Sydney hotels are offering deals about as good as anything available on Airbnb, with the difference between the two being negligible, according to new analysis by hotel data group STR.
The report, cited by the Australian Financial Review, compared prices quoted on over 5000 Sydney Airbnb listings against average daily hotel room rates. It found that on average guests saved just one dollar (AUD 1) a night by booking through Airbnb.
Startlingly, the report said that Airbnb now hold 29% of the 55,400-room Sydney accommodation market, with more than 16,000 listings. Just as surprisingly, 61% of listings are entire homes or units – not just a room.
Hotel operators are pressing the authorities to level the playing field and regulate Airbnb. The STR findings are likely to strengthen their case.
Only a couple of month ago, a study undertaken in the US produced similar findings, but even more in favour of hotels. It showed that over a measured 12-month period, the average daily rate (ADR) for Airbnb rooms was significantly higher than the equivalent at hotels.
Other studies have shown that a small number of Airbnb hosts who treat the room-sharing service as a full-time occupation generate a disproportionate share of Airbnb revenue.
The US study, released in February, was carried out by CBRE Hotels and publicised by Skift.com. It examined a recent 12-month period and found the ADR for Airbnb rooms was USD 148.42, while hotels had an ADR of USD 119.11 and traditional bed and breakfasts had an ADR of USD 103.25.
In other words, hotel rooms during the period worked out almost 20% cheaper than Airbnb, and B&B accommodation was on average 30% cheaper than Airbnb.
The US report noted that Airbnb units tend to have more services and features than a hotel room, including kitchens, extra bedrooms, and parking, depending on market.
An earlier study of Airbnb hosts, produced by Penn State University for the American Hotel and Lodging Association (AH&LA) also produced interesting insights.
Skift.com summed up that study’s key findings as:
- Full-time hosts represent 3.3% of hosts and generate 28.5% of revenue
- Multiple-unit operators account for 40% of Airbnb revenue.
- Multiple-unit operators are responsible for USD 500 million of USD 1.3 billion in revenue in the top 12 markets.
- Hosts that rent three or more units represent 7% of hosts yet generate 25% of revenue.
- Hosts who rent more than one unit are the fastest growing segment of hosts on the site.
Written by Peter Needham