How to make money in 2020 – Airbnb

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What's up guys? It's James here and in today's video I want to talk about why Airbnb is the best industry to be in during 2020. And I know that just after stating that it's going to sound really, really crazy to anyone who's even been slightly looking at Airbnb over the last couple months.

We've seen cancellations. We've seen Airbnb, you know, lay off a third of their staff. We've seen them raise a whole bunch of money. But still I firmly believe that Airbnb and specifically Airbnb management is the best business to start in 2020 and I'm going to explain why in this video.

I'm gonna explain why I think that there's a huge opportunity I'm also gonna talk about why I feel that Airbnb management and Airbnb is a really strong industry to be in, despite everything that's going on right now. And I want to just kind of break that all down in this video.

So to start out I want to identify and sort of address why I feel that Airbnb is Such a strong company to be in right now. Now, if you look at the world around you, there's tons of companies that are closing their doors for good. And arguably no industry has been hit harder than the tourism industry, the tourism sector, right.

And so you've got all these companies that are closing their doors, understandably, and you've got tourism companies who are being hit harder than anyone else. And yet, here is Airbnb and short term rentals. And you're seeing that the company is still surviving. And in fact, Airbnb actually saw over the last couple months, More Bookings in the US then in the same time period of 2019. So why is that? Well, when you think about it, if you really boil it down, there's a whole bunch of people now that are eager to start traveling again.

We've seen a huge rise in domestic travel and that's really where Airbnb is shifting to is domestic travel because people are ready to start traveling and they want to get out of their houses. They want to get a break from the monotony, have their five minute commute to work to just get downstairs and stay and live in their home.

They want to expand, but people aren't ready to start getting on international flights. And traveling internationally, people want to stay domestic. And you know, if you look at it, there's a huge population in the US. And it makes up a massive part of the consumers of club global travel. And now all of those consumers are staying and consuming their travel in the US in North America.

And so here we are as hosts in North America, and we're getting to capitalize on all the bookings, a bunch of Americans and North Americans that would have traditionally gone over to Europe, gone over to Asia, and been traveling and taking that money and spending it internationally. They're now spending that money domestically.

And so it's actually a really big advantage to us. And then we've got the overall industry that is, you know, really just in shaky waters we've got the tourism industry being in a really shaky space and you would speculate that any business in this industry would be crumbling and really struggling. But if you look at Airbnb management, the management fee business model that I talked about a lot on this channel, if you're new here, by the way, if you are new here, please subscribe to this channel so you can get updates.

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Getting back to where I started though this management fee model that I talked about a lot on this channel, you'll see that people in this specific business model, yes, their revenue dropped drastically when everything hit and there was a huge ban on travel. You know, that was a big impact.

However, we were able to survive with relative ease because we don't have a whole bunch of costs, our revenue convergently go down to zero, not that it did for a very long period of time, but it can virtually go down to zero and we can still just kind of get by Yeah, we might have living expenses like anyone would, but the business is gonna rebound back up.

And we're still gonna be able to carry on and operate as we normally would. Because again, our expenses aren't high. If you compare that to the other models of Airbnb, whether you're owning a property or you're doing rental arbitrage, the management fee, co hosting business model fairs a whole lot better in tough times. And that's why I think that's a really, really great business to start in 2020.

If you're just getting into business right now, then likely you're doing so with a mindset of, Hey, I don't want to lose money, I don't want to have something it's going to create even more risk for myself. And so if you want a business model that carries a whole bunch of upside that I'm going to talk about in a second here, but that doesn't carry a whole bunch of risk that you don't have to risk losing a whole bunch of money and having the business fall apart and fail in six months time. Then Airbnb management is a really great model for you.

I also want to address like I mentioned why I see there being such a big opportunity. I've addressed why I think there is very little risk. But why is there a huge opportunity that I see in Airbnb management specifically? Well, like I already mentioned, there's a whole bunch of US consumers of travel, people that are spending their travel dollars and typically in a normal environment, would be spending those dollars internationally going and traveling to foreign places, they are now spending that money domestically.

And you've got more anks with people to travel, wanting to get out and wanting to travel than ever before in history. And so there's a really strong argument to make that we're actually going to see a pretty huge boom in Airbnb bookings over the next whole month. And for the last couple months have been any indication of that, then we're in it for a really big a really big upswing, because like I mentioned, the last couple months, Airbnb actually saw More Bookings in the US than in the same time period of 2019.

Just think about that. We're experiencing a breakdown in travel like we've never seen before in history and Airbnb bookings. domestically in the US area bookings, bookings in the United States are up over last year. That just blew my mind when I saw that. And that's why I thought, oh my goodness, this is an incredible opportunity right now we have to be prepared.

Now, the other thing that I think is really worth noting is that we've got a whole bunch of property owners in the US who want to make additional income. We've got a whole bunch of people in the US in general who are going to start hosting if 2008 was any kind of an indication, we see that when the economy is doing worse, more hosts flocked to Airbnb, because people want to earn additional income.

Airbnb is probably the best way for anyone to earn additional income, as long as they've got any kind of spare space. And when those people flocked to the platform, they didn't really know what to do. They want some help. They want people to support them. And so by being an Airbnb management, we can possess those skills that are going to become even more valuable than ever over the next couple months.

So these are just my thoughts on why I think that Airbnb is a phenomenal business to get started in 2020. If you have other thoughts or if you have questions related to this, post them down in the comment section below, let me know I would love to hear about it. I for 1am really excited about what's going to come over the next six months here, and really how 2020 is going to go. I know a lot of people are pessimistic about what's going to happen in 2020.

But I for 1am actually really excited about what's to come. I think that this pandemic has made our businesses stronger. It showed us the advantages of being in a business model where you virtually can't lose money even when the worst case scenario happens. And it's showing us some strengths that we have.

And also just from another perspective, I think that Airbnb's recent layoffs are going to cause their business as a whole to really focus in and stop focusing on distractions and other kinds of auxiliary things that they were looking at and really focus on their core business. I think that's going to bring a whole lot of opportunities as well. So again, if you have any other questions and your thoughts Leave them in the comment section below.

If you got value from this video, please give it a quick like, please give it a thumbs up it really helps me to support the channel so I really appreciate that. And with that I will say goodbye and see you in the next video.