Airbnb - additional information
Founded and headquarted in San Francisco in 2008, Airbnb is an accommodation platform which allows users to list, find and rent apartments for short-term vacation stays. The name ‘Airbnb’ was inspired by the air mattress the founders rented out in their apartment, due to the soaring demand for affordable accommodation in San Francisco. From that one air mattress the company has grown to have over two million listings for beds, rooms, apartments as well as a wealth of unusual accommodation options including tents and boats.
As of September 2015, the city with the most Airbnb units, which were actively being rented, was New York City with 22,876 active units. This was almost 10,000 units more than Airbnb's second largest market Los Angeles. The revenue of Airbnb generated in New York City had grown annually between 2010 to 2015, from a mere 13.3 million U.S. dollars to an estimated 451.4 million U.S. dollars. The growth of Airbnb in the city is expected to continue with revenue forecasted to reach 805 million U.S. dollars by 2018.
The benefits of renting accommodation through Airbnb in New York can be seen by the relative difference in average daily rate (ADR) when compared with hotels. In 2015, the ADR of Airbnb in New York was around 40 percent less than the ADR of hotels in the city, making it the market with the largest difference in ADR. The ADR difference in Los Angeles, Airbnb’s second largest market, was much less significant with the Airbnb ADR working out at 5.7 percent less than that of hotels. In fact, the ADR of hotels for the United States as a whole, was found to be 25 percent cheaper than that of Airbnb.