Slow bookings, concerns about economy affecting travel

Slow bookings, concerns about economy affecting travel

It appears a booking slow-down across most travel destinations is occurring. We have a cottage in Pinehurst, NC and are wishing to determine root cause for a fairly slow booking pace. We've only been on the market for two months. We're not sure if that's the cause and we need to cycle through all four seasons before evaluating, or if it's the current economy. Seeing opinions on both would be interesting. Thank you.    -Dan

4 Replies 4
Mike-And-Jane0
Level 10
England, United Kingdom

@Dan16803 I believe, in the UK and it might be the same in the USA, the slow bookings are down to

1) Many people moved from long term to short term rental after last Summer's staycation boom and the rules over LTR evictions being made even harder. Supply is up as a result

2) People forced to stay in the UK last year are now able to travel abroad again

3) Cost of living crisis is starting to worry people 

4) Significant cost increases may have caused some people to increase their prices just when they shouldn't due to all the above

and finally

5) Airbnb new categories/Summer release has been a disaster BUT we will only find out when their results for this summer come out if the new search concept has reduced bookings or just distributed them elsewhere.

The excellent insight is greatly appreciated! And I believe in your point, regarding the same factors in the USA and UK.

@Dan16803   Right around the same time your listing went live, Airbnb released a total overhaul of its Search system, and the consensus among most veteran hosts is that it's been a disaster. The new algorithm is set to deliberately misdirect guests away from their preferred destinations and push them toward "Categories" that are assigned by bots rather than by hosts. Many hosts have reported a drop-off in bookings since that release.

 

Another thing you might not be aware of is that new listings get a temporary boost in search results for the first few weeks after they go live. You may have benefited from a thumb on the scale to get your first few bookings, but it's normal to see a slow-down after that advantage expires. It's possible that the current pace of business will be your norm (though you rightly acknowledge that it takes a full year to see the patterns play out in full).

 

As for how the economy factors in, it's really hard to tell. Airbnb first launched in the middle of the Great Recession, and it seemed like the perfect product to match the needs of financially imperiled homeowners for a side income with the shrinking budgets of internet-savvy young travelers. Which is to say, when Airbnb was seen as an affordable alternative to hotels, it was brilliantly suited to a tanking economy. But Airbnb is not the same brand now as it was before; if anything, it's one of the villains in the housing-affordably crisis, the high room rates and service fees are driving away the new generation of travelers, and hotels are slowly getting better at competing with it on flexibility, price, and amenities. The travel industry is still largely booming, but it remains to be seen whether that's a temporary rollover effect from the pandemic slump or it has long-term resilience despite the woes of inflation.

 

I think a place like yours has the potential to do well in the worst of times; it's a natural draw for people whose budgets force them to forgo expensive long-distance trips and vacation closer to home, and who must rely on self-catering and home entertainment rather than going out to restaurants and theme parks. Some other types of listings, I don't see them doing as well.

 

 

Extremely valuable feedback and certainly concrete facts, to assist us in making decisions whether to hold and/or change to a corporate/long term rental offering. Thank you Andrew!