Airbnb's revenue takes a hit 🥊

Your daily dose of the most intriguing news in the vacation rental investing world. Here's what's hot today:

• Airbnb's revenue takes a hit, sparking housing market concerns 🏠

• A woman turns her Airbnb rental into a six-figure side hustle 💰

• The 2023 Glampy Awards reveal the top glamping destinations in the U.S. 🏕️

• 🔥 Deal of the Day! 🔥: 3 bd | 2 ba | Gilboa, NY

Airbnb's Rocky Road: A Housing Market Roller Coaster? 🚨

The real estate market is a dynamic beast, always shifting and changing. One of the more recent disruptors has been the rise of Airbnb, a platform that has allowed homeowners to monetize their properties in new ways. However, recent data suggests that this golden goose may be losing its luster, with potential implications for the broader housing market.

According to data from AllTheRooms, Airbnb revenues have seen a near 50% drop in cities such as Phoenix, Arizona, and Austin, Texas, between May 2022 and May 2023. This trend isn't limited to these cities. Other areas like Sevierville, Tennessee, and San Antonio, Texas, have also experienced significant revenue declines.

Nick Gerli, CEO of Reventure Consulting, has been vocal about this downturn. He warns that this could lead to a wave of forced selling from Airbnb owners, particularly those who entered the market recently and are more financially vulnerable. This could, in turn, trigger a housing market crash in some cities, reminiscent of the 2008 crisis.

The numbers are indeed concerning. For instance, in Phoenix, the number of short-term rentals, estimated at 18,000, is more than double the number of for-sale listings, estimated at 8,000. In Sevierville, Airbnb listings are 10 times more than the number of homes listed for sales.

Gerli attributes this downturn to a post-pandemic decrease in travel demand, coupled with an increase in Airbnb supply. However, he also sees a silver lining. An Airbnb crash could rebalance the real estate market, providing fresh opportunities for new homebuyers and investors in 2023 and 2024.

While the situation is undoubtedly complex, it's crucial for real estate investors to stay informed and adapt to these market changes. After all, in the world of real estate, knowledge is power, and those who can navigate these shifts stand to benefit in the long run.

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Jamie Inlow: The Airbnb Mogul Next Door 🚀

Jamie Inlow's journey from managing a single Airbnb listing to running a multi-million dollar business is a testament to the power of resilience, ambition, and strategic decision-making. Starting with a $2,000 gift from her neighbor to furnish an apartment above a barn in Scottsville, Virginia, Inlow launched Be Still Getaways in 2019. Despite the initial success, she faced challenges in turning a significant profit, supplementing her income with a $50,000 per year job at the University of Virginia.

By 2021, Inlow managed 30 listings, generating $205,000 in revenue. However, profit margins remained slim due to the small size and relatively low cost of the rentals. The turning point came in the summer of 2022 when Be Still Getaways began adding larger, more luxurious vacation rentals to its portfolio. This move led to a significant increase in revenue, allowing Inlow to expand her team and focus solely on her business.

Today, Be Still Getaways manages 129 properties in Virginia, generating $2.28 million in revenue last year on Airbnb and rental platform Eviivo, with an additional $600,000 estimated on a third platform, Hostify. Inlow and her husband, who also joined the company, now draw a combined annual salary of $150,000 from the business.

Inlow attributes a large part of her success to her resilient and ambitious nature. She advises aspiring entrepreneurs to clearly define their product, standards, and hiring needs from the outset. She also emphasizes the importance of not compromising on contracts and understanding that there will always be other opportunities.

Inlow's story serves as a reminder that success often requires a combination of resilience, strategic decision-making, and a willingness to adapt and grow. It's a journey filled with challenges, but also immense rewards for those who dare to take the leap.

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Glamping: Where Luxury Meets the Wilderness 🌟

The allure of the great outdoors combined with the comfort of luxury accommodation has seen the popularity of glamping skyrocket. According to The Dyrt’s 2023 Camping Report, of the 80 million Americans who went camping last year, 1.7 million primarily went glamping. The trend shows no signs of slowing down, with a 10% increase in glampers from 2022 to 2023.

The 2023 Glampy Awards have recognized the top glamping destinations in the U.S., providing a unique blend of nature and comfort. The top spot was claimed by Space Cowboys in Texas, where a mirror space pod offers 360-degree views of the desert landscape. Desert Glamping Getaway in Arizona, with its hexagonal hideaways and healing services, took the second spot.

105 West Ranch in Colorado offers glamping 10,000 feet above sea level with breathtaking views of Pikes Peak, Beaver Creek Canyon, and the Arkansas River Valley. Smoky Mountain Mangalitsa in North Carolina combines glamping with a pig farm experience, while Huttopia Southern Maine offers a variety of wood and canvas tents in a mature forest setting.

Glamping Canyonlands in Utah, Grand Canyon Eco Retreat in Arizona, River Island Adventures in South Carolina, My Tiny Creekside Retreat in Washington, and Emberglow Outdoor Resort in North Carolina also made the top ten list. Each of these destinations offers a unique glamping experience, from off-grid living to waterfront A-frame cabins.

These destinations illustrate the diverse and innovative ways in which glamping has transformed the camping experience. Whether you're looking for a tranquil retreat or an adventurous getaway, these top glamping destinations offer something for everyone.

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🔥 Deal of the Day! 🔥

Address: 356-356 C Buel Rd, Gilboa, NY 12076

This three-bedroom home with a private swimming pond would make a great vacation rental for families or groups looking for a secluded and relaxing getaway in the Catskills.

Airdna data:

Estimated monthly payment: $2,400/month

Estimated monthly revenue: $3,800/month

Cashflow excludes additional operating expenses. Always confirm local regulations, HOAs and permits before purchasing a property.

See you tomorrow!