Is Airbnb Dying in 2024?

The well-known online marketplace for holiday rentals, Airbnb, has recently faced many difficulties. Due to this many business experts believe that the platform is going to die soon.

We all know how the COVID-19 pandemic has severely impacted the tourism sector. It also affects Airbnb as many renters now get hesitate to make reservations because of travel limitations.

Additionally, local laws and restrictions on short-term rentals have made it challenging for Airbnb hosts to operate in certain locations.

For some time, Airbnb is also facing tough competition from many other vacation rental sites. But the company is fighting continuously to make its future certain and to stop the false statements of dying.

Let’s discuss the fights and challenges Airbnb is facing in detail.

Challenges Facing by Airbnb for Its Survival

Since beginning in 2008, Airbnb has significantly impacted the tourism and hospitality sectors. The platform allows visitors to book unique, safe, comfortable as well as affordable accommodations.

However, the business has recently come across several challenges that have caused questions about its survival and death.

The COVID-19 Pandemic and Its Impact on Airbnb

As we all know, many businesses have closed recently because of the impact of the COVID-19 pandemic. It also became one of Airbnb’s greatest problems, leading to concerns about whether or not Airbnb is dying.

Global travel restrictions have caused a significant drop in bookings as many travelers preferred to stay at home.

Furthermore, the pandemic has imposed restrictions on short-term rentals in several locations, posing difficulties for hosts to operate the platform.

Continuous Increase in Competiton from Other Rental Websites

Many other huge platforms in the market like Bookings.com and VRBO are continuous competition for Airbnb. They are providing almost similar services but trying hard to gain more attractive visitors.

Due to this, Airbnb’s market share has been shrinking and reports of its dying soon are roaming. Though, the business is fighting to maintain its position as the leader in the holiday rental industry.

Local Restrictions and Policies on Short-Term Rentals

Many cities have placed limitations on short-term rentals to address concerns about noise, safety, housing availability, and cost.

Now cities also require hosts to acquire permits, pay taxes, and limit the annual rental days for their properties.

Short-term rentals have been banned in some areas, making it illegal for hosts to advertise their properties on Airbnb websites.

These local regulations and restrictions pose a challenge for Airbnb’s host to function in some areas, fueling concerns about its closure.

Increasing In Costs for Hosts

According to sources, hosts have reported that the cost of advertising on Airbnb has increased due to its rising popularity.

These expenditures cover Airbnb fees, as well as costs for maintenance, cleaning, and other expenditures.

What Are the Steps Taken by Airbnb to Overcome Its Challenges and Survival?

Despite facing challenges and questions about the future, Airbnb is continuously working to make sure it does not die.

1. Cost-Saving Measures for Hosts

To help its hosts in saving money, Airbnb has introduced several cost-saving measures, including:

Decrease In Fees of Hosts

Airbnb reduced its fees for hosts in reaction to the COVID-19 pandemic. The main aim behind this is to make it more affordable for hosts to advertise their properties on the website.

Smart Pricing

Using factors like demand, seasonality, and local events, Airbnb’s Smart Pricing tool assists hosts in setting fair rates.

Partnership Initiatives

To provide discounts on furnishings and other resources for hosts, Airbnb started collaborating with businesses like IKEA and Home Depot.

2. Trust and Safety Measures

While as a company, Airbnb has faced challenges related to safety and fraud in the past, it is not dying.

The company has implemented some measures to protect both hosts and guests, including:

Identity Verification

Visitors of Airbnb are required to confirm their names by submitting official identification documents and other personal data.

Reviews Of Both Hosts and Guests

Both hosts and guests can post reviews of their experience, which can assist other users in making knowledgeable booking choices. It also makes Airbnb get up to date with every deal and travelers’ satisfaction with the host and property.

Requiring Guarantees and Insurance

Airbnb now offers a Host guarantee and protection Insurance for the safety of guests or property damage.

Enhanced Cleaning Protocols

In response to the COVID-19 pandemic, Airbnb has improved its cleaning procedures and established several rules for hosts to follow.

3. Making Partnerships and Collaborations

Airbnb has collaborated with local governments, groups of advocates, and other parties to handle legal and regulatory issues, such as:

City Partnerships

Airbnb has partnered with many cities to help local law enforcement and prevent unauthorized listings.

Advocacy Groups

Airbnb has partnered with groups like the National Association for the Advancement of Colored People (NAACP). This step is taken to encourage diversity and inclusion on the site.

Legislative Efforts

Airbnb has collaborated with lawmakers in multiple states to develop a balance between host and guest needs and community requirements.

4. Increasing Sources of Revenue

To diversify its revenue sources and handle sustainability issues, Airbnb has increased its presence in new markets, such as:

Long-Term Rentals

Airbnb now moving in offering options for longer stays, such as monthly rentals and sublets.

It is because of the increase in the policies and restrictions of local governments in many cities on short-term rentals.

Online Experiences

With the help of Airbnb’s Online Experiences platform, hosts can provide visitors from all over the world with virtual experiences. It includes cooking classes and travel guides.

Sustainable Travel

Airbnb has started a new program known as “Airbnb.org”. This program aims to give refugees and victims of natural disasters access to free and temporary housing.

5. Collaborating with Additional Transport Services

Airbnb has collaborated with other travel companies, like airlines and car rental agencies, to give visitors an improved travel experience.

For example, Airbnb and Delta Air Lines have partnered to offer special packages including travel arrangements, lodging, and other services.

6. Continuous Expanding in New Markets

In both domestic and foreign marketplaces, this business keeps growing its market share.

For instance, Airbnb recently unveiled “Airbnb Luxe,” a brand-new platform providing upscale luxury accommodations in various locations around the globe.

Additionally, Airbnb has expanded into China through a collaboration with the regional tourism website Xiaozhu.

December 2020 was a huge success for Airbnb’s IPO. As the stock price of the business was rising sharply on the first day of trading.

This shows that investors still have confidence in the business’s future possibilities.

Additionally, as of March 2023, Airbnb is still a successful company with a market capitalization of over $80 billion. Therefore, there is no evidence to suggest that Airbnb is dying at this time.

Is Airbnb Really Dying?

We must say… No, Airbnb is not dying anytime soon. Despite the major hurdles the company still faces, Airbnb has managed to maintain its position.

It is a dominant force in the travel sector by being willing to change and grow in new situations. So, it is premature to suggest that Airbnb is Dying.

Conclusion

Although the company has encountered many difficulties in recent months which may lead to any business survival being uncertain.

But Airbnb has shown that it can change and grow in response to new and tough situations.

Airbnb has worked hard to ensure its continued existence and success. They have put trust and safety measures, reduced costs for hosts, expanded their revenue streams and collaborated with stakeholders.

Airbnb has faced many difficulties as a result of the COVID-19 pandemic. Still, the company has reached its goals by focusing on services in suburban and rural areas.

They are also collaborating with other travel agencies and promoting sustainable tourism methods. Due to innovation and technological investment, Airbnb is not dying.

The company is well-positioned to satisfy the needs of guests and hosts around the world.