Bookings for Airbnbs in the United States are quickly rebounding after slumping due to the COVID-19 pandemic, a sign short-term rentals and the booking industry could experience a V-shaped recovery.
Airbnb bookings in the U.S. sharply dropped as the pandemic began to spread across the country, with many property owners seeing mass cancellations and losing their income typically generated through the service.
But booking data released this week by AllTheRooms Analytics, which tracks short-term rental and Airbnb data and analytics, showed booking rates for properties listed on the service are sharply accelerating. That trend coincides with some states beginning to reopen over the pandemic.
Airbnb 90-day occupancy rates for the US, or the percentage of nights that properties listed on the service are booked over the next 90 days, hit almost 17.5% on May 8, according to AllTheRooms Analytics. That's a gain of 7% from the previous week, compared to a gain of only 4% one week earlier.
The analytics service noted that Airbnb markets are recovering fastest in states where officials are beginning to lift restrictions implemented due to the pandemic. The 90 day occupancy rate for Texas Airbnbs increased by almost 10% over a week period, while Georgia saw an 8.3% increase and Arizona experienced a 7.8% jump.
However, Airbnb occupancy rates are still down by 38% compared to this time last year.
"The rebound towards 2019 levels of bookings is accelerating, which obviously bodes well for Airbnb – we could be heading back to those levels sooner than we initially thought," Joseph DiTomaso, CEO of AllTheRooms Analytics, says in prepared remarks.
The hospitality industry, including booking services, has been hit hard by the restrictions placed to try and combat the spread of COVID-19. Americans are encouraged to stay home and not gather together in public spaces.
Booking Holdings Inc.'s stock is down 30% from the start of the year according to Monday's release, and Expedia Group's is down by nearly 36%.
"If this is a sign of what's to come for accommodation bookings as we exit these lockdowns, the fact that OTAs such as Expedia and Booking have missed out on the equity market rebound might not entirely make sense," DiTomaso said.
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Jacqueline Thomsen
Jacqueline Thomsen, based in Washington, is a reporter covering D.C. federal courts and the legal side of politics. Contact her at [email protected] and follow her on Twitter @jacq_thomsen.
