Airbnb Homestays will ensure anyone can call them home
The pandemic has disrupted several sectors, including travel.
The disruption is noticeable in the travel industry as the travel equations are transformed. And the borders between travel, work and life begin to fade. Now with the dust settling it’s a little clearer in which direction it’s heading.
The omnipresent ‘Work at home’ has boosted flexibility in terms of where people live or how long they stay in one place. When you typically stay 28 days or more at one location, it certainly doesn’t qualify as a trip.
At this point, 26% of Airbnb homestays business doesn’t really travel but lives. And as a result, they can no longer categorize themselves as a travel agency.
Airbnb Homestays – Travel or Rental
The tendency to stay in one place for a long time is rethinking Airbnb’s activity. This is far from what the company had expected. People can now plan the winter months in Miami and Aspen, while they can spend the summer in New York, San Francisco, or Long Island. There are people who live this kind of life.
These are the ones with deep pockets and it is definitely not meant for the masses. You are considered part of an elite club when you enjoy winter at one location and spend the summer in the Alps. Now people can reduce their costs by renting their homes on Airbnb when they are absent.
The possibility offered by Airbnb is to replace local marketplaces for seasonal real estate. This could prove to be a source of passive income.
Renting private homes can offer more than a hotel can offer a long-term traveler. You get an environment with privacy with built-in social distancing.
Airbnb share increases
Airbnb bounces back for a strong summer after initial pandemic shock that has subsided 82% of its business. They have now come back with a vengeance over the past year and are in much better shape than most travel companies.
After its long-awaited IPO in December, they came back with a vengeance and their valuation surpassed the $ 100 billion mark, shattering expectations. The current share price is $ 134, although it climbed to $ 219 per share in February. The current share price reflects a decline of $ 10 from the initial peak.
This advantage is slowly fading as the rest of the world begins to find its place after the pandemic. And now is the time for Airbnb to turn things around and set the stage for people who love to travel and stay.
A Deloitte survey shows that the urge for hospitality is back. 80% of American travelers choose hotels. With schools back at full speed, it remains to be seen whether the flexibility extended by large companies will continue this year as well.
Working with cities
Airbnb reported a 35% increase in average nightly rates year after year in the first quarter of this year. This is mainly due to the popularity of large suburban houses for family reunions. This may soon stabilize as more affordable markets around the world open up to tourism and vaccinated travelers gain confidence to explore other markets.
But it could also cause a new wave of tensions between Airbnb and residents in the places where the company operates. ownership of a second home and withdraws the residential housing stock from the market.
Obstacles to legality in global capitals had been the wet blanket for Airbnb last year, as the pandemic crushed the travel industry into oblivion.
From now on Airbnb homestays have signed agreements in more than 100 countries, cities and municipalities. This includes the Scottish Tourism Alliance and Travel Portland – all with the intention of increasing the number of visits.
Governments in fact tend to Airbnb because they need their support because tourism is a source of money for many regions. And looking at massive tourism deficits, it’s all the rage for them.
Governments regulate Airbnb homestays
There are two sides to a coin, governments are rethink their tourism management plans. But they also fear that the travel industry will need to correct unsustainable practices that existed before the pandemic.
The Irish Prime Minister, New York City Council, City of Paris and others have proposed to tighten restrictions that could affect Airbnb’s results. They are proposing to adopt a quota system for the number of online apartment rentals in their city.
But it could turn out to be a blessing in disguise as you might win over your enemies. Some of the drivers of the latest Airbnb homestay enhancements include new features that complement the compliance tool that highlights regulatory policies. And that could be useful because it relays the data to the cities.
Another bright spot is that people are looking beyond metropolitan centers – this trend started due to COVID-19 and increased social distancing conditions. Thus, the least visited places were highlighted. And now the goal is to visit flexible destinations that offer quirky and discreet accommodations like treehouses and yurts. People don’t visit the same hangouts on a regular basis, but prefer to go to newer places.
A long-term vision for remote work
A lot of Airbnb the success of host families in the future continuous remote work after the end of the pandemic. Airbnb goes beyond the traditional idea of leisure and business travel as synonymous with the future.
New features like flexible dates help users find availability in trendy homes on alternate dates. These are based on the extension of homework. Airbnb homestays is now focusing on relocation assistance.
This year, the company helped customers experience a new house in town before committing to it. To do this, they have partnered with corporate relocation firms in several cities across the United States and are offering discounts on home rentals.
So you might wonder if working from home isn’t working? It wouldn’t be long – within two or three years, companies that insist on physically working at a site – might not exist in the future. Soon young, energetic, digitally driven managers not constrained by legacy workplace restrictions will prompt companies to rethink their policies.
Conclusion on Airbnb homestays
Conversely, totally remote businesses will want to meet for key decision-making situations. This will define business trips where employees working remotely will be in the office for a week at a time during key financial planning season or otherwise.
Airbnb isn’t the only company to predict this, even the executive vice president of products and strategy for American Express Global Business Travel thinks the same.
Gone are the days of taking the next flight to a meeting. In their place is an opportunity for long stays. Ultimately, it will turn bullish: Companies won’t determine it, employees will.