Reshaping Online Rental Market Strategies in 2024

Profit margins are tighter, and many owners are adopting strategies such as longer stays and service diversification.

16/08/2024 - After Airbnb reported underwhelming performance (read more here), the online rental market is rethinking its strategies for 2024, particularly in the United States and Canada. Property improvements and service diversification are among the measures taken by managers and owners.

The profitability of rental property owners has shown significant variation due to economic factors and changing consumer preferences. A decrease in booking demand requires units to stand out to achieve above-average profitability.

In the United States, especially in larger cities, profitability dropped in 2024. The combination of a saturated market, with a 17% increase in new hosts, and decreased demand for short stays resulted in lower occupancy rates and average daily rates. Many owners are facing increased competition and need to invest more in property improvements to stand out (Rental Scale-Up).

In Canada, the situation is slightly better, especially in popular destinations like Montreal, Toronto, and Vancouver, where demand for short-term accommodations remains strong. However, economic challenges, such as rising interest rates and high living costs, have also negatively impacted host profitability. Profit margins are tighter, and many owners are adopting strategies such as longer stays and service diversification to compensate (Airbtics | Airbnb Analytics).

Owners are being encouraged to focus on the quality of their listings and the guest experience to improve visibility and occupancy rates, in line with Airbnb's new strategic guidelines. Learn more about TeamCHECKiN services that help optimize rental property performance.