54 million euro business of daily rentals, only from AirBnb

2024-02-17 12:40:00, Ekonomi CNA

54 million euro business of daily rentals, only from AirBnb

Illustrative photo

The expansion of the daily rental sector, driven by the influx of foreign tourists, is significantly increasing the income of the owners of these apartments.

In total, the revenue generated for 2023 in Albania was around USD 53.8 million, according to AirDNA, which analyzes statistics for daily rental accommodation structures from the Airbnb platform.

Compared to the previous year, the income earned by these structures increased by 86%. Compared to 2019, the period before the pandemic, revenue from vacation homes on AirBnb increased 2.5 times.

In August 2023, which is estimated to be the best month for landlords, there were about 188.8 thousand nights of stays on AirBnb with an average price of $85.3/night.

According to AirDNA data, only for the month of August 2023, about 16.1 million USD have been earned from these structures. Compared to 2022, the income doubled.

The number of apartments and houses listed for daily rental on AirBnb for 2023 reached 167 thousand. Compared to a year ago, their number increased by 36%. While compared to 2019, the number of houses and apartments listed on AirBnb increased by 1.3 times.

The increase in listings has been driven by high demand for net-stays. According to AirDNA data, the demand for net-stays in 2023 increased by 59% more than 2022.

Real estate market experts estimate that among the main factors that favored the expansion of this market remains the increase in demand from foreign tourists visiting Albania.

"The main factor for increasing supply is high demand. In recent years, our country has made galloping steps in the development of tourism and this is giving the long-awaited results.

Since the hotel industry cannot cope with this high demand, tourists are turning to these accommodation units", Dritan Leka, from "Century 21 CPM", declared earlier.

In Albania, last year there were about 3.2 times more foreign tourists compared to the number of the local population. In 2023, according to INSTAT data, the number of your citizens who entered Albania was 10.2 million tourists.

Compared to the same period last year, the number of foreign tourists increased by 33%. The number of tourists peaked in August 2023, when the number of foreign visitors reached 2 million. Compared to August 2022, their number increased by 18%.

The cheaper prices that are offered in Albania than apartments for daily rent in the countries of the region and the European Union, are considered one of the main factors that has increased the demand of foreigners for accommodation in these structures, according to Stela Dham, from "Colliers International Albania".

But Mrs. Dhami predicts that after the legal changes for formalization, the owners of these structures will be forced to raise prices.

"They are more vulnerable to consumers and tourists, who mainly came to Albania oriented by the cheaper prices compared to other more developed tourism markets, like the ones around us.

Also, these structures accommodate families and group travelers very well, who want to be in the same environment.

I think that these structures now, which will be part of the declaration and payment of the source tax, may feel the pressure to increase the prices to cover this increased expense, but I think they have to", she claimed earlier for "Monitor". .

The average fee for a net stay for 2023 in Albania was USD 68.8 according to AirDNA data. Compared to the average daily rate in 2022, it increased by 18%./Monitor