Capital Markets

Airbnb landlords earn more in December on festive bookings


Kenyan landlords with properties listed on the short-term house rental platform Airbnb made Sh38,638.6 ($308) on average in the month of December. FILE PHOTO | SHUTTERSTOCK

Kenyan landlords with properties listed on the short-term house rental platform Airbnb made Sh38,638.6 ($308) on average in the month of December attributed to higher bookings during the festive season and increased daily charges per night.

Data from vacation rental research firm AirDNA shows the revenue grew from an average of Sh25,647 ($206) in October when the occupancy rate was at 19 per cent, to a rate of 33 per cent in December.

The 14 percentage points increase in the two months was aided by higher bookings during the festive season as more people celebrated the holidays away from their homes.

The rise signals increased travel and spending by Kenyans and foreigners during the Christmas holidays.

The average daily cost of leasing Nairobi homes through the short-term house rental platform Airbnb rose from $44 (Sh5,461.7) in September to more than $45 (Sh5,602.5) in December.

The charges represent the average cost of nightly bookings plus cleaning fees.

“The median monthly revenue (nightly rate and cleaning fees) earned over the past 12 months. This revenue figure represents the past 12 months and does not include taxes, service fees or additional guest fees,” added AirDNA.

Read: Airbnb owners get a reality check after economic slump

Last year, Airbnb saw a 36.8 percent growth in active rentals from 10,251 homes in January to 14,031 in December.

The festive season saw the hosting on Airbnb rise as families travelled to celebrate the holidays together.

Airbnb is popular among travellers seeking affordable accommodation, convenient location and household amenities.

Most of the properties listed on Airbnb are located in middle-class locations within Nairobi, including Kileleshwa, Westlands, Lavington, Kilimani, Yaya and Valley Arcade.

A night in one of the Nairobi homes listed on the platform goes for between $15 (Sh1,862) to more than $370 (45,928).

A four-bedroom townhouse listed on Airbnb in Kileleshwa goes for up to $124 (Sh15,388) and a two-bedroom cottage in Karen goes for $135 (Sh16,780) a night.

Samra Apartments and Destination Africa limited were ranked some of the top managers on the platform with 4.7 stars and 4.6 stars respectively.

Some of the amenities offered include air conditioning, parking, internet, cable TV, a kitchen, a swimming pool, a hot tub, a washer and a dryer among others.

There were 12,961 active rentals on the platform with three in four of the renters putting up their entire homes for occupancy (75 per cent or 9,703 houses).

“Active rentals are those that had at least one reserved or available day in the last month,” said AirDNA.

Read: Kenya's Airbnb investors feel the heat of party ban

According to research company AirDNA, 44 per cent of the houses listed on the platform are one-bedroom, 29 per cent are two-bedroom, 15 per cent are three-bedroom and nine per cent are studio apartments.

Only 1 per cent of the rental homes are more than five bedrooms in size.

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