Is Airbnb declining?

“The Airbnb collapse is real,” says Gerli in the Tweet, citing data showing revenues declining by as much as 50 percent in cities like Phoenix and Austin. Revenues have also declined by at least 34 percent in other cities, like New Orleans, Seattle, and Orlando, according to Gerli's analysis.



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“Demand is still rising every month, and so are Airbnb's bookings and revenue,” says Lane. “Although hosts in some markets are seeing a correction after a pandemic-driven boom, on the whole, demand remains very strong and we aren't yet seeing an 'Airbnb bust. '”

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He attributed the decline to the end of pandemic-era migration, tweeting: The pandemic is over. Fewer people are working from home / vacationing in states like Montana, Texas, and Tennessee. So the demand is way down.

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“As we said during our first-quarter earnings, more guests are traveling on Airbnb than ever before, with nights and experiences booked growing 19% in the first quarter of 2023 compared to a year ago.”

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But there are now signs that this trend of increased Airbnb listings might be coming to an end as the market reaches saturation in 2023, with Airbnb's CEO warning of a booking slowdown. At the same time, vacation rental management companies reported a 13% drop in revenue per property in the first quarter of 2023.

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Higher Nightly Rates Nightly rates have continued to increase in the first half of 2023, but the rate of increase has decreased significantly. During the pandemic, rates increased an average of 12% a year, while 2023 is on track for a 1.7% increase, according to a Key Data report.

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But not only did Airbnb and competitors like Vrbo survive — they flourished. AirDNA estimated that bookings increased year over year by about 21% in 2021 and by another 21% in 2022.

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With a strong emphasis on trust-building between strangers and a growing appeal among Gen Zs, Airbnb is poised for a future that could include everything from short-term stays to long-term housing subscriptions.

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Considering the current trends and market analysis, it can be concluded that while the Airbnb market has witnessed a surge in listings and increased competition, it is not necessarily oversaturated. The market continues to exhibit healthy demand, and certain locations remain strong and resilient.

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Airbnb is forecasted to grow earnings and revenue by 15.2% and 12.2% per annum respectively. EPS is expected to grow by 14.2%. Return on equity is forecast to be 35.9% in 3 years.

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As one key viral tweet framed it, new data shows Airbnb is collapsing; revenue is tanking for Airbnb properties across key metros in the U.S. from Phoenix and New Orleans to Austin and Denver. According to the cited AllTheRooms data, in some cities revenue dipped nearly 50%.

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4. Threats Of Airbnb
  • Decreased Travel Demand: Due to the worldwide pandemic, the whole travel industry is suffering and so is Airbnb. ...
  • Increased Competitions: Airbnb tries to stand out as a powerful player in attracting hosts and guests. ...
  • Laws and Regulations in Every Country: Airbnb operates in around 192 countries.


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Hence, the flexibility and reach of Airbnb are additional reasons to consider it as a disruptive innovation platform. In general, there are many regulatory hurdles and huge upfront costs in building new hotel properties. However, Airbnb does not need to build a new property to provide accommodations at a new location.

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Airbnb properties can be a great way to generate rental income in the vacation rental market. In 2023, Airbnb remains a good investing choice for many. However, there are various considerations that can affect the profitability of an Airbnb property, including: location, property type, pricing, marketing and so on.

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In 2023, Airbnb hosts can expect an evolving landscape due to increased demand and higher nightly rates. This might result in increased revenue but also attract greater competition as more property owners enter the market.

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These Airbnb owners are getting ready to sell because of Airbnb bust, a downturn in the short-term rental market that started in the second half of 2022, with Airbnb operators in some cities facing a 50% decline in revenue.

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Full-year revenue jumped 40% to $8.4 billion. Net income hit $1.9 billion for the year, the company's first full year of profit on a GAAP basis. Wall Street projects a full-year profit forecast for Airbnb of $4.52 a share, up 62% vs. 2022, then rising another 12% to $5.07 in 2024.

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between 42 and 63 percent of [Airbnb guests] would not have resulted in hotel bookings if Airbnb were not available.” Nevertheless, it's estimated that the bookings that hotels are losing to Airbnb are cutting into hotel profits by up to 3.7 percent.

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According to the latest long-term forecast, Airbnb price will hit $150 by the end of 2023 and then $200 by the middle of 2025. Airbnb will rise to $250 within the year of 2026, $300 in 2028, $350 in 2030, $400 in 2033 and $450 in 2035.

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Rob started his journey four years ago with little information and money, but lots of hope (and a supportive spouse). Today, he owns 14 short-term rentals (and counting!) and has made over $1.5 million in booked reservations on Airbnb. Are you interested to know how he got here?

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However, this has partially contributed to a housing shortage that has impacted the globe, driving up rent prices in almost all major cities. This correlation between the increase of homes that have become dedicated to serving as Airbnbs and the rise in rental rates has been dubbed “The Airbnb Effect”.

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