SEATTLE — A viral tweet claiming a significant 35.2% drop in Airbnb revenue in Seattle from May 2022 to May 2023 has been refuted by the company as inaccurate.
Airbnb sent KING 5 data showing revenue during that period did fall, but only by 6%.
The company also shared the following statement:
"The data is not consistent with our own data. As we said during our Q1 earnings, more guests are traveling on Airbnb than ever before, with Nights and Experiences Booked growing 19% in Q1 2023 compared to a year ago."
Despite the modest 6% dip, real estate agents who deal with clients that are either Airbnb hosts or are looking to get into hosting, have taken notice. Cori Allan is one of them.
"My clients are looking for properties where they can supplement their mortgage costs," Allan said. "When it first came out, I saw Airbnb as bridging this gap between people who are travelers and people who want to make more money and they live there.
Experiences on Airbnb vary, but a quick Google search pulls up countless stories for those thinking about getting into hosting. Allan likes her clients to go in with eyes wide open.
"Right now, we're seeing people making money in Airbnb. It's sunny. Everybody's happy. We can wear tank tops, but the number of people who are traveling in Seattle in February is not going to be nearly the same," she said. As a way to deal with slower business, Allan says she's seen some hosts change up how long they allow guests to stay at their properties.
"What I see is a shift with homeowners going from short-term rentals to medium-term rentals," Allan said. The latter involves stays between one to six months.
Mike Ginsberg is another real estate agent who has extensive knowledge of Airbnb hosting; he's one himself. Ginsberg says there's a lot of competition.
"There's just an oversaturation of people that have been purchasing properties. In order to negate that, they're just going to have to adjust by making your place nicer or more special, or lower the price," he said.
Ginsberg splits his time between Puerto Vallarta and Seattle. He says both cities are experiencing some of the same issues with regard to Airbnb (lower bookings, less revenue, etc.). He gives his clients a full picture when they decide to get involved with the platform.
"I tell buyers in both countries if you're wanting to invest, this is what you expect to have to happen. I'll tell them the pitfalls and the best case scenario," Ginsberg said. "For a lot of people, if they think they're going to buy something, Airbnb it, and make a lot of money in the short-term, that's just not the case. It's a long-term investment."
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