Is NOW The Best Time to Start an Airbnb Business?
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Are you curious about making money on Airbnb but doubtful whether it’s a good opportunity with the current situation? Watch this video to look at the data and see why now is the best time to start an Airbnb business.
You might assume with everything that’s been happening in the world in 2020 that Airbnb is doing poorly right now. But you might actually be surprised to take a look at the real stats and see what’s going on with Airbnb and what great opportunities are available for starting a business on Airbnb.
If we look back to when things were first starting to fall apart, Airbnb was really struggling. There were high layoffs in the company, international travel had come to a grinding halt, nearly all reservations were cancelled, and hosts were finding it difficult to fill their listings. Because of this, many hosts removed their listings off Airbnb in favor of long-term rentals for more stability.
But what happened afterwards was surprising. While international travel slowed down, people still wanted to take a vacation, they needed a break. Which is only natural because stress levels have been high due to the pandemic. But with international channels closed, the only other option was domestic tourism.
This is a trend we are seeing in many countries throughout the world. Let’s take the US for example. Every year, Americans are spending $144 billion in travel and tourism. That is a huge industry, but the majority of this money is spent abroad, on international travel and destinations.
Instead of tourism spending going down, what we’re seeing is a shift from international spending to domestic spending. Meaning that the huge travel and tourism industry is actually expanding domestically, creating so many more opportunities.
Because of this, if we look at the last couple months with Airbnb, they’ve actually surpassed the number of bookings they had the same time last year. And because of the number of properties who had come off of Airbnb in the previous months, competition is at an all-time low. We are seeing unprecedented levels of supply & demand making a unique opportunity to start and grow a profitable business on Airbnb and similar platforms.
Some of the hosts we work with are experiencing their highest grossing months with their properties, reaching nearly 100% occupancy, and filling with higher rates than normal due to this “perfect storm” of opportunity.
This isn’t something we’re only seeing in the US and Canada, either. In other areas of the world with large populations and high spending on tourism, we are seeing the same trends. And if you’re interested in starting an Airbnb business, but you don’t currently live in a market where it seems profitable, there are ways to manage Airbnb properties remotely too.
Now is the best time to capitalise on this opportunity and start managing an Airbnb property! There are many new and inexperienced hosts looking to offer their property on Airbnb, but they don’t have the skills needed to properly manage it, and they’re looking for experts and people who know what to do.
These trends we are seeing with domestic tourism and Airbnb demand are most likely to stay for the next 6-12 months, even 2 years before tapering off to normal levels. So the best time to get started is now!
If you want to take advantage of this amazing opportunity to start your business on Airbnb, and you want to learn the skills you need to succeed at managing Airbnb properties, and set you up with the necessary tools, check out the links above in the description to access more information and free training sessions!
What's up everyone? Its James here and in today's video I want to talk about whether or not right now at the tail end of 2020 is a good time or perhaps even the best time to start a business on Airbnb. Now depending on where you look, you might find some different stats and depending on if you've been keeping up with what's going on on Airbnb over the last number of months, you might, you know, sort of offhand think that Airbnb is probably doing really poorly in the tail end of 2020.
But you might be surprised to hear it what the actual stats are showing, we really look and dig into the data. Now. That's basically the question I want to address in this video is, is right now a good time to get started on Airbnb is the tail end of 2020 going to be an opportunistic time to get started on Airbnb. I have other videos on the channel that relate to how to get started on Airbnb.
And I've got a free training link down below if you're interested in learning how to get started managing other people's properties on Airbnb and earn a full time income on Airbnb without Having to buy or rent or furnish any properties at all. So if you want to learn more about the step by step on how to do that, we actually just recently put together a completely brand new training for this. And that's a totally free training. It's linked down below. So you can check that out as well.
Now, as far as the actual numbers, let's dig into it and look at how Airbnb has been doing over the last couple of months. It's no surprise that when all this craziness first started, and tourism kind of ground to a halt everywhere, Airbnb took a pretty big hit, they had to lay off a bunch of their staff bookings crawled to a really low, a really low point. And we really were looking pretty dire in the Airbnb space. What happened after that, though, is a little bit more surprising. What happened as Airbnb was struggling and hosts were having a challenging time filling up their listings is more and more people host started to leave the Airbnb platform in favor of longer term rentals.
So try to find people to fill up their places for six or 12 months at a time. No Expecting they'd be able to fill their place up with short term rentals anytime soon. And then as we all know, international travel got completely restricted. So Americans, Canadians, anyone, anywhere in the world, virtually just very, very challenging to travel internationally at this time. And so international tourism is really not happening that much. And so what is happening is domestic tourism. We're seeing this in all kinds of different pockets all around the world. There's a lot of countries people are not able to travel internationally, but they still want to do some kind of traveling, they want to be able to take a little bit of a holiday, a little bit of break. stress levels are high with a lot of people and a lot of places in the world right now.
So it's understandable that people still want to get away. Now. What that means is that there are different countries around the world, China being the biggest the US being the second biggest, that spend a lot of money on tourism every year. Each year, Americans spend about 140 $4 billion on travel and tourism. Pretty crazy 140 $4 billion being spent just by Americans spending it on tourism related expenses. Now, in a typical year, a lot of that is going to be international because a lot of the Americans that are spending on tourism are spending it abroad visiting other different countries make sense. In this particular year 2020. That's not really possible. What we're seeing is that a lot of Americans are spending that same money that they wouldn't be spending. So we're still getting a whole bunch of tourism spending happening, however, because it can't be spent on international travel very easily.
We're seeing Americans spending a lot of that money at home. And so for that reason, we're seeing domestic bookings spike up drastically. And what that's caused is that in recent months of 2020, we've seen that Airbnb bookings have actually surpassed the amount of bookings on the same period for 2019. So we're actually seeing year on year growth in overall Airbnb bookings in recent years in the US. Now we're seeing that in other pockets of the world as well with big populations. That spend a lot on tourism each year and are now restricted to spending that money domestically. So we're seeing that spike in demand. Now, the other thing that's quite interesting, quite cool and presents a really big opportunity for people like us is that because a lot of hosts are getting off of the platform early on when things are looking pretty dire for Airbnb, our supply of Airbnb s, in other words, the competition is an all time low.
So what we're seeing is that demand is at an all time high, and supply competition is at an all time low. Now doesn't take a genius to understand that creates a really perfect storm, where suddenly we're seeing you know, a lot of hosts having their best performing months ever on their properties, because they're able to get their place completely filled up like one soon that we work with her property filled up for 30 out of 31 days in July, and had it filled up at higher rates never on a single property she brought in over $16,000 just in the month of July alone. Now bear in mind That's a normal property. For all intents and purposes, that's a property that would typically bring in a lot less than that on long term rental even on short term rental, that was your best month ever. So you're seeing this huge huge boost in supply and our sorry, boosting demand and a huge reduction supply searching is really, really big opportunity emerging.
For people that are looking to start an Airbnb business. This is extremely advantageous, extremely opportunistic, because there's a lot of hosts out there that don't know how to capitalize on this. And so what we're seeing is that a lot of hosts are leaving a ton of money on the table. So there's a huge opportunity for us to learn the right skills like you can learn, like I mentioned in that free training down below, if it's something you're interested in, to really optimize that performance, and make sure that we're capturing all of that opportunity for property owners, it creates a huge value proposition for them. And a lot of brokers know that they're leaving money on the table and they want to work with someone who can help them to fix that.
Now, the other thing that's really cool is a lot of people are seeing this trend and stuff Trying to get back onto Airbnb. So we're getting people that are getting onto Airbnb for the first time ever, they're slowly starting to re enter the platform. And those people are totally inexperienced. They don't know what they're doing when it comes to hosting. And there's also a really big opportunity to really build a business quickly helping those people to get started and helping people who want to earn additional income on their properties, which a lot of people do because things are tight right now for a lot of people around the world. There's a huge opportunity to build your business helping those people as well. So I would say overall, that right now is probably the best time that we've seen in the last five to 10 years.
If you're looking to get started on Airbnb managing properties on Airbnb even hosting on Airbnb, it's pretty counterintuitive, and that's honestly one of the things that lends itself most of this opportunity. A big reason that this opportunity is lasting still is because a lot of people haven't identified it. As soon as people start to identify it. We're going to see a jump back up in the supply meaning more people are going to get into Arabic Be and so the supply of Airbnb is going to go up. Now what we are going to see is that steady growth in demand, we're likely not going to see a lot of international travel for the next six to 12 months at least. And so the demand for bookings, the demand for properties on Airbnb is going to stay relatively high in the countries that can support it. If you're in a small country, with a lot of domestic tourism that's really able to take place, then you're not going to be in really great shape.
And so if you're in one of those countries, you might want to consider managing properties remotely, somewhere like in the US for the time being, until things kind of even back out. If you're in a country like the United States, where there's a ton of domestic tourism happening. And that's actually going to be really advantageous. It's actually going to create like a perfect storm, it's going to make this this whole industry a lot better than normal over the next six to 12 months until international tourism starts to open back up, and then you're probably going to see a pretty big boost anyway then and then things are going to slowly start to taper off for the next two to three years. Towards back to normal.
Now Airbnb bookings in the US have always been really strong and so that normal level is still actually very good. But right now it's just going to be boosted even better for the time being. So if you are looking to get started managing properties on Airbnb or you're looking to get started on Airbnb in any in any capacity whatsoever really then I would recommend now is actually one of the best times possible to get started. Again if you want to learn more about that though the ins and outs of how to actually do that if you have no experience and how to do it without any hard costs, without any experience that sort of stuff, then just check out the link down below to that free training that I mentioned earlier. That's gonna walk you through everything step by step I'm going to show you exactly how I did it, give you some pointers and also give you some free tools that will help you to get started building the business longer term. So if that's something you're interested in, just check out the links in the description below.
If you're new to the channel here anything consider subscribing I post two new videos every single week talking about everything going on in the world of Airbnb, Airbnb management, and how to make an income managing property. on Airbnb or hosting your own place on Airbnb. So if you're interested in that type of content, then just click the little subscribe button in the bottom right hand corner there and you'll get notified when we post new videos twice every single week.
If you like this video and you got value from it, then just click that little like button as well. It does a huge favor to me, it helps me a lot with YouTube's algorithm. So if you just a quick second and quickly like like the video then that supports the channel a lot and helps me out a lot with my business. So I'd really appreciate if you just click the like button there as well. Until next time, I will see you soon and enjoy the free training and enjoy everything that we've got the opportunity that we're sitting on right now. Now is a really awesome time to be getting into Airbnb and getting interested in getting started with it. So congrats on being at the right place at the right time and I hope you have lots of success with it.