As Tourism Demand Revives... Airbnb Prices Surge Sharply

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Hyunjung] As COVID-19 quarantine measures have eased and tourism demand has surged, Airbnb prices are soaring, Bloomberg reported on the 5th (local time).

The report cited Inside Airbnb, which analyzes Airbnb data, stating that the average nightly accommodation fee in London has risen by 25% compared to 2019. Popular areas among tourists, such as Westminster and Kensington and Chelsea, are among the most expensive for lodging. A house in Westminster reached $305 per night (approximately 398,700 KRW) as of May.

Although prices have skyrocketed, the number of accommodations has not recovered to pre-pandemic levels. In May, about 14,000 total properties were listed on London websites, which is only one-third of the peak in 2020.

The UK government is also considering measures to limit short-term rentals on portals like Airbnb, taking into account their impact on residents living in popular tourist destinations including London.

Housing Minister Stuart Andrew said, "Sites like Airbnb have helped revitalize the tourism industry across the United States, but we must ensure they do not displace residents from their communities," adding, "City councils are already taking steps to address related issues."

In New York, USA, the number of short-term rental homes like Airbnb has surged, making it difficult for actual residents to find housing.

Some market participants point out that Airbnb's business model makes it harder to find homes in cities popular with tourists. While Airbnb focuses on short-term rentals centered in cities, its competitor Vrbo places more emphasis on vacation homes.

In New York City, some restrictions on short-term rentals have been strengthened, requiring platforms like Airbnb to share hosting and listing data with the city when renting homes for less than 30 days.