Airbnb's Seattle Economic Impact Report

7/25/2019 Airbnb's Seattle Economic Impact Report

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The Impacts ofHome Sharingin Seattle


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Contents

Executive Summary / 2The Sharing Economy / 4

Airbnb Community Overview / 6

Economic Impacts / 12

Conclusion / 26

Methodology and Data Sources / 30


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Executive Summary

Airbnb hosts in Seattle have been welcoming guests into theirhomes since 2009. Over the past six years, Seattle residents haveformed a vibrant Airbnb community, sharing unique experienceswith travelers from around the world.

The following report examines the impacts of Airbnb and itscommunity in Seattle. Economic impactshave been evaluated tounderstand how Airbnb fits into the city. The analysis is based onall travel to Seattle during the year-period from August 2014 toJuly 2015.


4/29Executive Summary 3

Airbnbs community in Seattle has significantpositive economic impacts.

Economic ImpactsDaytime spending by Airbnbguests and income earned by Airbnb hostsimpacts the economy at large, the tourismindustry, neighborhoods, and local households.This report evaluates these economic impacts.

$178M Total economic impact1,700 Jobs supported as a resultof Airbnb guest spending


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The Sharing Economy

Airbnb and our community are part of the new SharingEconomy, a movement that enables residents to access neweconomic opportunities, promotes entrepreneurship, strengthenscommunities and conserves resourcesall aspects of urban lifein which cities have invested significantly. It is fueled by networktechnology and social tools, which are redefining the ways thatgoods and services are exchanged and created amongst citizens,

businesses and governments.

Residents can share their underused assets with others willingto pay to use them; individuals can co-create, collaborate andparticipate more easily, enabling affordable access to resources ofall kinds. Not only is this movement promoting sustainabilitybyencouraging the re-use of existing resources, it alsothrives acrossall socio-economic levels, allowing ordinary people to benefit fromnew economic opportunities. The Sharing Economy is about howresources are used, how hospitality is exchanged, how residentsare empowered, and how economic opportunities are distributedacross diverse neighborhoods. These values are at the heart of whowe are.


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Sharing is not the end but the means tosomething biggersmart, inclusive,sustainable growth.

Mariana Mazzucato, R.M. Phillips Professor in Economics of Innovation,University of Sussex, United Kingdom, OECD Forum 2014


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Airbnb Community Overview

Airbnbs Community in Seattle

Founded in August of 2008, Airbnb is a trusted communitymarketplace for people to list and book accommodations in morethan 35,000 cities around the world. Airbnb connects travelers tounique, local experiences, at any price point. On any given night,more than 140,000 peoplefrom more than 190 countriesaretraveling on Airbnb around the world.


8/29Community Overview 7

AIRBNB LISTINGS IN SEATTLE

AIRBNB AT A GLANCE: SEATTLE IN THE PREVIOUS YEAR

Inbound guests are all visitors to a location. Outbound guests are residents who live in a given location who have used Airbnb to travel elsewhere.

2,900Hosts

151,000Inbound Guests

173,400Outbound Guests

$30MHost Income


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Airbnbs Host Community

Between August 2014 and July 2015, 2,900 Seattle hostswelcomedguests into their homes. These hosts reflect the diverse Seattlecommunity. The average host is 45 years old, with a largepercentage working in art, design, and creative services, as wellas education and health services. While Airbnb hosts are highlyeducated, roughly one in three hosts earns less than $75,000 peryear in household income.

Source: Airbnb host survey.Seattle median household income is based on DP03: Selected Economic Characteristics of the 2009-2013 American Community Survey 5-Year Estimates for Seattle inflated to 2015 $.

10%

Prefer not to say

$150,000 to $199,999

Art, Design, and Creative Services

$100,000 to $149,999

Under $25,000

$200,000 or more

Education and Health Services

$25,000 to $49,999

Professional and Business Services

Leisure and Hospitality

$74,500 to $99,999

Airbnb hostscome from diverseincome brackets,with a significantportion below areamedian income.(36% of hosts are below 120 AMI,

< $79,900/year)

One third ofAirbnb hostswork in art,design, andcreative services,or in educationand healthcare.

HOST OCCUPATIONS

HOST ANNUAL HOUSEHOLD INCOME

Occupations representing fewer than5 percent of hosts, and Other

5% Prefer not to answer

4% Government4% Trade, Transportation and Utilities3% Manufacturing and Construction1% Student11% Other

3%

8%7%

18%

17%

15%

9%

7%

417%

4%

16%

13%15%

16%

7%

13% $50,000 to $74,500

Information Technology

Financial Activities6%


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Primary residence

(including in-law units that are partof a primary residence)

Community Overview 9

The typical Airbnb host rents out the home in which he or shelives. Just over two-thirds, 67 percent rent their entire home orapartment (for exmple, while they are away), with 30 percent

renting a private room, and 3 percent renting a shared room.

10%

Other

Secondary residence

The typical Airbnbhost rents out thehome in which heor she lives

HOUSEHOLD TYPE

3%5%

6%

7%

81

10%

10%

80%

I was nervous to host before I tried it, but I finally decided totest it out when I was away on a costly out of town trip. Myfirst experience was so easy and successful, now it feels like ano brainer to host when Im already going to be out of town.

Airbnb Host in Seattle, age 27

My place would otherwise be empty when I travel. Why notcollect some extra income?


It makes sense that instead of leaving a space empty when wedont have family/friends here, we can earn money on an assetthat we own.



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13% Visiting Friends/Family8% Business or Conference7% Short-term housing while

relocating3% Job Hunting/Interview

GUEST REASONS FOR VISIT 82 percent of guestsvisited for vacationand leisure or to seefriends and family.

Airbnbs Guest Community

Since 2009, more than 295,000 guestshave traveled to Seattle withAirbnb. The number of guests using Airbnb has grown steadilysince 2009, with visitation more than doublingevery year. In the previous year alone, August 2014 to July 2015,151,000 guests traveled to Seattle with Airbnb.

67Vacation / Leisure69%

GUEST GROWTH

Since 2009, morethan 295,000 guestshave visited Seattlewith Airbnb

With year-over-year growth rates at morethan 100 percent since 2009

124,211(July, 2015)

20092008 2010 2011 2012 2013 2014 2015

30,000

60,000

90,000

150,000

120,000

0


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Source: Airbnb guest survey and Airbnb bookings data

GUEST ORIGIN

One in fiveAirbnb guests toSeattle is aninternational guest

7% Europe

3% Asia

2% Australia

0.2% Africa

1% South & Latin America

8% Canada

80% US5% Seattle

75% Rest of US

92%of Airbnb guests are lookingto live like a local

71%

of Airbnb guests looking toexplore a specific neighborhood

71%

of all trips involve familiestraveling with partners, children,relatives or friends


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Airbnbs business model has far reaching economic impacts thatbenefit a) the city overall, b) the tourism industry, c) neighborhoodbusinesses and d) local households.

Airbnb helps bring one of the worlds most economically powerfulindustries right to the front door of local residents. In the process,visitors are connected to a more diverse and affordable rangeof experiences, local households earn additional income, andspending is distributed throughout the city among businesses andneighborhoods that do not traditionally benefit from tourism.

Economic Impacts


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Overall Economic Impact

Host income and visitors daytime spending has a significanteconomic impact in the economy. The following figures quantifythe direct spending in Seattle, based on Airbnb travel betweenAugust 2014 and July 2015.

The $178 million of total economic impact includes direct, indirect, and inducedspending. The amount of direct spending to Seattle households and businesses

between August 2014 and July 2015 alone is significant.

$30M Hosting income earnedby Seattle households

$108M Direct spending atSeattle businesses

Source: Airbnb booking data for the time period between August 2014 and July 2015.

$178MTotal economic impact1,700Total jobs supported


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The emerging peer-to-peer, collaborativesharing economy will be a significant

segment of the countrys futureeconomic activity, stimulating newconsumption, raising productivity andcatalyzing individual innovation andentrepreneurship.

Arun Sundararajan, New York University Stern School of Business professorTrusting the Sharing Economy to Regulate Itself. New York TimesEconomix Blog,March 3, 2014.


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Impacts to the Tourism Industry

Airbnb attractsnew visitors, who stay longer, spend more,and are more likely to return to Seattle. These Airbnb visitorsfundamentally strengthen the tourism industry, creating

additional opportunities for growth without requiring newinvestment or infrastructure on the part of the city.

When I relocated to Seattle, I was able to find affordabletemporary housing via Airbnb while I apartment hunted. Myhosts were so welcoming to me, both into their home and tothis new city, with recommendations for food, sights, and fun.Airbnb made my transition so easy!

Sarah F., Airbnb Guest in Seattle, age 23

Being a part of different communities around the world andgreat cities you really get the fully life of a city native. I love ...being able to cook and enjoy different cities like its your own isamazing.

Sammy T., Airbnb Guest in Seattle, age 26



Sources: Airbnb guest survey, Visit Seattle data (provided to Visit Seattle by Longwoods International annd Tourism Economics, 2014)Numbers may not multiply clearly due to rounding.

Airbnb Visitors

$945Total Spendingper visitor per trip

Typical Hotel Guest

$687Total Spending

per overnight hotel guest to Seattle

$229Total spendingper hotel guest per day

Airbnb visitorsstay longer and

spend more.

+

$263Total spending pervisitor per day

$200

Daily daytime spendingper visitor

3.6Average nightsper stay

3.0Average nightsper stay

$63Daily accommodationspending per visitor

+

$130

Daily daytime spendingper hotel guest

$99

Daily accommodationspending per hotel guest


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Impacts in Neighborhoods

Airbnb distributes economic impacts to neighborhoods thathave not traditionally benefited from tourism spending. WithAirbnb hosts across more than 80 Seattle neighborhoods, Airbnb

visitors are staying in and exploring places they might never haveotherwise visited.

71%of guests were drawn to Airbnbbecause they wanted to stay in aspecific neighborhood

74%of guests stayed in Airbnb listings

because the location was moreconvenient than a comparablehotel

42%of Airbnb guests daytimespending is spent in theneighborhood in which they stay

=

$526Spent per guest per trip in theneighborhood in which he stays

As a result of whereguests stay, moremoney is spent atlocal neighborhoodbusinesses.

93%of Airbnb listings are located

outside of the traditional hoteldistricts

The ypical hotel districts are defined as Seattle zip code 98101 and 98104, where most of the hotels within the city are clustered.



Guests are much more likely to explore neighborhoods off thebeaten track.

Hosts encourage this by recommending alternative neighborhoodsto their guests, with 99 percent of hosts preparing personalizedrecommendations, and all of those hosts recommending localneighborhood favorites.

I love being able to share my city with people.

Seattle Airbnb Host, age 53

AIRBNB LISTINGS VS. HOTELS

1-1,000

1,001-5000

Airbnb listings

Hotels

5,001-10,000

10,001-20,000

>20,000

AIRBNB GUEST STAYS BY NEIGHBORHOOD

Hotel location data from by Hotelsbase.org API


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Columbia City

46Local hosts$478,600Total income to hosts

3,100Inbound guests$935,600Total spent at local businesses by guests

Capitol Hill

342 Local hosts$3.5MTotal income to hosts16,900Inbound guests$5.0MTotal spent at local businesses by guests

Neighborhood Case Studies

Between August 2014 and July 2015, guests stayed in and spentmoney across many of Seattles neighborhoods.

Source: Airbnb host and guest surveys; Airbnb bookings data; photography provided care of Choose Seattle

West Seattle

120Local hosts$911,500Total income to hosts4,900Inbound guests$1.5 millionTotal spent at local businesses by guests


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Impact on Residents and Households

Airbnb helps many Seattle residents make ends meet. The typicalAirbnb host in Seattle earns $8,000, renting out all or part of herhome about 79 nights per year. This modest, yet significant amount

of income has helped more than half of hosts, 60 percent, stay intheir homes.

Source: Airbnb host survey; Airbnb bookings data

Hosts use more thanhalf of their Airbnbincome to pay theirrent/mortgageand other regularhousehold bills and

expenses

Rent/mortgage:

$2,730

Other regular householdexpenses (bills, groceries,etc): $1,33019%

5%

Long-term savings: $670

Vacation: $970

8%

13%

7%Other: $790

For the next 3 years, Im using [my Airbnb income] to get mydaughter through college without her taking out loans.


HOSTING INCOME USE

Extra spendingmoney: $1,000

3534%

17%8%

12%

13%

10%

2%

5%

Emergency fund: $160

Cleaners for Airbnbhosting: $370



Source: Airbnb host survey

Airbnb also enables hosts to afford to take professional chancesand pursue their dreams. Over one third, 37 percent, of Airbnbhosts are non-traditionally employed,with 19 percent saying

that income from hosting has allowed them to support themselveswhile starting a new business.

Percent of hosts who arefreelancers, self-employed, oremployed part-time

19%37%Percent of hosts using Airbnbincome to support themselveswhile starting a new business

I use [my Airbnb income] to pay my mortgage so I can continue

to work as an underpaid/unpaid artist.


Income from Airbnb has given me the freedom to write mybook, which will be launched next month.Seattle Airbnb Host, age 68

2


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I would have lost my home without Airbnb. I cannever thank you enough.Seattle Airbnb Host, age 68

Airbnb have been great for us and our family. Weuse our house most of the year and only rent it for

the months when we are traveling, and it has beena great experience for us.Seattle Airbnb Host Rosemary C. and her husband, retired couple


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While Seattles economy and community havealready started to enjoy the benefits of home-sharing, the practice is still just getting started.There is exciting potential to harness the sharingeconomys momentum and growth for evengreater good.


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Data Sources and Methodology

Data Sources

The findings in this report are based on extensive data about Airbnbhosts and visitors to Seattle between August 2014 and July 2015.Key data sources include:

Host SurveyEmail survey of 159 Seattle hosts who hosted guests betweenJuly 2014 and June 2015. These results generated a 95 percentconfidence level and a confidence interval of +/- 8 percent.

Guest SurveyEmail survey of 100 guests who traveled to Seattle betweenJuly 2014 and June 2015. These results generated a 90 percentconfidence level and a confidence interval of +/- 10 percent.

Bookings DataProprietary Airbnb bookings data from August 2014 to July 2015 forthe City of Seattle.

Additional Data Sources. 2009-2013 5-Year American Community Survey,

DP03: Selected Economic Characteristics. Hotelsbase.org API data as of May 2013

Geography

This report focuses entirely on the City of Seattle. Surveys were sent tohosts and guests within the city limits; public and bookings data are forthe city.

Economic Impact Methodology

The economic impacts presented in this report were calculatedusing the RIMS II multipliers developed by the U.S. Department ofCommerces Bureau of Economic Analysis (BEA). The analysis is basedon the latest available multipliers, from 2010.

Hosts Airbnb income spending is distributed across six householdspending categories: Rent/Mortgage, Other Household Expenses,Long-term Savings, Vacation, Extra Spending Money, Other. Guestsdaytime spending is distributed across six industries: Gastronomy,Groceries, Shopping, Other Leisure Activities, Transportation, andOther Services.

The economic impacts presented in this report were calculated by the

Land Econ Group (LEG).

Acknowledgments

Many thanks to input and feedback provided by Visit Seattle.

Airbnb's Seattle Economic Impact Report

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