May 5. Rate inflation isn’t just limited to traditional hotels, as Airbnb this week reported average rates for a booking during the first three months of this year hit their highest levels ever.
Yes, everyone is well aware that hotel stays and airfare aren’t cheap now, and they’re really going to take off heading into the summer. But Airbnb’s addition to inflation in the travel sector is another headwind for travelers looking for increasingly rare bargains.
The average daily rate for an Airbnb in the first quarter was $168 — a whopping 37% increase over the same time in 2019. The number shows just how popular Airbnb became during the pandemic, as it is only a 5% increase from the first quarter of 2021.
The good news is the rate surge will likely temper later this year as the broader travel industry returns to normal. But don’t expect prices to come crashing down, either.
The rate increase came during the same quarter that Airbnb reported 102.1 million room nights and experiences booked — the first time reservations surpassed the 100-million mark in company history. The company anticipates this year will also be Airbnb’s first full year of profitability in company history, Stephenson said.
Source: The Points Guy