airbnb is challenging regulations in New York governing short-term rentals, calling on the city earlier this month to ease its restrictions. It said Local Law 18 — which requires short-term rental hosts to be licensed by the city and follow occupancy rules and building codes — has not lowered rents, while hotel prices continue to increase.
City officials said the law helps New York enforce its rental codes, something many hosts have violated.
Although global business travel spending is expected to reach a record high in 2024, certain consumers are decreasing their travel spending.
The PYMNTS Intelligence report “The Last Transaction: Family Spending Habits Reveal Merchant Opportunities in Retail and Travel” showed changes in spending inspired by inflation.
“In terms of travel, married parents with children at home were 77% more likely to make a travel purchase recently than married couples without children,” PYMNTS reported in July. “However, despite their higher likelihood of purchasing travel services, their spending per trip has decreased. The average amount consumers spent on travel services in the 30 days prior to being surveyed was down from $389 in 2022 to $326.”
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