If you’d like to gain insights into Airbnb statistics for 2023 and see if it’s going to be a profitable year for Airbnb investors, read this guide.
Making a successful investment is rooted in precise data calculation, in-depth research, and experience.
Table of Contents
- What Was the US Airbnb Market Like in 2022?
- What Will the US Airbnb Market Look Like in 2023?
- How to Have a Profitable Year With Your Airbnb Business
Given the current situation in the US housing market and the constantly changing trends, the demand for Airbnb still increased over the past two to three years.
More and more investors are interested in adding Airbnb properties to their portfolios, mainly because of their advantages—including passive income, flexibility, and tax benefits.
However, before researching the market and making the final decision, investors need to pay attention to Airbnb statistics for 2023 and get familiar with current trends in real estate.
On that note, here is some good news:
Researching and gathering data—one of the crucial elements in investing—is easier with the use of online tools specifically designed for the said purpose, such as Mashvisor.
To find out more about statistics that can help forecast Airbnb profitability for 2023, stick around until the end of this article.
What Was the US Airbnb Market Like in 2022?
Airbnb managed to make an impression on the whole world; that is a fact.
It’s safe to say that Airbnb changed how people travel—in more ways than one. It is also worth adding that, according to statistics from The Zebra, Airbnb hosts around half a billion people per year.
When it comes to any kind of investment—including short term rentals—the best indicator of how things are going are the statistics.
And in the case of Airbnb properties, the numbers speak for themselves.
Since today’s topic is based on the statistics of Airbnbs, we’d like to start by laying out some facts:
- More than one billion people have stayed at an Airbnb.
- Approximately 60% of Airbnb’s users are millionaires.
- Airbnb’s listings span more than 220 countries and regions.
- Over 150 million people rely on Airbnb for booking their vacation stays.
The above statistics indicate the global effect of Airbnb. With the vastness of the US housing market, it’s evident that Airbnb has significantly impacted guests, hosts, and investors.
Making predictions about investing in Airbnb based on the statistics at hand does require an overview of what happened in the year behind us. Trends tend to “stretch out” at times—and it is important to consider historical trends to see the whole picture.
So, without further ado, let’s go through the trends that marked the Airbnb statistics of 2022:
Guests Opting for Longer Stays
It appears that a lot has changed since the pandemic in terms of the statistics related to short-term rentals.
Before COVID-19, Airbnb bookings that lasted 20 days or longer represented barely 17% of the gross bookings.
However, after the situation began to calm down a bit, certain “changes” took place—one of them being remote work. It may not seem that way, but remote work had a lot of influence on tourism statistics—and Airbnb, in particular.
In 2022, statistics regarding Airbnb witnessed an increase in bookings—primarily due to the flexibility of remote work.
Older tourists were affected the most by such a change. In fact, they were four times more likely to book trips longer than a week—which is a notable improvement in Airbnb statistics.
Vacation Rentals Over Hotels
Hotels are slowly (but surely) falling into the shadow of Airbnb—and there are many reasons for that, including destination, comfort, and affordability.
The year 2022 witnessed an enormous jump in Airbnb statistics compared to hotels—which only proves our point.
Besides, it’s important to mention that Airbnbs are a much safer option than hotels. Investors do not skimp on securing their rental properties, boosting confidence among potential guests.
Of course, one of the biggest surprises of 2022 was certainly inflation. When it comes to tourism, it can make or break a market—and affect the guest’s choice of accommodation.
Struggling to survive, the hotel industry was forced to raise their nightly rates. Regarding Airbnb rental rates, investors enjoy more flexibility to price their rental in accordance with trends and nearby competitors.
As you can imagine, it influenced many tourists to go with Airbnb as their go-to choice of accommodation. Additionally, there’s the matter of flexible cancellation policies, which certainly contributed to pushing Airbnb in front of hotels.
Interest in Large Spaces
Moving on with Airbnb statistics that marked 2022, we can’t skip the interest in larger spaces among tourists.
In 2021, approximately 27.3% of bookings were for one room, 24.4% for two rooms—with as much as 38.8% of bookings including three or more bedrooms.
It could be families with kids, younger people traveling in groups, or professionals who need an office space while on the road; either way, Airbnb in 2022 meant more space for guests.
The math is simple:
If you decided to invest in a multiple-bedroom Airbnb in 2022, you are already ahead of your one-bedroom competitors.
We also can’t ignore the statistics tied to the price-per-booking comparison between three rooms in a hotel versus a comfy Airbnb. The latter is generally a more cost-effective option.
Related: What’s the #1 Airbnb Hosting Calculator in 2023?
What Will the US Airbnb Market Look Like in 2023?
Even though we’re still at the beginning of 2023, we can already see a few Airbnb trends starting to stand out. If we were to focus on the Airbnb statistics that we’ve collected so far, we could use them to get a glimpse of what the market may look like for the rest of the year.
Tourists Staying Near Home
Remember how we said that some real estate market trends tend to “stretch out” and roll over into the next year?
Well, inflation is one of them. And with gas prices still going strong, tourism is compelled to take a step back.
Granted, the situation is not that bad. But when we look at Airbnb statistics for 2023, we can notice that travel enthusiasts are not willing to pay huge prices for airfares. They would rather spend their vacation somewhere near home.
According to a report issued by WTTC, in 2023, 59% of tourists will likely choose to stay within their country—prioritizing near-home tourist destinations.
What we can conclude from the above is that tourism is not actually in danger. Those who enjoyed traveling will continue to do so this year. The key thing here is to follow the statistics and choose a profitable investment property within the country.
Pleasant Customer Experience/Flexible Cancellations
Since they are very close, we’ve decided to join these two trends as the next critical markers for Airbnb statistics in 2023.
What puts Airbnb ahead of hotels is the close interaction with the hosts.
Read the reviews, and you’ll notice that a lot of guests leave comments that mention a more pleasant customer experience when booking Airbnb.
The following statistics justify the popularity of Airbnbs in 2023:
As much as 63% of tourists say that they would rather pay a higher price if it implies a more pleasant customer experience, according to AirDNA.
Also, when it comes to Airbnb stays, we cannot fail to mention those instances where guests must cancel their stay. You’d assume that it would drive down the booking statistics, but actually, it’s the complete opposite.
The Airbnb Flexible cancellation policy allows a full refund of the booked stay as long as they cancel 24 hours before their check-in. With hotels, you would need to cancel your booking at least seven days prior to check-in, or you would be charged a one-night stay.
Related: 40 Cities With the Highest Average Airbnb Daily Rate in 2023
Eagerness for New Experiences
Whether it is traveling to a city or the countryside, tourists are always enthusiastic about new experiences. In a sense, the variety of Airbnb locations makes it easier for them to get closer to their dream destinations—and save money in the process.
Since Airbnb rentals can involve many different types of properties, it has significantly affected their popularity—and changed the statistics for the better.
Depending on their preferences, guests can stay at an Airbnb that is close to the beach or in the middle of nowhere and enjoy the beauty of nature and have some peace and quiet. You are not simply giving them a place to stay; you get to sell them a unique local experience.
How to Have a Profitable Year With Your Airbnb Business
Monitoring Airbnb statistics means researching every part of the short term rental strategy—but it also means taking your current situation as an investor into account. That is to say that your current circumstances help dictate the further course of your investment.
With statistics showing that Airbnb investing was profitable in 2022 and that the positive trends will continue in 2023, those interested in short term rentals should not give up.
As long as the statistics look promising, there is hope for a profitable year.
To help investors prosper with their Airbnb investment in 2023—and push the statistics even higher—we’d like to share some tips on how to run a profitable Airbnb business this year.
Price the Property Accordingly
The first thing you should know about running a successful Airbnb business is that you need to put a reasonable price on your nightly stays. Cost-effectiveness is among the key reasons why people opt for renting an Airbnb rather than staying at a hotel, after all.
On that note, investors shouldn’t ignore the local statistics and data if they hope to generate profits. Your nightly rates should follow the principles of comparative pricing.
Here are some tactics on how to price your Airbnb:
- Calculate your costs per night
- Try to figure out the minimum nightly rate
- Research your competitors
- Adjust the rate to the current market demand
- Offer discounts for longer stays
- Use investment tools like Mashvisor for a price estimate
Take the above-mentioned tactics into account, and the 2023 Airbnb statistics are bound to go in your favor.
Sign up for a 7-day free trial and get instant insight into everything about your Airbnb investment—including what you can do to improve.
Present Your Airbnb Realistically
Naturally, it is your aim to present your Airbnb in the best possible light. However, if you want your Airbnb business to be successful, it’s important to do it in a realistic way.
Low occupancy rates will cause not-so-great Airbnb statistics, which automatically lead to a failed business. It doesn’t mean that you shouldn’t be honest, though.
Any form of “misrepresentation” of your investment property can drive Airbnb statistics down, as well. That said, you want to put the same amount of effort into representation as you did into your initial research.
Be sure to include an accurate description of the property, provide some basic details about the space and amenities, and attach high-quality photos. At the same time, be upfront about potential “quirks” and oddities your rental may have.
We understand that giving your services away and lowering your prices is probably not on your wishlist. It does not mean that occasional discounts cannot bring you profit, though.
You see, a chunk of successful Airbnb statistics comes from hosts who offer promotions and discounts for longer stays, for example.
Offering small discount stays can actually ramp up the statistics and the occupancy rates for your Airbnb property—because it can make your property more attractive to potential guests.
If you would like to include occasional discounts, here are a couple of ideas:
- Length-of-stay discounts
- Extra night discounts
- Last-minute discounts
Airbnb allows hosts to create custom promotions, so try out a few different ones to see what works for you.
Provide Information on Local Highlights
Another way to ramp up your Airbnb statistics and increase the occupancy rates is to provide information about local attractions and highlights in the area.
Potential guests will undoubtedly do their homework before booking their stay in your Airbnb. That said, you’re also expected to provide some information about the location of your rental property and everything the surrounding area can offer.
Generally speaking, Airbnb properties that are located in the middle of urban areas, with lots of activities and entertainment options, will achieve better statistics. Of course, it depends on your target demographic, as well.
Airbnb Statistics 2023: Summing Up
We’ve successfully come to the end of Airbnb statistics 2023. So, at this point, you have a better understanding of how relevant statistics, demographics, location, and prices have all contributed to the rise and popularity of Airbnb throughout the years.
We started off by highlighting crucial statistics connected to the worldwide popularity of Airbnb before moving closer toward the US rental market in particular and discussing some historical trends.
The 2022 housing market was certainly a profitable one for Airbnb. In fact, the statistics for 2022 indicated an interest in longer stays, the overall popularity of vacation rentals, and a demand for larger spaces.
So far, the 2023 statistics aren’t bad, either.
Yes, we’re still under the influence of inflation and other less-favorable factors, but the Airbnb market is standing strong.
However, it seems that this year, the focus will be on seeking new experiences at near-home tourist destinations.
In order to run a successful Airbnb business in 2023 and maintain good statistics, it is crucial to price the property fairly and comparatively. You also need to present it realistically and offer discounts when possible.
We would like to remind you that staying on top of things and obtaining insights into the relevant statistics, data, and market trends is easier with Mashvisor’s investment tools.
While we mostly focused on statistics in today’s article, there is one more thing we would like to add before we sign off:
Mashvisor offers a free demo for prospective investors who are looking to upgrade their investment strategy. To learn more, schedule an appointment with one of our Product Specialists and get a free introduction.