Airbnb hosts in SA made more than R2bn in 2021

New data from Airbnb has shown that hosts using the online accommodation booking platform made R2bn in 2021, as people got back to travelling after a hard lockdown, which crippled the local tourism sector. 

According to research firm Genesis Analytics’ analysis of Airbnb data, in 2020, a “crisis year” for tourism in SA, travel on Airbnb contributed more than R8bn to the local economy, equal to about 22,000 jobs, through its network of hosts and hospitality operators. While an impressive number, it was 20% down from the R10bn that Airbnb told Business Day it had contributed in 2018, a sign of the toll that lockdown restrictions took on the sector.

In 2019, the platform’s contribution to the local economy was even higher at R11bn. 

Airbnb would not disclose how much hosts in SA earned when in 2020 approached by Business Day. 

Airbnb is a $105bn US technology company that has disrupted the the hotel and accommodation industry globally over the last decade. Like Uber in mobility, the business, which owns little property of its own, allows hosts — made up of homeowners and hotel operators — to list their properties for short-to-long term stays. 

This week, the San Francisco based online marketplace said hosts in SA have earned almost R12bn since 2010, underlining its small — compared to more than R500bn spent across the sector during the same period — but significant role in the ailing economy. Between January 2021 and December 2021, local hosts collectively earned more than R2bn.

From 2010, hosts across the world have earned a total of $150bn. 

The company said the growth had been driven by borders reopening and travel beginning to return, leading to hosts earning “more than ever before”.

According to the Tourism Business Council of SA, in 2019, tourism contributed 8.6% to the country’s GDP, signalling its importance as a top earner. The sector employs 1.5-million people, a larger number than even mining.

Airbnb singles out Theewaterskloof municipality in the Western Cape as an area that has done well. Hosts earned about 65% more in 2021 compared to 2019, before the Covid-19 pandemic and travel came to a halt globally.

Airbnb’s data also shows some the highest earnings periods and times through the years. 

For example, during the popular Heritage Day Weekend, demand on the platform was at a high, with the public holiday being the most popular check-in day for SA guests in 2021. 

On Christmas Eve hosts earned almost R32m, as many travellers decided to celebrate the festive season by taking a holiday trip. 

Summer holidays drove huge demand for travel with dates in December making up 100% of the top 10 days with the biggest host payout, the biggest of which was December 28. Travel over winter and the school holiday period saw hosts taking in more than R300m, from the start of June and the end of August. 

“In the face of a challenging year for travel in 2021, our community of hosts really rose to the occasion, adapting to the burgeoning domestic travel market, and doubling down on making sure all guests felt happy and safe on their travels, said Velma Corcoran, region lead for Middle East and Africa at Airbnb.

Corcoran says with borders reopening and travel back on the agenda for many: “Looking back at last year proves there is a real opportunity for our hosts to welcome guests into their local communities, all while earning helpful cash on the side. With the rising costs of living, the extra income could prove to be a real lifeline for many.”

gavazam@businesslive.co.za