An Overview of Airbnb and the Hotel Sector in Canada: A Focus on Hosts with Multiple Units
The Hotel Association of Canada (HAC) has released a new study which demonstrates that commercial operators are growing exponentially, far outpacing actual home sharing activity. Alarmingly, only 17% of Airbnb’s total revenue in Canada is generated by true home sharing where the owner is present during the guest’s stay. The other approximately 80% comes from hosts renting entire home units where the owner is not present.
Furthermore, the study reveals that units are being rented in increasing frequency. In fact, 1-in-3 Airbnb units in Canada were rented for more than 90 days per year and this segment generated over 70% of total Airbnb revenues during a 12-month period. These statistics highlight one simple fact: there is far more commercial activity occurring than people might realize.
Key Study Findings:
- Only 17% of total Airbnb revenues in Canada is generated by true home sharing, where the owner is present during the guest’s stay. This means that in 2016/17, entire-home rentals comprised 83% of total Airbnb revenues in Canada.
- Approximately 7-in-every-10 units on the Airbnb distribution platform are entire-home rentals, with guests having complete and sole access of the entire unit during their stay.
- 1 in every 3 units in Canada is rented out for more than 90 days per year and generates 71% of total Airbnb revenues in the past 12-month period.
- Over the past 2 years, entire-home multi-unit hosts have increased at a much faster pace than single entire-home hosts, with revenues from this segment more than doubling from $71 million to $167 million – a 134% increase.
- These multi-unit hosts account for over 30% of all revenue generated on Airbnb in Canada.
- Canada’s Airbnb sector has the potential to contribute $85 million in consumer taxes and fees to the Canadian economy.