In 2009, Airbnb generated $850,000 (approximately £692,410), in 2022 they generated $8.4 billion (around £6.8 billion). And in 2007, they didn’t even exit! It is safe to say that the world of Serviced Accommodation is in its infancy, but how did it get here?
Hotels: The Inspiration
Serviced accommodation is often compared to hotels which have been around for literally hundreds of years [History of Hotels]. As reported by the UK government, the hospitality sector is worth £40.4 billion [Hospitality Report], hotels are a huge part of this contribution. Before, if you needed a place to stay while away on holidays or for work, a hotel was often the perfect solution, comfortable beds, room service, amenities, breakfast, everything you could possibly need. But today, it is not the only option!
Serviced Accommodation: The Alternative
When reading about the start of Airbnb you will often hear the story from 2007 of the three founders, a spare room, and an air mattress, an unglamorous start to a brilliant idea. This turned into AirBed & Breakfast and thus the unofficial start of the SA industry. The company started in 2008 and in 2009 they had 2500 listings (over 7 million today), they had built a platform where anyone could offer out their home for other guests to stay in on a nightly basis. But what makes this anymore desirable than staying in a hotel? Here are the reasons:
- Much more space, hotels offer you a room, serviced accomodation offers you a house
- Better and more amentities, access to a kitchen can be an enticing factor for some
- More value for your money, often times SA is outright cheaper, and when it’s not you will be paying for the extra space!
- More personal experience, often you will interact with the host of the property and not just a hotel booking system
Conclusion
Airbnb, and the SA strategy has been around for less than 20 years, compared to the traditional buy-to-let investmet or property flipping, it is a baby. When people think about travelling, one of the ideas that comes to their head now is Airbnb, everyone knows what it is and there is plenty of room for it to grow with the SA industry. SA offers something different to hotels and now it is often the preferred choice for people on their travels.