3 Things to Know When Booking an Airbnb This Summer

Contradictory Forces

Despite an uncertain economic climate marked by high inflation and frequent layoffs, many Americans have still been showing an eager willingness to travel.

The Memorial Day holiday weekend already saw record-high air traffic, which is only expected to pick up as summer vacation travel gets underway. This demand is likely pent-up from 2020 and 2021, when pandemic-era restrictions made the prospect of travel unpleasant if not impossible.

This resurgence in enthusiasm has helped buoy the short-term rental industry, dominated by the likes of Vrbo (EXPE) and Airbnb (ABNB). While looming economic uncertainty might not be discouraging Americans from traveling this summer, it is changing the way they choose to do so.

Three Takeaways

New data from vacation rental industry analytics firm AirDNA highlights three key ways in which consumer habits are changing when it comes to booking Airbnbs.

1.    To start, travelers have been prioritizing cost-effective Airbnb units over pricier units. This shows that, while many may still want to travel, they are willing to forego luxuries in order to keep their trips within tighter budgets.

2.    AirDNA also suggests this preference for more affordable stays means that we can expect a longer summer travel season. Travelers may push vacations to August or even September to avoid paying peak season rates.

3.    Overall demand for Airbnb units is forecast to rise 10.4% on an annual basis, thanks to the continued enthusiasm to travel.

Cost-Effective Travel Tip?

Despite this increase in demand for Airbnb rentals, the average rate for a room has only increased by 2.1% year-over-year so far this year. That leaves the average rate to rent an Airbnb at $326. Of course, the average includes entire houses, mansions, and even spaceships listed for rent on the platform; there are plenty of rentals available for far cheaper.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS23062002