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Is Airbnb Dead? What are the Critical Factors Impacting the Airbnb Market?


Airbnb is an American company that rents homes for short and long periods of time. It was started in 2008 by Brian Chesky, Nathan Blecharczyk, and Joe Gebbia. Airbnb stands for This company takes commission on every booking and is most popular for short-term rentals.

Why is Airbnb Dead?

Airbnb hosts at popular vacation spots are facing a decline in bookings and earnings. With so many properties available, competition has increased. According to Airbnb, revenue per room has declined in places like Orlando, Joshua Tree, Gatlinburg, and Pigeon Forge.

The Significant Impact of the Pandemic on Airbnb Business

Is Airbnb Dead?

  • During the COVID-19 pandemic, people were moving away from crowded cities, which initially increased demand. But as long-distance travel resumed and more people began renting out their homes, the market declined due to a glut of properties.
  • The lockdown led to a 25% drop in the supply of short-term rentals, said Jamie Lane, chief economist at Airbnb.
  • Hosts are now luring guests by lowering prices, improving amenities and making the property attractive. Airbnb’s stock price remains strong, but a shift is clearly visible in the market, in which only those who can stand out from the crowd are succeeding.

Adapting to Change: Critical Factors Impacting the Airbnb Market

  •  Regulatory Issues :- Regulatory concerns are the biggest lifesaving threat to Airbnb and similar platforms. Local legislators in some popular vacation areas have enacted certain laws that limit the use of short-term rentals, making it difficult to use Airbnb in those locations. It’s almost impossible.

New York City is implementing rules in 2023 that require short-term rentals to register with the city if they want to host for less than 30 days. They must also live in that residence, must be accompanied by a guest, and only two guests can be accepted. In addition to New York, a permit is also required in Memphis. Renting for more than 90 days is not allowed in San Francisco. Hawaii is also thinking of bringing similar rules.

  • Airbnb Affordability :- Rising housing prices are another problem that is affecting the short-term rental industry. The biggest feature of AirBnB in its early days was that they were cheaper and more convenient than hotels. But as interest rates continue to rise and housing costs continue to rise, AirBnB hosts have been forced to raise their rates. As a result, the accessibility advantage of short-term rentals compared to hotels is now diminishing.

UK-based consumer advocacy publication “Witch” compared hotel and AirBnB prices in 50 major markets around the world. According to them, one-bedroom AirBnB rentals are more expensive than hotels in 75% of the markets they studied. Like hotels, AirBnB offers some benefits, such as price, privacy, and an authentic travel experience, but hotels also have amenities like maid service, room service, and concierges. Therefore, most travelers are less attracted by the rising prices of short-term rentals.

Is Airbnb Dead?

  • Neighborhood Disturbances :- AirBnB also has a bad reputation for bad customers who are responsible for the chaos in the neighborhood. Hotels are often in commercial areas where noise and activities are prohibited. This is kept more under control through the presence of front desk staff and security resolution, giving them a way to handle the mess they are making.

But that’s not the case with short-term rentals like this one. Your neighbor can rent out his house on Airbnb while he is on business or living in another city. Hosts are allowed to make rules, but these can be difficult to enforce, especially when a guest makes a mess.

Many people take Airbnb for parties or special occasions, which can cause trouble to neighbors. Due to this, many homeowner unions are taking action to shut down Airbnb in order to keep other residents safe.

  • Competition from Other Platforms :- The growing presence of other short-term rental platforms such as Vrbo and has increased pressure on Airbnb in the market. These platforms have launched similar services and boosted their offerings and marketing. This competition has forced Airbnb to invest more in innovation and user experience, which can strain resources and impact profitability.
  • Economic Factors :- General economic conditions, such as inflation and people’s spending patterns, also affect Airbnb. When the economy is not doing well, people usually spend less on travel and vacations. If potential guests are spending less on travel, Airbnb bookings will also decline. Additionally, changes in currency values ​​can make international travel more expensive or cheaper, affecting Airbnb hosts who have foreign guests.


Airbnb must face new challenges to succeed and expand. Changes in the economy, competition, and changing travel expenses require Airbnb to push toward new experiences and services to grow. Along with this, it is also important to respect the local and international rules and regulations so that this industry can run successfully in the long run.

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