Can Airbnb Outperform a Potential Recession? | WSJ The Economics Of
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- Опубліковано 3 сер 2022
- Airbnb was formed during the 2008 financial crisis and evolved during the Covid-19 pandemic. WSJ’s Preetika Rana and Airbnb CEO Brian Chesky share insight into the home-sharing giant’s success and what the future might hold for the company.
Photo: Lucas Guilkey
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I dunno, Airbnb used to be cheaper than a hotel, but now that 80 a night rental with a 150 a night cleaning fee is getting out for hand
and when you say 'for' you mean 'of', right?
I agree. I am nit to keen on using Airbnb.
stay longer
Will take a hotel any time! Everything is working or taken care of, no cleaning fees, no cleaning that you have to do yourself, no need to cook, breakfast and dinner always available, no hidden fees, reception 24/7 and staff always there to help you immmediately! And booking is done within couple of mins. I always had great experiences with AirBnb but it was just too much hassle and I ended up too tired from living in a home and not in a ”always ready for you” spotless cleaned splace without having to deal with the owner’s abode quirks.
don't forget that you can cancel if necessary too
I used to be an Airbnb believer, but it just doesn’t make much sense anymore for most type of trips. It’s getting so expensive, it’s easier and often cheaper just to get a hotel.
Hosts got greedy, investment groups came in with their coup on the housing market and pushed out the family looking for their hard earned American picket fence docile. This video could have been summarized in a minute half.
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Airbnbs hosts have raised their pricing to the point that hotels make more sense many times - which hotels are typically cleaner and nicer anyway. I’m not sure how one controls that but it’s off putting. Not to mention the fear a host will randomly cancel you.
I work on the hotel industry but am also an Airbnb owner . If you think hotels are cleaner you.wouls often be mistaken. Rugs hide dirt and pillows and blankets are not washed a lot
This company is gonna have to face some challenges, prices equivalent to a hotel and restrictions by hosts. I mean I feel like I can’t even relax because I’m breaking a rule. If price is equal I rather stay at hotel with security, employees around the clock and closer to main tourist areas in most cities.
Only true in North America, prices are cheaper than hotels in Europe and APAC.
Also, many hosts take forever to reply where it’s taken me a week just to book something and wait 24hrs for each request. With a hotel you have your booking right away.
Hidden cameras everywhere too and can't depend on them being clean. So happy to stay in hotels now.
@@beetdiggingcougar This should motivate people to lose weight. If you're gonna be spied on at least look fab ;)
Please stay at a hotel… And feel free to break their rules…
“Tiny Home”. Please. It’s a dressed up double wide trailer, an RV, a kids tree house w upscale marketing run by hipsters leveraging green anxiety.
Wow! You viewed and summarized well some UA-cam videos posted by tiny home owners who were somewhat jaded by their experiences. What is the plausible relevance of those objections to spendings night or a week in a tiny home that is well located and has decent reviews? Everything you write might be true yet an Airbnb rental of a tiny home might be a superior option to a hotel or motel room (especially travellers with young children) and might also be an excellent investment for a property owner too.
@@paulinbrooklyn Of course a trailer can be a good investment. Or not.
I think it’s bad for local housing market, lot of investers moved in and capitalized on this and shot up housing prices while the local economy can barely afford any of this let alone the cost of goods nowadays… somethings got to give. Jmo
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very well covered!
Nicely explained.
Potential recession? We are in a recession by textbook definition.
Right!
Love airbnb
This earnings report came out yesterday. Did you even have time to do due diligence and then make a video on that time? This earnings seasons have had lots of hidden surprises.
Inspired, Make me look around and think "can this be a good or service?
I had a horrible AirBnb experience where this host made duplicate keys for all the condos he owned in San Diego. Had a family open the door on us at night and it was the wildest thing ever. Never again…
🤯
Wow! Thx for sharing your experience.
I care most about devastation of working class & any hopes for affordable housing by greed that snapped up 2nd & 3rd homes in misery of 2008.
Airbnb is one of the main reasons for our "housing shortage". It brought in investors who have snatched up properties in every major city, flipping them into temp rentals. If local governments work to oust Airbnb, it could reverse the trend of record property value and shortages. End the greed.
AirBnb made renting easy. But people with cash money have been buying houses as an investment since... forever.
@@TitusAzzurro yes but not at this rate, and not as many single family homes. Some wealthy individuals own hundreds of properties all dedicated to Airbnb, not long term rentals.
This.
Only private people should be allowed to rent on Airbnb, and the problem would be solved.
government shouldn't ban airbnb or tell a private owner to do something or what not to do to there property that is called comunism and is not fun
Shame on Airbnb and on the hosts for charging so much, almost as much as hotels.
Bruh it’s a house it’s better than a hotel , more space how is that a shame?
I agree. We are not using Airbnb as much as we used to.
Valuation is still steep. No way i'm buying this at a 70 billion market up. You'd have to be insane.
“…incredibly lean company” is right. They’ve outsourced the majority of their support team. It’s the worst I’ve ever experienced. The way AirBnb treats their Hosts is bad for business and I think it’s going to eventually show itself
It has already started showing.
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The costs to renters and local jurisdictions likely exceed the benefits to travelers and property owners.
Airbnb might, as claimed, suppress the growth of travel accommodation costs, but these costs are not a first-order problem for atomic families.
In Germany/nordic countries in Europe Airbnb is not anymore that much more convenient than an hotel. Better an hotel room on booking or expedia.
Wrong love airbnb
Potential recession? Even WSJ changing definition of recession.
I never had a bad air bnb experience, lol. I don't even think I have ever been to one below a certain rating though, it is interesting hearing comments about air bnb being bad. I wonder how many are actually real?
The downside is you've probably been recorded in one of those bnbs.
@@Chironex_Fleckeri I think most places have cameras including hotels, I do see cameras in air bnbs but I don't think there is any places of temporary residence that doesn't have a camera. Plus the highly rated air bnbs have not been weird experiences, and most of the owners have been pretty responsive.
I had my first horrible experience in Italy in June. After paying for a whole month, I had to leave two weeks in because I didn't feel safe. Checked into a hotel and took a train father south. The host was verbally and emotionally abusive with a personality disorder or two. Plus, she states on her profile she spoke English. She doesn't. She harassed me the whole time I was there with text messages. I was so traumatized. Writing for the first time publicly about it without getting triggered. Now I'm in a place and feel so safe. I just got unlucky I suppose, because I had never experienced anything like it before. I thank God I had the money to leave!
@@msjannd4 Please don't make the housing / homless crisis worse than it already is, don't ever support Airbnb again.
In order for Airbnb to be successful all these hosts need to get rid of their dumb fees. Airbnb needs to take more control of what hosts can charge so that the costs are lower and much more flexible for the customers. That’s why Airbnb was good when prices were low and reasonable.
Absolutely agreed! It has become harder to use it because the fees have exorbitant. 😖
Just charge the price u want don’t add stupid fees, ur paying for a house with several rooms kitchen etc backyard etc.. this is not a hotel and that’s why prices are high on them it cost a lot for a family to leave their home while u stay in it so it needs to be profitable.. if u don’t like it go to a hotel
@@anarchy1090 Exactly Felix ! Most Airbnbs offer way more for the money than a hotel. But it seems no matter how good of a deal people complain and ask for discounts.
I tell them they can get a flop house hotel with bathroom and shower son the hall for more than my luxury one bedroom with kitchen,home theatre,reclining couch ,washer dryer ,in a trendy neighborhood 😆
We booked 6 one month rentals in 2022. Seems strange to me that there are not more bookings.
They've really jacked up the fees!
the economic of AirBNB = cleaning fee.. XD
Potential recession?? Lol we are currently in a recession
You can't enter a recession if you keep changing the definition of what a recession means
'Hundreds of dollars a night' No thank you.. many airbnb's are pricing themselves above good hotels. It makes long stays impossible and short stays not worth it..
Its like the half pints at bars. Making the big beers more expensive
I enjoy renting places in AirBnB superhost. As long as host are responsible and on top of things, there should not be any issue (major/minor).
👌👌👌
It would be cool if AirBnB hosts didn't cancel reservations in order to book the space at a higher rate to someone else. That just happened to my brother when he came to visit Vancouver for a weekend, the host cancelled on him last minute and there was no other affordable option left due to so many events happening the same weekend, so he ended up vowing to never use AirBnB again and booked a hotel instead.
I feel lucky that I haven't had that happen to me yet! But I am definitely wary now - and with AirBnB's charging just as much as hotels in some places, makes you think twice about using their service. I used AirBnB in off-season traveling in Italy which was nice but thinking about when it's high season for tourists, I feel like people will get cancelled more often.
Shawna, you are right there has been a huge problem with host cancellations and Airbnb has put a huge fine (really huge) and probably end to much of that challenge with cancellations by hosts. As a community leader with airbnb myself and superhost over 5 yrs. I think this will help many people like you and your brother with the fears of cancellations. I've never cancelled a guest in 5 yrs. But had several guests cancel. And they don't think twice about it. So I didn't know how big the problem had become until the new changes have just been brought to us all. I think you will be able to rest assured now, unless its a major unavoidable problem like the A/C crashing, a major leak or such there will be very few cancellations by hosts. all the best to you.
No. Because room rates will go down in a recession and so will the number of stays. Airbnb will be hit very badly just like any hotel/online travel agent
I hope so as they charge so much, so many admin fees, cleaning fees, even when the place is lit clean, etc..
My next door neighbor in my condo decided to rent out his unit and five other units in the small building. Not once in a while, every night, not a couple people, 8-10 in a 2-bedroom unit. The kicker? It's illegal in my city without a special license.
Air bnb does not check if they are licensed. I jump through a million hoops to complain, they said they cannot do anything.
Basically turning residential housing into a rental car, no accountability, no responsibility.
Can’t beat the security of a hotel, a pool… plus the price is the same !!! Airbnb will be gone is 5 years
Airbnb does affect long term market
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P.S. If you have any questions about starting & growing your Airbnb business lmk.
I now book hotel. Airbnb got expensive now
I came here to Virginia Beach for a week first I looked airbnb. After seeing the crazy prices I decided to rent hotel room now I'm in hotel room and I'm happy Airbnb is a trash
Airbnb, ain't cheap tons of fees....hotels are cheaper.
How sway?!
You think its cheap until you get to checkout page.
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During the pandemic I traveled up and down the west coast where I stayed in each city for a month each all on airbnb
Hotels are great for one night stays or traveling as a couple but Airbnbs are ideal for bigger groups and workations
I just posted a video analyzing AirbnB's stock, would love your opinion on the company
Does Airbnb have a solution for the listings that charge crazy fees. They only charge $100 a night to seem like a good deal, but after the fees its like $400 a night.
They can charge whatever fees they want, you can choose another option
is the recession in the room with you right now Aug 22 2022 WSJ
I don’t know man, I agree with him. People are going to keep on traveling, whether a recession happens or not. Airbnb, airlines and hotels will be bullish next year.
Who wrote this headline? We are in a recession.
AirBNB is part of the pseudo sharing economy. What sets it apart from the traditional hotel market is that it has shifted the fixed costs of the business onto the hosts.
As an example traditional taxi companies owned and maintained its cars which costs a lot of money. Uber shifted the fixed cost onto car owners which makes it a more efficient and profitable company that has put taxi companies out of business.
Its not necessarily more efficient. The main driver of their companies model appeared to be low quality. Either by underpaying drivers or hiring lower quality ones
I never stay in a hotel anymore if I can avoid it. AirBnB offers kitchens, a quiet location, a beautiful spot that’s private, etc.
great, thanks for your contribution to the housing / homeless crisis 🤨
Exactly. Hotels are corporate scams. Dirty sheets almost every other time I used to check in. Hidden fees most don’t even know until their checkout receipt.
@@techcafe0 yea Because Airbnb is the cause of Why people are homeless in America
excelent video
But why the CEO sounds so sassy 💅💃(I'm here for it)
Vacasa is better. But they work with Arbnb
airbnb customer service is another potential risk. its probably one of the few companies where its dissatisfaction rate increased after speaking with a customer service. Especially regarding to sensitive issues, like racism
Airbnb the gentrification machine.
AirBnb during the pandemic was terrible!!! So many listings that wasnt active
The nail in the coffin was
“Must take out trash to designated site, make sure dishwater and dishes are washed and dried, and houseboy picked up”
Yet they still slap a $95 cleaning fee.
At this point your better off at a hotel!
Ive been a host since 2015, zero party incedence. It blown out of porporcion.
It is not blown out of proportion. Its nice to hear that you as a host are on top of yours.
@@floridaswampman7648 It is, they still talking about that one Halloween party many years ago.
I think it is the greatest idea and safety where most hotel fell to deliver on privacy and safety for tourists who are professional on vacation but not professional tourists
How do you know an Airbnb host is not crazy?
Hopefully not , property values are out of control Airbnb isn't helping.
Nah, hotels are still better also AirBNB really skewed housing problems
From my personal experience AIRBNB customer support doas not work at all. If you host you have no possibility to call them. It just do not work and if you are using services someone pick you phone but tell you no with even worse english than my. I can not imagine what would wappenend in case of any disaster.
Airbnb has helped drive up rents like crazy
Can Airbnb
Airbnb has been golden for me when coming back from overseas in a temporary displacement between my next destination and coming back to the mainland for tax purposes. I plan to start getting into it since I use it so much for my business moves.
Taiwan needs more anti-ship and anti-air weapons. If they can make it impossible for large ships to approach the island, they might have a chance. Defenses will most likely be hit with air strike, so make it impossible for air to approach the island too.
Airbnb is no longer the -Cheap- option 🚨
The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse is near.
Collapse is generous
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Rented an AirBNB once. A municipal zoning officer showed up to tell us it was an illegal rental.
Never again.
There was one in my area recently which was being rented out with no heat, running water, or electricity. Zoning finally condemned the property and it was removed from airbnb listing. Unbelievable
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Stop calling it a "Potential" recession.
It's a recssion.
Yep. That's why the US is experiencing deflation and high unemployment.
Oh wait...
"You will own nothing and be happy" Airbnb fit well for this.
Airbnb is the best when wanting to live abroad for an extended amount of time
I had a bad Airbnb experience also. Also, checking out early of a long term stay (even with the host’s approval) caused me to lose our Airbnb didn’t return the fees. Hotels are better
Just for example, 95% of rentals in Montréal are illegal.
But sure they can go on about their innovations
Amazing a website company such air bnb, Uber, etc, scalping a percentage of rental fees for just designing a website is supposedly 'worth' billions. These supercomputer corporate owned conglomerates such as zillow, redfin, Blackrocks, Blackstone, etc.,should be banned from the real estate market.
They stink!
Nothing these two people say gives any confidence that this company will be a good long term investment.
I'd rather stay at a hotel than pay for someone's mortgage. AirBnB is making the housing crisis worse.
Gosh, she is beautiful 💐
the answer was no btw
Hotels are better by far
People, should be able to do what they want with their own properties. It's there right.
can't airbnb, and wsj, do anything else except dragging you to recession?
“Short-term Rental” are weasel words for TOURIST ACCOMMODATIONS. Airbnbs are HOTELS and should be licensed & regulated, and subject to the same tax obligations, zoning regulations and hotel industry standards. Airbnbs deplete housing stock, drive up housing costs, and destroy communities. Please do not support Airbnb, because it’s playing a devastating role in the current housing crisis by reducing supply, robbing renters of places to live, increasing prices and ruining communities. We're in the midst of an extreme housing crisis, where long-term tenants are being mercilessly evicted from their HOMES. Airbnbs do more harm than good, socially and economically.
Many cities do treat Airbnb very similar to hotels in terms of zoning, service tax, etc
@@lc9991x really, where, what cities zone for Airbnbs? No city in my country, Canada, does this, the Airbnbs are popping up like weeds everywhere, contributing to housing shortages and astronomical rents.
May I politely ask where you live? Asking for a friend… 🤣🤣
💯 % agree
This a millennials and Gen Z company, boomers don’t understand this lifestyle. It’s definitely going to be around for a while.
My experience with airbnb was so bad that I want to use anyone other than airbnb.
I’ll take a hotel. It’s cheaper and there’s no fees for random things you’d get at a hotel with no questions asked.
Try to take a pet to a hotel and see what happens. Not only will fees apply but you get kicked out without an apology. And don’t get me started on hotel hidden “resort fees” and “parking fees”
4:10 how is that an Airbnb problem at all? It’s a law problem. Just stop people from being allowed to have guns in the first place.
Started good, then you went off the rails 😂
Theres an Air BnB in our Neighborhood and the police are there every other night its a nonstop party house thats bringing crime to our neighborhood and dropping our home values. Pray one of these dont start in your neighborhood.
Wouldn't dropping home values be a good thing as it allows lower income people to buy real estate?
@@liechter maybe for you.
@@liechter lol it's funny how some people are like "airbnb are bad! they make properties more expensive" while there's the completely opposite end of the spectrum that says "airbnb are bad! they make property values drop!".
AirBnB is NOT affordable
Not all hotels are the same price. Airbnb is affortable for every weekly business trip I’ve taken. Research
Here's the problem. An apartment is $2k/month. You can make $100 renting it on a daily basis. Now the apartmet is $3k/month. Do you understand how this works?
So before AirBNB what was the cause of rent being raised ?
Nope, Americans are doing day trips can't afford gas and utilities!
Airbnbedbugs, cochroaches and mice or rats. Videos on let's be honest about airbnb show the reality. I rather pay too not have things moving on their own inside the place I'm sleeping. I don't do bugs or wildlife inside a space.
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Lets hop not, hotels are better and employ people