Navigating the Airbnbust: Strategies for Hosts to Thrive in a Changing Market

Thibault Masson

what is the meaning of airbnbust

The Airbnbust, characterized by an increase in supply on the platform potentially leading to a decrease in bookings per listing, has impacted hosts worldwide. However, understanding the nuances of this phenomenon can help hosts make informed decisions about their listings and adapt to the ever-changing short-term rental market. In this article, we explored the factors driving Airbnb’s growth, the impact of the Airbnbust on existing hosts, and the reality of its effects across different regions. We also discussed how pacing reports could help hosts make data-driven decisions and shared strategies to counter the Airbnbust, such as using market research, creating unique guest experiences, and diversifying short-term rental bookings strategies. By staying informed and adapting to changes, hosts can overcome the challenges of Airbnbust and continue to thrive on the platform.


  • The Airbnb bust, or Airbnbust, is a phenomenon where an increase in the supply of listings on Airbnb leads to a decrease in bookings per listing for existing hosts
  • Factors driving Airbnb’s growth include its strategy to attract more hosts and investment in product innovation
  • The impact of Airbnbust on existing hosts includes a decrease in bookings per listing and oversupply in some markets
  • Regional differences in the reality of Airbnbust include oversupply in some markets and growing demand in others
  • Airbnbust could bring relief to the housing market by reducing the incentive for property owners to convert homes into short-term rentals.
  • To counter the Airbnbust, hosts can use market research to identify the right properties, create a unique and memorable guest experience, and diversify their rental strategy
  • Pacing reports can be used to understand the impact of Airbnbust on short-term rental businesses and make data-driven decisions to optimize pricing and availability
  • It is crucial for hosts to understand their local markets and monitor regional and local trends to navigate the challenges of Airbnbust and continue to thrive on the platform.

I. What is the meaning of Airbnbust?

The Airbnb bust, or “Airbnbust,” is a phenomenon characterized by the rapid proliferation of listings on the platform, subsequently causing a decrease in bookings per listing for existing hosts. This surge in supply can lead to reduced occupancy rates and diminished earnings for hosts as they grapple with heightened competition for a limited pool of guests.

While Airbnb has reported simultaneous growth in both supply and demand, the Airbnbust is more pronounced in certain markets where the expansion of supply has exceeded demand, creating an oversaturated landscape. The repercussions of the Airbnbust period can vary significantly by region, with some areas still witnessing robust demand, while others confront a glut of available listings.

Hosts catering to budget-conscious travelers may be particularly susceptible to the effects of the Airbnbust, as they struggle to remain competitive amid an influx of new, potentially more affordable options

II. Nature of the Airbnb bust

A. Factors Driving Airbnb’s Growth

Airbnb’s sustained growth over the years can be attributed to several factors. Here are some of them:

Airbnb’s Strategy to Attract More Hosts

Airbnb has been actively attracting more hosts to its platform. To do this, the company has implemented several initiatives, including:

  • Turning Guests into Hosts: Airbnb encourages guests to become hosts by making it easy for them to list their spaces on the platform. Hosts can sign up, create a listing, and start welcoming guests in just a few steps. By doing this, Airbnb taps into a vast pool of potential hosts who are already familiar with the platform.
  • Running Ad Campaigns to Reach Out to Late Adopters of Hosting: Airbnb has been running ad campaigns to attract more hosts, especially those who may not have considered listing their spaces before. These campaigns aim to make hosting more mainstream and dispel any misconceptions potential hosts may have about it.
  • Reactivating the Private Rooms Category: Airbnb has recently reactivated the Private Rooms category to attract more hosts who may not have an entire property to rent out. This category allows hosts to rent out a private room or a shared space, making it easier for more people to join the platform.

Airbnb’s Investment in Product Innovation

Another factor driving Airbnb’s growth is its investment in product innovation. The company continually improves its platform to make it easier for hosts to list their spaces and for guests to find the perfect accommodation. Some of the innovations include:

  • Providing Better Tools for Hosts: Airbnb has introduced several tools to help hosts manage their listings more efficiently. These tools include a messaging system that allows hosts to communicate with guests before and after their stay, a pricing tool that suggests optimal prices based on demand, and a mobile app that enables hosts to manage their listings on the go.

Overall, Airbnb’s sustained growth can be attributed to its innovative strategies to attract more hosts and its continuous investment in product innovation. By doing this, Airbnb can offer a better experience for both hosts and guests, ensuring the platform’s continued success.

B. Impact on existing hosts

Decrease in bookings per listing for existing hosts

As Airbnb continues to focus on increasing the supply of properties on its platform, existing hosts may experience a decrease in the number of bookings per listing. This is because the increase in supply creates more competition for guests, who now have a wider variety of options to choose from. With more listings available, guests may be less likely to book the same property multiple times, resulting in decreased bookings for existing hosts.

Oversupply in some markets

The increase in supply on the Airbnb platform can also lead to oversupply in certain markets. In these markets, the number of available listings may surpass the demand for short-term rentals, resulting in a surplus of properties available. When there is oversupply, hosts may find it more difficult to attract guests and may experience a decline in their occupancy rates. This can be particularly problematic for hosts who rely on their rental income to cover expenses such as mortgage payments, property maintenance, and other costs associated with their listing.

III. Reality of Airbnbust

A. Global perspective

Accelerated growth in supply since 2021

Data shows that Airbnb has been growing its supply at an accelerated rate since 2021. According to AirDNA, a provider of vacation rental data and analytics, the total number of active Airbnb listings globally increased by 16% from January 2021 to January 2022.

Not a universal issue

Despite the overall increase in supply, the Airbnbust is not a universal issue. While some regions are experiencing a slowdown in bookings and oversupply, other markets continue to experience growing demand.

B. Regional differences

Oversupply in some markets

In some markets, an oversupply of short-term rentals has become a concern for hosts. For example, in major cities such as New York and Paris, the number of short-term rentals has increased significantly in recent years, leading to oversupply and a decrease in bookings per listing for existing hosts.

Growing demand in other regions

On the other hand, some regions are experiencing growing demand for short-term rentals, leading to increased supply and potential revenue growth for hosts. For instance, in cities like Miami and Las Vegas, Airbnb bookings have seen a surge in demand during the pandemic.

C. Local Government Regulations and Their Impact

Regulations can lower supply

Regulations in some markets, such as New York City and Barcelona, have been introduced to limit the number of short-term rental properties available, leading to a decrease in supply and a potential reduction in bookings for existing hosts.

Regulations can increase supply

In other markets, regulations have encouraged more property owners to list their properties on the platform. For example, in Japan, a new law passed in 2018 has allowed short-term rentals to operate legally, leading to an increase in the number of listings available on Airbnb.

D. Will the Airbnbust bring relief to the housing market?

The rise of short-term rental platforms like Airbnb has had a significant impact on the housing market, particularly in cities with high demand for tourism. In some areas, the increase in short-term vacation rentals has resulted in a shortage of affordable long-term rentals, as property owners opt to list their properties on platforms like Airbnb instead.

As the Airbnbust leads to a decrease in bookings per listing for existing hosts, some experts predict that this may have a positive impact on the economy and the long-term rental market. The reduction in the number of short-term rentals could lead to an increase in the supply of long-term rentals, potentially making housing more affordable for residents.

However, this impact may vary significantly by region. In areas where there is already a surplus of long-term rentals, the reduction in short-term rentals may not have a significant impact. Moreover, it is essential to note that the Airbnbust is not the only factor affecting the long-term rental market, and a host of other variables, such as local regulations and economic conditions also play a crucial role.

Ultimately, it remains to be seen whether the Airbnbust will bring relief to the housing market. While it is possible that the reduction in short-term rentals could lead to more affordable long-term rentals, it is also possible that the impact may be minimal in some regions. Hosts and property owners must continue to monitor market trends and regulations to make informed decisions about their short term rental space and strategies.

III. How to Counter the Airbnbust

As the Airbnbust affects the rental industry, hosts can use several strategies to stay competitive in the market. Below are some ways to counter the Airbnbust:

A. Use Market Research to Identify the Right Properties

To combat the Airbnbust, hosts need to focus on identifying the right properties. Here are some tips on how to do it:

Consider Local Demand

Hosts must consider the local demand when choosing a property. By studying the market trends and demand patterns, hosts can identify the right properties to target.

Monitor Competitors

Monitoring the competition is crucial to staying ahead of the Airbnbust. Hosts must keep track of their competitors, their pricing strategies, and their occupancy rates.

Use Pacing Data to Optimize Pricing and Availability

Hosts must analyze pacing data to adjust their pricing and availability strategy. By monitoring booking pace, hosts can optimize pricing to ensure they are not losing bookings to competitors.

B. Create a Unique and Memorable Guest Experience

To remain competitive during the Airbnbust, hosts must create a unique and memorable guest experience. Here are some strategies to achieve this:

Focus on Design and Amenities

Hosts must ensure their properties stand out by offering unique designs and amenities that cater to guests’ needs. By creating a space that feels like a home away from home, guests are more likely to choose the property for future stays.

Leverage Social Media to Build a Brand

Social media is a powerful tool to build a brand and attract guests. By creating an online presence, hosts can showcase their unique properties, engage with guests, and increase their booking rates.

Participate in Local Events and Activities

Hosts can create memorable experiences for their guests by participating in local events and activities. This could include offering guided tours or suggesting local restaurants, bars, and attractions.

C. Diversify Your Rental Strategy

Diversifying a rental strategy can help hosts stay competitive in the Airbnbust. Here are some ways to do this:

Consider Long-term Rentals

Hosts can supplement their short-term rental income by considering long-term rentals. By offering longer rental periods, hosts can guarantee consistent rental income and reduce the risk of empty nights and calendars during low seasons.

List on Multiple Platforms

Listing on multiple platforms can help hosts reach a broader audience and increase their bookings. By diversifying their platforms, hosts can also reduce their reliance on Airbnb and its policies.

Offer Additional Services

Offering additional services such as cleaning, transportation, and catering can help hosts differentiate themselves from competitors. This strategy can increase the perceived value of the rental property and improve guests’ overall experience.

Navigating the Airbnbust: Strategies for Hosts to Thrive in a Changing Market

In conclusion, the Airbnbust phenomenon has impacted on short term rental hosts across the globe in various ways. While Airbnb’s drive to increase supply has contributed to oversupply in some markets, others continue to experience growing demand. Hosts can counter the Airbnbust by using market research, creating unique guest experiences, and diversifying their rental strategies. By using pacing reports, hosts can understand the impact of Airbnbust on their short-term rental businesses, and make data-driven decisions to optimize pricing and availability. It is crucial for hosts to understand their local markets and monitor regional and local trends. Ultimately, by staying informed and adapting to changes, hosts can overcome the challenges of Airbnbust and continue to thrive on the platform.

FAQs about the Airbust

Is “Airbnbust: The Fall of Short-term Rentals” Real or Hype?

The answer to whether Airbnbust: The Fall of Short-term Rentals is real or hype is not clear cut. While there are reports of decreased occupancy rates and bookings per listing in certain oversaturated markets, other areas still experience robust demand. Additionally, while some short-term rental owners may struggle to compete with increased supply growth, others may find success through pricing strategies and adapting to increased competition.

Local governments have also stepped in to regulate short-term rental properties, impacting the market in various ways. Therefore, it’s important to assess the situation happening in specific cities and regions to determine the true impact of the Airbnbust on the short-term rental market.

So why are some hosts allegedly seeing fewer bookings?

Some hosts are allegedly seeing a drop in bookings due to increased competition and oversaturation of the market. With more listings available, guests have more options to choose from, and hosts may struggle to maintain the same level of demand they experienced in the past.

Additionally, some local governments have implemented regulations that may limit the number of short-term rental properties available in a given area, further contributing to the decrease in bookings for some hosts. However, it’s important to note that this phenomenon is not uniform across all markets, and some hosts may still be experiencing robust demand for their short-term rental properties.

How are hotels affected in comparison with Airbnb?

Hotels are expected to see a slow in demand in the second quarter of 2023, according to Amanda Hite, the STR president. While STR predicts a 0.1% decrease in hotel occupancy for the year, they expect the average daily rate (ADR) and revenue per available room (RevPAR) to increase by 2.1% and 3.7%, respectively. Additionally, Ryan Meliker, the president of Lodging Analytics Research & Consulting, expects a brief and mild economic recession in early 2023, but still predicts growth for the hotel industry. STR expects U.S. occupancy to improve to 65.3% for 2024, with ADR predicted to climb 3.8% and RevPAR expected to grow 6.6% next year.

Overall, it appears that the hotel industry is expected to experience a slowdown in demand in 2023, but still anticipate growth in ADR and RevPAR. Comparatively, the impact of the Airbnbust on the short-term rental market is expected to vary by region, with some areas seeing oversaturation and reduced occupancy rates for hosts, while others continue to experience robust demand.

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