Choosing the right accommodation when traveling can be a headache. For many, picking the right hotel is like playing the lottery – you just don’t know what you are gonna get. But in 2008, lodging changed forever. That was the year Airbnb got off the ground, offering a brand-new experience for travelers.
Fast forward to over a decade later and one would be hard-pressed to find a traveler unfamiliar with Airbnb. The revenue being pulled in is equally telling. The company that started out with a couple of air mattresses in a San Francisco apartment now offers houses, RVs and even castles for rent. Over the years, Airbnb gradually evolved into a major competitor for the hotel industry, taking a sizeable chunk of their profits. Check out our stats to find out how big Airbnb is today.
A glance at Airbnb revenue
- Airbnb has more than 150 million users.
- Airbnb revenue enjoys a global compound annual growth rate of 153%.
- More than 2 million people stay with Airbnb every day.
- On average, lodging with Airbnb is 17% cheaper than getting a hotel room.
1. There Are Over 6 million Airbnb listings worldwide.
The lodging business is growing rapidly. What started out as air mattresses on an apartment floor, quickly expanded into an entire neighborhood renting rooms and flats. Today millions of places are readily available for travelers to book through Airbnb. Among the available options are rooms, RCVs and entire villas.
2. You can stay with Airbnb in over 100,000 cities throughout 190 countries.
Wherever your travels take you, there is a good chance you’ll find a friendly Airbnb host there. The network is growing fast and with great incentives for hosts, it will only get bigger. If you are looking for an adventure, there are over 1,000 cities with Airbnb experiences. These proved to be very popular among tourists looking to experience a city without needing to stay in one place.
3. Airbnb is valued at around $38 billion.
After several recent acquisitions like UrbanDoor and HotelTonight, the value of Airbnb spiked to its highest point. Airbnb’s value was estimated at around $30 billion in Q3 2018. In 2019 that number rose by $8 billion.
4. By the end of 2020, Airbnb revenue is expected to rise to $8.5 billion.
Airbnb earns a good chunk of cash by charging both hosts and visitors. Although, Airbnb is very affordable, more luxurious options, experiences and other activities are becoming increasingly popular. In 2017, company revenue stood at $2.8 billion. But experts expect that number to triple during the next year.
5. Airbnb stock is valued at $120 per share.
Airbnb’s worth on the stock market jumped in March 2019. Earlier that month, the company bought HotelTonight, a competitor of sorts that specialized in last-minute deals on hotels across the US, Europe and Australia. After the deal was concluded, Airbnb announced the new stock price.
6. Airbnb bookings in the US rise 45% annually.
Since 2009, Airbnb recorded a global compound growth rate of 153%. Meanwhile, the occupancy rate in 2018 was 62.5% higher than the year before. A growing number of hosts are seniors above the age of 60. This is the fastest-growing Airbnb demographic. It grew by 102% throughout the past two years and is continuing to aid the growth of the company.
7. Airbnb has offices in 34 cities worldwide.
Founded in 2008, Airbnb started out with one office in San Francisco. Three years later they opened their first international office in Hamburg, Germany. Today, Airbnb is an international company with offices across Europe, Asia, Australia and the Americas.
8. Over 4,000 castles are listed on Airbnb.
The appetite for exotic and luxury retreats grew with the number of users flocking to Airbnb. For example, there are over 2,400 treehouses listed on the website. You can also rent Japanese Ryokans, nature lodges, or yurts. As for castles, those offers vary from affordable rooms under a $100 to entire residences. Renting an entire castle in Italy for one night will set you back about $4,000.
9. Only 11% of the 500,000-plus Airbnb places in the US are booked at the same time.
Finding a free Airbnb place is not difficult. On an average night there’s a good chance that the number of unoccupied Airbnb listings far exceeds the number of occupied ones. Of course, during conventions and tourist seasons the occupancy rate goes up.
10. At least 2 million people stay with Airbnb every night.
Today, Airbnb has over 150 million registered users. According to the most recent Airbnb statistics, there are at least 2 million staying at one of the hosts on any given day. On average, a stay at an Airbnb lasts 3 days while only 5% of users book a place for 12 days or longer.
11. Airbnb’s first investment was just $20,000.
In January 2009, Paul Graham from Y Combinator approached the company, offering training for a brand new startup and a lump sum of $20,000. A year earlier, the company’s founders raised $30,000 by selling ObamaO’s and Cap’n McCain’s election-themed cereal boxes. Each of the boxes included information about the company.
12. Google Capital and Technology Crossover Ventures invested $555.5 in Airbnb during 2016.
(Wall Street Journal)
By 2016, Airbnb became a leading online accommodation site. Investments began pouring in from major companies with Google emerging as the biggest one. In March 2017, a fresh wave of investments amounted to $1 billion and the company’s total value rose to $31 billion.
13. The cheapest Airbnb stay is just $14 per night.
One of the main reasons behind Airbnb’s growing popularity is affordability. The vast range of accommodation options offer prices ranging from $14 to $4,000 per night, depending on the guest’s appetite for luxury. An average stay with an Airbnb host costs $80 per night.
14. The average cost of an Airbnb rental is $160.47.
A broader look at what guests are choosing and how long they’re staying reveals that an average cost of accommodation is slightly over $160. According to a survey, every second user on the website prefers Airbnb to more traditional accommodation options.
15. Hosts earn an annual average of $20,619.
Renting your apartment or house can be quite profitable if you go with Airbnb. Estimated profits for homeowners increase if they offer lodging for longer periods of time and if the location can accommodate an entire family or a medium-sized group. Research shows that 88% of all guests are groups of two to four people, and more than half of the customers prefer to have a whole apartment/house to themselves.
16. With 78,000 locations, Paris has the highest number of Airbnb listings.
The largest concentration of Airbnb locations is in the US with over 600,000 listings. But the city with the highest number of listings is Paris, followed by London with 47,000 locations. Other cities with a high number of commercial Airbnb listings include New York, Rio de Janeiro, Los Angeles, Barcelona and Rome.
17. The most popular cities for experiences are Tokyo, Paris, and Osaka.
Airbnb launched experiences in late 2016 as a way for hosts to provide tours and other activities. Unsurprisingly, Japan and France are the two hottest destinations for this form of tourism with visitors preferring the biggest, shiniest cities. There are now 20,000 experiences available, while the recent launch of Airbnb Adventures offers something for the wild hearts.
18. Airbnb covers up to $1 million in damages for its hosts.
Airbnb’s revenue grew parallel with the number of users and potential problems for the hosts. In 2012, the company introduced a Host Guarantee program that promises to cover the damages a property incurred during a visitor’s stay. This comes at no additional cost to the users that wish to become hosts and the company covers up to $1 million in property damage.
19. More guests are female than male.
Airbnb had over half a billion occupants since 2008, of which 54% were women and 46% were men. Regardless of the gender, 90% of the guests had positive experiences, marking their stay as “satisfied” or “very satisfied”.
20. At least 60% of all guests are Millennials.
Airbnb is most popular among the younger generation, especially those aged between 18 and 35. Millennials generally travel a lot more than others. They are tech-savvy and use their smartphones to look out for affordable lodging options. Airbnb is also popular among businesses – over 700,000 companies have used their services for work.
21. The most profitable Airbnb city in the US is New Orleans.
The most profitable types of Airbnb listings in the US are located in New Orleans, which boasts a percentage profit of 5.92%. The city’s growth monthly rental income stands at $3,398.87. Airbnb guests can find 2880 listings in New Orleans and the occupancy rate is at an admirable 52.62%. Nashville come in second with 5.64% profit, but a higher occupancy rate of 54.99%.
22. Airbnb is up to 17% cheaper than hotels.
One of the main drivers behind Airbnb’s revenue stream is the pricing and how competitive it is compared to hotels. Almost everywhere across the US and Europe, Airbnb hosts provide cheaper lodging than local hotels. The competition ensures better services, helping guests feel right at home.
23. Hotels lose approximately $450 million per year due to Airbnb.
The hotel industry has been struggling to expand in recent years and 2016 marked the lowest growth rate in a century. Experts predict that Airbnb will soon exceed hotel revenues, especially since Airbnb bookings outnumbered those in hotels on multiple occasions.
24. Airbnb-related travel had a $100 billion impact on the global economy in 2018.
In all countries where Airbnb hosts opened their homes to travelers, the local tourism industry benefited. Airbnb also helped the tourism sector in less frequented countries, with travelers saying Airbnb locations are more convenient than hotels (86%). One in every two visitors said they ended up spending more money during their stay because they saved on accommodation and actually explored neighborhoods they visited.
25. Airbnb hosts have earned $65 billion so far.
Being an Airbnb host proved to be quite lucrative for many homeowners. Airbnb reported in March 2019 that hosts netted a hefty sum of $65 billion throughout the past twelve years of the website’s operation. By the end of the year, that sum is certain to jump to over $70 billion.
How does Airbnb generate revenue?
Airbnb earns money by charging reservation fees to guests (6-12%) and a processing fee of 3% to its hosts. The fee is non-refundable and is calculated based on the price of the location and the number of people that will be staying together.
Can you make good money from Airbnb?
Becoming and Airbnb host can earn you around $20,000 annually, depending on what accommodation you’re offering and how many people can rent your place at any given time. On average, hosts earn $80 per night via Airbnb.
How much money did Airbnb make in 2018?
The company has not disclosed its exact profits in 2018, but it is known to have made over $1 billion during one of the final quarters of the year. Airbnb has been profitable for two years in a row.
What is Airbnb revenue model?
Airbnb works as a home-sharing service, allowing homeowners to rent their homes (apartments, houses, even castles), while taking a small fee out of every transaction – from both hosts and guests.
Is Airbnb cheaper than hotel?
Yes, lodging with Airbnb is cheaper than booking a room in a local hotel by up to 17%. In fact, the hotel industry is experiencing significant losses due to the growing popularity of Airbnb.
Who is the owner of Airbnb?
Airbnb is a privately held company founded in 2008 by Brian Chesky, Joe Gebbia, and Nathan Blecharczyk. Since the inception of Airbnb, revenue of the company has been growing fast and is expected to reach $8 billion in 2020.