Airbnb just sent a massive warning into the economy here in 2024 they just reported a big earnings Miss and signaled a big slowdown in US Travel coming over the next couple months this is a concerning sign for the state of the economy everyone the recession warnings are piling up and in the case of Airbnb this earnings Miss caused their stock price to Collapse by 14% and their stock is actually now down by almost 25% % since they ipoed is As Americans run out of money in this economy and as the recessionary forces build one of
the first things to go is you know that trip in an Airbnb that vacation people are cutting back on that of course this is something I've been predicting on this channel for the last one to two years in Airbnb decline a year ago I had a tweet go viral that got over 30 million views talking about how the Airbnb collapse had started a lot of people said that I was wrong however this earnings report from Airbnb conf conf irms that this slowdown in the short-term rental industry is continuing and I think this is something that
could have a big impact on the housing market everyone is a lot of people bought up houses over the last 3 or 4 years with the intention to Airbnb them and now that their uh revenu is declining and the number of guest is declining a lot of these Airbnb operators are losing money and they're being forced to sell their properties onto the US housing market often at a loss this is something we're seeing in Florida espe especially I go down to Florida I film videos there I see tons of listings from Airbnb owners and we're
seeing the inventory levels there just absolutely Skyrocket but first I want to go into an article here from CNBC that's reporting on what's going on with Airbnb right now you know they show in the headline the 14% stock price plunge and they quote the CEO of Airbnb Brian chesky who's basically saying that there's seeing signs of a Slowdown in US demand specifically that's a key point us demand there's seeing signs of a Slowdown shorter booking lead times less demand growth less Revenue growth now overall Airbnb is still growing their revenue because they're still expanding globally
they're expanding in Europe big time and obviously in Europe right now there's the Summer Olympic however in the US a lot of Airbnb owners are starting to struggle and I can tell you why there's a Slowdown it's because uh the services provided by Airbnb hosts in many cases are declining and deteriorating and at best very inconsistent and so let me tell you actually a personal story of mine um I stayed at an Airbnb in Los Angeles late in 2023 about 10 months ago this is a a Horror Story everyone it kind of explains to you
why I think fewer people want to book an Airbnb so I booked this Airbnb in La for like a week I was down there filming content and I rented a pickup truck from LAX and there was this carport next to the air BNB where you parked your car was very narrow and the pickup truck I had I you know I asked the host even before I checked in I was like is there enough space for my uh midsize pickup truck he's like I don't know didn't help me I got there found that there was barely
enough space I fit in the carport just barely however the next day when I backed out I scraped the side of the carport with my truck and there was a bit of damage to the truck and a bit of damage to the carport now I am immediately took pictures of it and messaged it to the host at which point the host basically booted me out of the Airbnb and evicted me from the Airbnb literally came into the Airbnb and told me I had to leave which I now know was against airbnb's terms of service however
when the host just barged into the Airbnb at that point I was like I'm not staying here obviously I don't know what this guy's going to do guy was very angry and so the whole time I'm messaging Airbnb customer support and they literally can't they're literally not helping like the tickets are being opened and then being closed and people are telling me different things about what I should do and long story short it was a horrible experience and made me realize that there's no quality control at all on Airbnb with these hosts I mean this
guy was like a 48 out of five like his his rating wasn't that bad but you know he was really really a bad host and you know the more I thought about it after that I was like the more I was like that's insane that that happened that would never happen in a hotel right like if you book a hotel state of Marriott or a Hilton and your car scrapes up against something in the parking garage you talk to the host at the front desk going be like oh how can we help you with that
instead at Airbnb you get unlucky a little mistake the host boots you and the host actually tried to keep my money he said I'm not issuing you a refund fund I'm kicking you out and not issuing you a refund eventually I got a refund but the point of this kind of long-winded story is that if you're booking an Airbnb everyone you got to be super careful with who the host is because you don't know anything about them and there's no quality control they have no customer service training a lot of them are just out to
try to make as much money as possible and so I think this is airbnb's big problem poor customer service poor quality control on who the hosts are and on top of that the other issue is that the price points for the uh airbnbs are now more than hotels if you look uh at data from Air DNA uh one of the big Services ATT tracks uh Airbnb rentals they're showing that the average daily rate for airbnbs is $300 that's the average daily rate for airbnbs and yeah you tack on the cleaning fees and all the extra
service charges I mean it's no longer cheaper than staying in a hotel staying in in Airbnb while you're probably going to get worse service so I think a lot of consumers are saying why why would I why would I do this why would I stay in an Airbnb anymore and you guys can let me know what you think in the comments section below about Airbnb as someone maybe who stayed in Airbnb or maybe you're an Airbnb host and you can give the other side of the story because I'm sure a lot of Airbnb hosts also
have nightmare stories I mean I'm sure some of the people that stay in airbnbs probably trash the airbnbs and then then sometimes they they don't leave like in California there's these stories about how some people booked an Airbnb for four nights and they stayed for a year because they didn't want to leave and then uh because of the local tenant protection laws there say hey if you're in the Airbnb for x amount of time you're a tenant and then you have to be formally evicted and so I know a lot of Airbnb hosts and landlords
probably face a lot of issues as well due to local zoning local regulation of course we all know New York City just banned Airbnb there's been like an 80% decline in listings Over the last year a city like Dallas Texas also just banned airbnbs in single family uh neighborhoods so more and more cities are looking at Banning airbnbs we're also seeing a lot of cities in Europe do this as well and one thing that Airbnb does in their financial reporting that I think is very deceiving that I think you guys should be aware of is
they don't break out the difference between someone booking an Airbnb to stay vers someone booking an experience on Airbnb so important you understand airbnb's business model here folks the experiences is something that they're pushing a lot more of and what that is is like when you go on a trip you through Airbnb can book like a pasta making class or a bar crawl or a bike tour of the city that you're visiting and you could book that on Airbnb as an experience and Airbnb takes a fee for that it's actually a really cool business model
when I've traveled to Europe and Paris I've used Airbnb experiences a couple times and met a lot of cool people but what's deceiving is that Airbnb in their financial reporting is counting an experience booked the same as a room night booked and so we actually don't really know how airbnb's Core Business of someone booking a night in a uh someone's house or apartment is doing this Airbnb does not break that out at all in their financial reporting they lump everything together so it makes it very hard to understand how their different business segments are performing
which I think is crazy everyone because Airbnb is a 70 B billion doll company their market cap is 70 billion they're one of the biggest companies in the world I mean airbnb's market cap is seven times larger than Zillow think about that Airbnb is seven times bigger than Zillow and yet their financial reporting is in the stone ages and they're kind of trying to hide how their different business segments are doing because they don't want you to see just how bad the Slowdown is in their core business model because I think when airbnbs come into
a neighborhood particularly like a residential neighborhood I mean they can quickly change the character of the area like imagine you know you buy a house like maybe say you buy one of these Town Homes here you know pretty nice looking town home pretty new and then say next door someone starts operating an Airbnb next to the the place you just bought and then all of a sudden your neighbor is no longer your neighbor now you just have people going in and out every day different people maybe they're throwing parties Maybe they're allow um I think
airbnbs often in a certainly a single family residential neighborhood change the character for the worst which I think is another issue for Airbnb everyone is that I don't think a lot of people like them I mean who likes airbnbs um certain hosts who make money off it they like Airbnb I would say maybe a a family going on family vacations likes Airbnb because you know an airbn B is a better option than a hotel if you're going with like five or six people and you all want to stay together yeah probably better to book an
Airbnb other than those two segments I don't know of anyone who actually likes Airbnb and so it's this 70 billion company with kind of a very negative image very negative perception where fewer and fewer people are now interested in using their core business model which is why their CEO Brian chesy uh you got to watch out for this uh everyone when the CEOs start saying we have all these new initiatives to drive Revenue apparently Airbnb is going to roll out personal chefs in the next year that's going to be like an initiative to drive Revenue
so you book an Airbnb with six or seven people and then Airbnb is going to help you book a personal chef and you know this is their idea of like you know driving Revenue when they have to start coming up with ideas like that that's something that's showing that the core business is struggling so they're having to get really creative with all these different you know new initiatives to try to drive Revenue in some ways it's similar to what I talked about in my last video with McDonald's McDonald's is struggling their revenue is dropping and
so what are they doing in response they're rolling out the $5 meal deal they're rolling out a bigger Burger that's 11,00 calories because they think that that's going to drive people to McDonald's Airbnb is now entering that phase here and you know everyone again this is a big warning for the economy and the US consumer obviously in the last week we just had the news about increasing unemployment R we had a 3-day stock market crash you know there's now maybe a little bit of a stock market rally going on after that crash but more and
more the negative economic news keeps piling up and when you see a company like Airbnb say hey War uh warning slowing demand in the US their stock price goes down 20 to 25% you got to pay attention and what I would encourage you guys to do if you want to see how the Airbnb crash is playing out in your local housing market head to ww. reventure doapp and search the inventory figures in your city in zip code you'll see that in a lot of areas especially in Florida and Texas and Tennessee the inventory for of
homes for sale is going way up and no doubt especially in more urban locations airbnbs hitting the market is one thing that's affecting that so make sure you go to reventure app and check out the updated July 2024 inventory figures for your Market if you haven't already and also become a premium member uh on reveng trap so you can get access to the premium data points cost us $39 a month talk to you all soon
