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Has anything fundamentally changed (in the long-term) about the short-term rental market? It's clear Airbnb would likely have a substantial drop in revenue, but

Has anything fundamentally changed (in the long-term) about the short-term rental market? It's clear Airbnb would likely have a substantial drop in revenue, but they only have to make it through the crisis. What will this mean for the short-term rental properties themselves? There could be a new supply of housing on the market, as much of it was speculatively picked up. It's true that you can earn more operating a unit as a short-term rental, however in aggregate only so many can do that before demand dries up or price competition undercuts the increased profitably when compared to a long term tenant.

kaesar14 7y ago
The short term affects the market. Apparently Airbnb spent a lot of money on an Olympics marketing partnership, that's down the toilet. They've taken out 2 separate 1 billion dollar loans, one at 12%, another at 8%, in the last month(?). With their budgets strapped, they'll have less money and wherewithal to fight the legal battles they need to win to stay operational in many major urban markets around the world. The situation is absolutely dire, and their survival through the crisis is not a sure prospect in the slightest.
ProAm 7y ago
They have enough cash to make it through the crisis but the loans they will need to use will significantly affect their IPO which they need to do soon for their investors. Most want a return in ~10 years and AirBNB has passed that marker, seeing another money losing Unicorn on the stock market isnt what people want especially after the COVID crash.
twblalock 7y ago
In the long term, I don't think much has changed. The question is whether AirBnB can survive until people revert to normal travel behavior. In the short term there is little to no travel, and in the medium term there will be social distancing for a long time and less travel than before.
ianmobbs 7y ago
I wonder how many short-term rental owners are unable to pay their mortgages without Airbnb revenue

kaesar14 7y ago

The short term affects the market. Apparently Airbnb spent a lot of money on an Olympics marketing partnership, that's down the toilet. They've taken out 2 separate 1 billion dollar loans, one at 12%, another at 8%, in the last month(?). With their budgets strapped, they'll have less money and wherewithal to fight the legal battles they need to win to stay operational in many major urban markets around the world. The situation is absolutely dire, and their survival through the crisis is not a sure prospect in the slightest.

ProAm 7y ago

They have enough cash to make it through the crisis but the loans they will need to use will significantly affect their IPO which they need to do soon for their investors. Most want a return in ~10 years and AirBNB has passed that marker, seeing another money losing Unicorn on the stock market isnt what people want especially after the COVID crash.

twblalock 7y ago

In the long term, I don't think much has changed. The question is whether AirBnB can survive until people revert to normal travel behavior. In the short term there is little to no travel, and in the medium term there will be social distancing for a long time and less travel than before.

ianmobbs 7y ago

I wonder how many short-term rental owners are unable to pay their mortgages without Airbnb revenue