Airbnb was once the darling of the tech world. Launched along a rash of startups that pledged to revolutionize how we lived, like Uber and Instacart, it promised the joys of traveling with the comforts of home.
But recent years have seen a backlash to the company, as guests have complained about snooping owners, absurd cleaning fees, and lists of restrictions and chores even a well-behaved teenager would balk at. Does it signal a shift in the industry though?
A viral tweet claimed that the “Airbnbust is upon us” after seeing some users in Airbnb Facebook groups complain about a drop in bookings.
Inside those groups, there does appear to be some palpable angst. Posts from the Airbnb Superhosts Club group, which boasts nearly 200,000 members, involve plenty of fretting over a decrease in bookings.
“Has anyone seen a huge decrease in bookings over the last 3 to 4 months? We went from at least 50% occupancy to literally 0% the last two months. I’m just curious if this is something only going on with my property or if other people are seeing similar things. I am in Palm Springs. Where are you located?” asked the thread that prompted the viral tweet.
The original poster wasn’t alone. People in the comments agreed.
“I’ve been on Vrbo and Airbnb for nearly 5 years now and this is the slowest October I have ever had. Even in 2020, I had bookings despite Covid. I did okay last month, but am incredulous that I have so few bookings thru the end of the year. I signed up for Price Labs’ trial 30 days to see if it would make a difference – so far, no difference,” wrote one.
“I’m also in Palm Springs and it’s our slowest year in the last 9. That said, we are still doing ok due to our low overhead. The market is definitely slowing, but locally managed homes with great reviews and amenities are still doing ok,” another added.
“I’m in Palm Desert!! Same here. Nothing for July-October. I thought it was just the season, but others In my area have had some bookings. They drastically decreased their prices though,” a commenter said.
Across the group in recent days, people have speculated about the decrease in bookings.
While people on Twitter have recently touted the resurgence of hotels, in the group, members looked for other scapegoats. “You all need to open your eyes and see what is going on here and abroad: huge inflation putting pressure on families budgets. First ones to be cut are often leisure and travel,” wrote one host.
In a statement to the Daily Dot, Airbnb spokesperson Aaron Swor said that the site was still seeing strong bookings for new listings.
“Amidst new economic pressures, more people are looking to leverage the space they have to earn extra income, and quickly, with new listings getting booked faster compared to a year ago and the typical Host in the U.S. earning $13,800 in 2021 —equivalent to over two months of pay for the median U.S. household. As we look to improve our product to make it easier to Host, we are proud that hosting remains an economic lifeline for so many,” Swor said.
Some have put the blame on an Airbnb algorithm update. Airbnb did not answer questions about whether its algorithm was putting emphasis on newer listings compared to long-term renters. All its statements to the Daily Dot, however, referenced an increase in new host bookings.
When asked about the emphasis on new bookings, Airbnb said that it only meant they were “seeing demand from guests.”
“It happened for us after the platform changes. We are literally next to a famous National park, but we don’t show up on the new categories. I have repeated the name of the National park multiple times in the listings. You can walk to the entrance of the best waterfalls from out place, but the platform shows competitor in the middle of town ten miles away – but not us,” someone wrote.
“Yes ever since AirBnB changed algorithms I’m very slow,” another said.
“Help me understand this algorithm! We have all unique waterfront properties in Maine. These new categories just aren’t making sense and are causing us a huge decline in our bookings!” one host wrote.
The problem seems to have been brewing in the group for months. A July 5 poll asked whether members were seeing a decrease in bookings. Fifty-one percent of respondents said they’d seen a decrease, while just 20% said they were seeing more bookings at this time than compared to last year.
Given that Airbnb hosts tend to pride themselves on their entrepreneurial streak, it’s not surprising that some are already listing classes on how to increase your bookings.
“Have you noticed your bookings are down? I’ve created a course that shows you how to make your short term rental stand out in an oversaturated market -you can learn more about it here,” a post in a group read.
Is Airbnb in a spiral? Are hotels the new Airbnb, as social media posters have claimed this year? Enough Airbnb hosts seem concerned that a shift is afoot.
