Staycations are not in the companies business model
Amongst the many disruptions to the global economy, many companies have suddenly rose in value as their product directly benefits the current situation. Airbnb is not one of them.
In a recent article from Business Insider, they report that not only has Airbnb halted all new hires but it has actually stopped all advertising in a bid to survive through the current crisis.
What does this mean for you?
As we have mentioned in previous articles, using Airbnb as a benchmark for investment returns is never the best idea. With the prospect of local and national regulations coming into force, limiting the profile of the Airbnb host, we always advised that a canny investor should work off the normal long term rental return when making decisions.
If you are an Airbnb host, then things are undoubtedly tough for you at the moment and we would strongly advise you take advantage of the Polish Mortgage holiday offers currently available. There is more on this subject here.
Airbnb's strength in the market is down to it's name recognition and massive marketing budget but the concept of renting a room directly from the owner is still not a bad one. When this pandemic is over, Airbnb will be open or closed based on it's cash balance rather than any particular long term problem with it's business model.
Since Airbnb launched about 10 years ago, there have been may copycats and whilst none of them have the heft of the Airbnb brand, Booking.com certainly seems to have taken a large part of the market.
If Airbnb does fail, then rest assured there will be replacements. When the smoke settles we will be here to review the contenders, their strengths and weaknesses.