Are Short-Term Rentals More Popular than Hotels?

In the ever-evolving landscape of travel and tourism, the battle between short-term rentals and hotels continues. Airbnb, despite a $500 million net loss in Q4 2023, considerably increased its annual revenue to around $10 billion, earning a net income of $4.8 billion. However, when it comes to the revenue generated in the travel and tourism sector, hotels still reign supreme.

Statista Mobility Market Insights data shows that within the eight leading economies, hotels take the lion’s share of revenue in several sectors such as cruises, package holidays, camping, and vacation rentals. Italy stands out with the highest share of vacation rentals, accounting for almost 16 percent of the total market revenue. It is worth noting that the relationship between Airbnb and Italy has had its challenges, as Italian authorities seized 780 million euros from the online platform due to suspicions of tax evasion. The case reached a resolution in December when Airbnb agreed to pay 576 million euros without admitting direct liability.

In 2024, we can expect the tourism and travel industry in countries like the United States, the United Kingdom, and Japan to remain closely tied to hotel bookings. According to experts at Statista, these bookings are projected to contribute a substantial 54 to 62 percent of the total market revenue. On the other hand, Germany has one of the lowest combined revenue shares of hotels and vacation rentals, predominantly due to the country’s inhabitants’ preference for package holidays.

Overall, analysts anticipate that the revenue in all market segments worldwide will reach a staggering $927 billion in the upcoming year. The United States, China, and Germany alone are projected to contribute nearly half of this revenue.

As the travel and tourism industry continues to evolve, it will be interesting to observe the ongoing battle between short-term rentals and hotels. Both options offer unique experiences for travelers, and as the market demands shift, the competition may change as well. Whether you’re a fan of hotels or short-term rentals, it’s clear that the travel and tourism industry will keep thriving, bringing in ongoing revenue. Despite a fourth quarter net loss of $500 million in 2023, the short-term rental platform had a successful year, boosting its annual revenue to near $10 billion and net income to $4.8 billion.

Nevertheless, the hotel business is still far more important regarding the revenue generated in the travel and tourism sector.

Statista Mobility Market Insights chart reveals that hotel accommodation leads in revenue share across the top eight economies. This dominance is evident even in comparison with cruises, package holidays, camping, and vacation rentals. Italy had the highest share of vacation rentals, which encompasses vacation homes and short-term rentals, in total market revenue with almost 16 percent. The relationship between Airbnb and the Southern European nation, in particular, is fraught. In November, Italian authorities seized 780 million euros from the online platform due to the suspicion of tax evasion. The case was settled in December with Airbnb agreeing to pay 576 million euros without admitting direct liability.

According to Statista, it’s estimated that hotel bookings will continue to play a significant role in generating revenue for the travel industry in the US, UK, and Japan. In fact, they are expected to account for an impressive 54 to 62 percent of the total market revenue by 2024. Germany has one of the lowest combined revenue share of hotels and vacation rentals, which can be attributed to the country’s inhabitants’ fondness for package holidays

Sources:

– Statista: Chart of the Day, Statista Mobility Market Insights

#Hotels #Shorttermrental #Airbnb #PandaPodHotel #Travel #Accomondation

  • February 19, 2024
  • News
  • Comments Off on Are Short-Term Rentals More Popular than Hotels?