What is Airbnb?
In an industry that has been a source of frustration for Airbnb owners, a new study suggests that the site’s business model has generated more than $6 billion in new revenue for the hotel industry in Australia.
In addition to hotel rentals, the site has a wide range of other services, including car rental and short-term accommodation, which provide more affordable and convenient ways for guests to make the trek to and from their destinations.
The study, by PricewaterhouseCoopers, the consulting firm, looked at the revenue from short-stay rentals in Australia from July 1, 2018, through December 31, 2020.
The company used data from Pricewaterhill’s hotel occupancy index, which tracks the number of rooms in a hotel, to calculate the total number of people staying in hotels and guest rooms in Australia over that time period.
It found that Airbnb’s revenue in Australia increased from $8.3 billion to $12.3 million over that period.
For comparison, the company reported $4.6 billion revenue in the United States in 2018.
While Airbnb’s business has seen its share of growth in Australia, the firm’s study indicates that the firm still has much more to do to grow in the country.
For instance, it found that the number and type of short- and long-term rentals, as well as the availability of car rentals, remain strong across the country, despite recent trends in the industry.
The growth in the short- stay rental industry is expected to continue, but it will take time to make up for the fact that it has been so successful in Australia in the first place.