Airbnb’s new Experiences and Places has been filling the news recently, however we should not lose sight of the fact that they continue to expand their influence in the accommodation sector.
Threat to the hotel sector
A recent report from Morgan Stanley Research indicates that the threat of Airbnb is greatest for the hotel sector. Data in 2015 and 2016 shows a significant increase in the number of travellers who have used Airbnb in the last 12 months. In 2015, only 15% of leisure travellers surveyed had used Airbnb, however this rose to 19% in 2016, and is forecast to grow to 25% in 2017. For business travellers, only 12% had used Airbnb in 2015, but this increased to 18% in 2016, and is forecast to grow to 23% in 2017.
Newcastle Gateshead Initiative (NGI) are adding Airbnb's statistics to their Acorn T-Stats system
Considering this level of interest in Airbnb by the consumer, it is of no surprise that destinations are increasingly looking at tracking the use of Airbnb in their area. Newcastle Gateshead Initiative (NGI) is the first destination to add Airbnb data to their Acorn T-Stats System, and already some interesting trends and findings are becoming apparent.
Airbnb room occupancy rates in Newcastle tended to follow the same pattern as the hotel industry during the summer season (May-September), albeit achieving a much lower rate; however they drop off significantly in the winter.
Average room rates in hotels and Airbnb properties are difficult to compare as the Airbnb properties vary considerably from bed and breakfasts through to apartments. Overall Airbnb properties are generating higher average nightly rates, which would be expected as they include multi-room properties. The surge in room rates in Airbnb properties over the period November-December is mainly due to higher rates in rented houses.
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