Airbnb’s popularity is driven by listings that are affordable and convenient. Recent studies have supported this conclusion by simultaneously affirming that affordability and convenience are the two words that appeal most to today's frequent travelers and renters. Airbnb is growing rapidly because demand is skyrocketing. In suburbs all across the country and even more so in bedroom, commuter suburbs such as my hometown of Montclair, NJ--local demand exists and supply is limited.
Airbnb reservation prices are often lower than local rates of "traditional" hotels because these hotels are obligated and instructed to boost demand at any cost. (sometimes in an effort to please shareholders) Therefore, this price gauging opens the door for Airbnb to exist and thrive. Airbnb allows for supply and demand to set prices because the company holds no physical real estate. Although there is growing competition on Airbnb in urban areas, hosts living in the suburbs outside these major markets are getting more than their fair share of the growing pie.
Suburban hosts give the platform much variety. The platform is primed to give their listings maximum exposure with built-in algorithms that boost and maintain significant traffic to their site in every location.
Here are 4 major reasons why Airbnb is becoming so popular in suburbia USA:
Since the company holds no actual real estate inventory, it acts as both a facilitator and mediator in the process of renting out residential accommodations while at the same time filling these available listings with renters at a breakneck pace.
Airbnb's platform supports all types of listings, such as houses, condos, apartments, castles, houseboats, tree houses, barns, mansions, caves (caves!), etc – in any given community, all around the globe. In the past few years, travelers had once felt comfortable staying in branded hotel chains. But not anymore. Studies show that travelers are wanting out. They don't want to continue to stay in rooms that provide them bland, square boxes coupled with unpredictable service and amenities. This shift in traveler preference is why Airbnb continues to be so successful. Travelers don't want more of the same. They crave variety, affordability and convenience.
If hosts enjoy making connections with people from all around the world, Airbnb is your best bet. But it's also the best bet if a host prefers taking a more passive, behind the scenes approach. The platform is well positioned to accommodate all types of real estate owners--whether the person is more hands on or not.
Hotels still occupy a large chunk of the lodging industry--usually found clustered around cities that have a higher demand for tourist and business travelers. Zooming out a mile or two, lodging options become fewer and fewer--thus forcing limited hotel options to skyrocket prices in an attempt to make up for lack of demand (and hence, supply). Airbnb is proving over and over again that travelers prefer a better price and location and will more times than not look away from staying at "traditional" hotels in downtown urban centers and travel an extra mile or two for a more pleasurable stay.
At Hello Suburbia, we help you get your listing onto the Airbnb platform. Let us show you how you will make (more) money, today!