Las Vegas hotels losing guests to Airbnb options
While the number of visitors to Las Vegas likely fell slightly last year, the number of people staying at local Airbnb accommodations jumped nearly 50 percent.
Homeowners in the greater Las Vegas area took in 718,400 Airbnb guests last year, racking in $100 million in revenue, the San Francisco-based company said in a statement Friday morning.
The number represents only 1.7 percent of Las Vegas visitor volume.
“There is no magic margin percentage to indicate real trouble for hotels,” said said Mehmet Erdem, a UNLV hospitality professor. “But any increase in Airbnb occupancy means money left on the table by the hotels.”
Airbnb use has been growing rapidly over the last few years as travelers seek cheaper overnight stays and a more local experience. Overall, Nevada homeowners took in 882,600 guests last year, pocketing revenue of $123 million, according to Airbnb.
”It will be prudent for hoteliers to examine which segments of hotel guests are mostly opting for Airbnb type accommodations and address the expectations of such guests as best as they can,” Erdem said.
Roughly 5,600 Nevada homeowners are working with Airbnb and nearly one in six of those homeowners are seniors 60 years of age or older, according to the company.
The high percentage of older citizens working with Airbnb highlights “how many seniors are turning to home sharing to earn supplemental income to age in place,” Airbnb said.
CES boom
Las Vegas homeowners had a strong week during CES, taking in more than 15,200 guests over the four days, Airbnb said.
CES attracts more than 180,000 attendees while Las Vegas hotels have 147,500 rooms, according to the local government tourism agency. The tight market drives up prices during the week, pushing even more people to see alternative accommodation.
The average daily room rate on the Strip during the four days of CES is roughly $290, according to Home To Go, a vacation rental search company.
The average daily room rate at Airbnb accommodations in Las Vegas over the same four days is $140, according to the company.
Contact Todd Prince at 702-383-0386 or tprince@reviewjournal.com. Follow @toddprincetv on Twitter.
