Are Millennials Propelling Airbnb's Revenue?
Photo courtesy of Airbnb.
Airbnb is outpacing hotel booking websites like Booking.com and Expedia thanks to its undeniable appeal to American millennial travelers, according to new data from ecommerce analytics firm Slice Intelligence.
Last week, the firm revealed that Airbnb's revenue jumped 89 percent in July 2016 compared to the same period last year, while other booking sites experienced an average growth of just 19 percent over that same period.
Interestingly, the research shows that nearly half of Airbnb customers over the past year (49 percent) fall between the ages of 18 and 34, compared to just 28 percent of those who booked through Marriott.com over the past 12 months.
Although the perception might be that younger travelers are more likely to procrastinate than their older counterparts, 38 percent of Airbnb guests booked at least 31 or more days ahead of their trip, compared to just 23 percent of guests booking through other hotel booking sites.
What's more, just 6 percent of Airbnb guests booked their rental the day of, while nearly one-quarter (24 percent) of other booking site users reserved their room the day of travel.
Perhaps the firm's most important finding, though, is that Airbnb guests paid less and stayed longer on average compared to hotel guests booking through an OTA. In fact, guests staying with Airbnb over the past year spent 26 percent less per night on accommodations compared to those who landed a hotel room through a booking site.
Slice Intelligence notes that Airbnb's average nightly price nationwide puts it on par with many budget hotel brands, but the longer average stay of Airbnb guests is what sets it apart and allows it to compete with higher-end properties.
More by Patrick Clarke
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