On The Market

143: How the Hotel vs. Airbnb Battle Completely Flipped w/Jamie Lane

Sep 25, 2023

Jamie Lane, an expert in the hotel vs. Airbnb battle, discusses surprising statistics about short-term rental occupancy, the impact of the post-pandemic world on the industry, and tips for finding smaller markets with decent profit potential. They also explore the preference for staying at hotels, the evolution of the short-term rental market, and the benefits of hotels versus Airbnb.

44:34

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Episode guests

Jamie Lane

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Episode notes

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Quick takeaways

The short-term rental industry is not collapsing, with overall occupancy rates normalizing after a period of heightened performance in 2021, indicating its resilience and viability for investors.

Short-term rentals continue to offer competitive pricing and unique amenities, with average daily rates (ADR) 40% higher than in 2019, although the rate of increase may be slowing down due to declining occupancy rates and increased competition from hotels.

Deep dives

The State of Short-term Rentals: Demand and Occupancy

According to Jamie Lane, the VP of Research at AirDNA, the short-term rental industry is not experiencing a collapse as some headlines might suggest. In fact, overall occupancy rates have been normalizing after a period of heightened performance in 2021. Although supply has increased by 25% compared to 2019, demand has not seen a significant growth and is essentially flat. The normalization of occupancy rates is a healthy sign for the market, and while there may be declines in occupancy in certain markets, overall performance remains strong with most markets still above 2019 levels. This indicates that the short-term rental industry is holding steady and continues to be a viable option for investors.

Introduction

3min

Exploring Short-Term Rental Data Analytics with AirDNA

3min

The Impact of Short-Term Rental Industry on Hotels

31min

Preference for Staying at Hotels Over Airbnb

2min

Opportunities and Challenges in the Short-Term Rental Market

2min

Benefits of Hotel vs Airbnb and Bigger Pockets Beta Membership

3min

The hotel vs. Airbnb battle may have just completely flipped. Post-pandemic, it seemed as if short-term rentals were the only places worth staying when traveling. Having a house with multiple beds, a kitchen, a private yard, and parking was considered too good for hotels to compete with. But, as the world reopened, travelers got tired of cleaning up after themselves and taking out the trash, and hotels began to claw back market share.

With the idea of a short-term rental “collapse” constantly being pushed throughout mainstream media, we brought on AirDNA’s Jamie Lane to give us the facts about how the hotel vs. Airbnb battle is going. Jamie walks us through some surprising statistics about short-term rental occupancy, why things are starting to change in a post-pandemic world, the real estate markets seeing the worst (and best) performance, and how hotels are faring.

For those who have seen their short-term rental markets start to struggle with so much supply and not enough demand, Jamie has some insider-only tips on finding smaller markets where you can still make a decent profit and how owning an international vacation rental may be your best bet as Americans leave the road-tripping and domestic flights behind.

In This Episode We Cover:

The short-term rental “collapse” and why occupancy is starting to fall

The markets experiencing “normalization” as domestic travel becomes less popular

Must-have short-term rental amenities that can almost guarantee you bookings

Hotels vs. hosts and why Airbnb is losing market share to free buffet breakfasts

Short-term rental regulations and how bans will impact hosts in every real estate market

And So Much More!

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