Subscribe to Entrepreneur for $5
Subscribe

The Airbnb Effect: How The Pandemic Is Driving This Travel Side Hustle

The pandemic has had a profound effect on the way people travel and work. More and more people are now choosing to rent out their homes through Airbnb to fight...

By
This story originally appeared on ValueWalk

The pandemic has had a profound effect on the way people travel and work. More and more people are now choosing to rent out their homes through Airbnb to fight the costs of rising inflation and make some extra money. For some, this has created the ultimate side hustle.

JESHOOTS-com / Pixabay - Valuewalk

Q4 2021 hedge fund letters, conferences and more

This is excellent news for Airbnb, as they have seen a significant increase in bookings over the past few months. However, new Airbnb hosts have been hard to come by with only 7% more active listings recorded in the fourth quarter of this year than at the same time last year, which is somewhat disappointing considering a 59% increase in overall bookings over the same period.

Huge Demand From Nomadic Workers

Remote work has been one of the rare benefits of the pandemic, and now nomadic workers are extending their stays for weeks, sometimes months at a time. According to Airbnb, the company saw an increase of 16% in stays over 28 days or longer compared to the same period in 2019.

A staggering statistic shows that one in every five nights booked on the Airbnb platform during Q3 was for a stay of 28 nights or longer.

This scenario helped Airbnb make over 55 million dollars in profit last quarter, suggesting the travel industry is finally bouncing back after two years of upheaval.

Side Hustle As An Airbnb Host

Airbnb hosts earned 12.8 billion dollars in Q3, which is an increase of 27% over 2019, and with the company struggling to add more new hosts to the platform, there is an opportunity for homeowners to make extra income by signing up to be an Airbnb Host.

"The typical US Host earned more than $8,000 from January through September 2021, which represents nearly an extra month and a half of pay for the median US household. New Airbnb Hosts have earned $6 billion since the pandemic began, and for listings that were first activated and booked in Q3 2021, 50 percent received a booking within three days of activation, and 75 percent received a booking within eight days," reports Airbnb in their recent newsletter.

New Host Signup Technology

With the rise of remote work, people can work and live anywhere in the world. To meet the demands of this new travel revolution, Airbnb updated their onboarding process to offer a ten-step process and their new AirCover protection plan.

Airbnb has also waived the $100 hosting fee for new hosts who complete their ten-step onboarding process.

The company understands that this is an excellent opportunity to expand its host base and is doing everything it can to make it as easy as possible for people to sign up. So if you have been thinking of becoming an Airbnb host, there has never been a better time.

Advice From Top New Hosts

Airbnb released a report that showcases the best new Airbnb hosts in the United States, and a few of them offered some advice to those considering becoming a new host.

Pat H, who is a top host in Hamden, CT, says, "in the many months since, being an Airbnb host has made our lives richer, and not just with extra income. We are grateful to be part of this worldwide community."

With travel restrictions loosening around the world and several countries like Switzerland and Ireland allowing visitors to enter without a pre-trip negative covid test, travel is about to explode worldwide.

A recent study by trip.com suggests that travel in 2022 is expected to rise 31.7%, which means there is a great opportunity for new Airbnb hosts to capitalize on this growth.

Stevie and Juani P, top new hosts in Grand Marais, MN, advise new hosts to "keep working at improving that experience. Some people look at hosting as passive income. I don't agree with that. I think to really be successful, you actively work at it."

Become A New Airbnb Host

Airbnb has put together an excellent marketing effort to entice new hosts to sign up. Their sign-up page estimates your projected monthly earning potential based on booking data for the last 12 months from your specific area.

While this estimated income amount is just that, an estimation, it provides a baseline or starting point for those looking to start a side hustle as an Airbnb host.

For areas with specific laws to prevent nightly rentals, hosts can capitalize on the popularity of working remotely and skirt those laws by renting for a minimum of 30 days. For example, homeowner Andrew Karpiak used the popularity of remote work to rent out his lakefront vacation home in rural British Columbia for a minimum of 30 days due to a local law that prevented him from renting it out nightly. Prior to the pandemic, there was very little interest in bookings for 30 night or extended stays.

The newsletter that showcases the top new hosts in each US state will inspire those interested in this travel side hustle. The Hosts' profiles include everything from city apartments to isolated farms, with a mix of 42 percent in rural locations and 48 percent in more urban regions.

Airbnb recorded five thousand check-ins between these Hosts altogether. The Hosts have a combined average rating of 4.9 out of 5, and 46 percent are women, while 12% are couples. It's no easy task to become the top new Host in a state, and prospective hosts can research these 50 top listings to prepare themselves for their own property.

It comes as no surprise that the top host in Hawaii has over 55 positive reviews since opening its doors in February 2021. Hawaii is a popular destination for remote workers and new hosts can capitalize on this opportunity by listing existing or second homes on the platform.

If you are looking for a way to make some extra money during these uncertain times, becoming an Airbnb host may be the perfect opportunity for you. The company is doing everything it can to make it easy for people to become hosts. With traveler demand increasing daily, this is an excellent opportunity to earn additional income using your current assets.

Entrepreneur Editors' Picks