On average, a one percentage point increase in a country's inflation rate was associated with an almost four percentage point increase in the number of new hosts in that country for the second quarter of 2022 (vs. the same period in 2021),” according to Airbnb’s analysis.
Rising inflation worldwide, following the COVID-19 pandemic and even more so after the outbreak of war between Russia and Ukraine, has led many people around the world to seek new sources of income. Entering the short-term rental model is one of the most popular options currently available, as demonstrated by the growth of new hosts on the Airbnb platform, which increased by more than 70% in the second quarter of 2022.
“Amid a general increase in prices and the cost of living, becoming a host is proving to be a vital tool for earning extra income,” states a press release issued by the platform.
According to the document, the crisis is driving people to become hosts through Airbnb, as families seek to increase their income to make ends meet, citing the case of Spain where a third of hosts say they host to be able to pay for the increased cost of living, and almost half say that the additional income helps them make ends meet.
“While there are a number of factors that contribute to the growth of the host community, including seasonality, demand, and product initiatives, there is a strong correlation with rising inflation and the addition of new hosts to the platform.”.
He explains that in Spain, where inflation rose by 10.2% in June 2022, the number of new hosts grew by more than 70% in the second quarter of 2022, compared to the second quarter of 2021.
“Spanish data on the growth of new hosts reflects a global trend in Airbnb’s top destination in countries with the highest inflation growth worldwide. On average, a one percentage point increase in a country’s inflation rate was associated with an almost four percentage point increase in the number of new hosts in that country for the second quarter of 2022 (vs. the same period in 2021),” according to Airbnb’s analysis.
Events increase visitor arrivals
Airbnb argues that the increase in visitors occurs especially during major events that boost arrivals, and that a recent survey they conducted shows how Madrid is one of the best examples, as one in ten guests in 2021 said that the main reason for their stay was "to attend a special event".
“This year, the world of sports, music festivals, business fairs and local festivities have made a big comeback, and with them, a new opportunity has arisen for those who own a home in the places where these events are held.”.
The report indicates that a selection of 10 of the most relevant events or festivities in Spain shows that in the first half of 2022 the hosts of those locations earned an aggregate of almost 40 million euros, almost 40% more than in the same period of 2019 and for the same events.
“In Madrid, during Pride celebrations, hosts earned more than €8 million after welcoming over 56,000 guests that week, a 15% increase compared to 2019. As travel rebounded after a severe wave of COVID-19, Seville’s Holy Week in 2022 attracted nearly 20,000 guests through Airbnb, with hosts in the Andalusian capital earning €2.7 million. Barcelona also hosted its two internationally renowned music festivals (Sónar and Primavera Sound) again this year, allowing hosts to earn nearly €19 million and welcome almost 75,000 guests during the two events,” the analysis adds.
They note that these large events not only generate income for local hosts, but also help small businesses and the community at large to reap the economic benefits. According to the same survey, 85% of hosts in Madrid make recommendations in the neighborhood, helping guests discover the area where they are staying. Consequently, almost half of the total guest spending (excluding accommodation) takes place in the neighborhood where they stayed.
Source: Airbnb
