It wasn’t all that long ago that industry insiders cast a wary eye on Airbnb and other short-term rental options, seeing them as a novelty within a bubble. But that’s not the case, in analyzing a recent Airbnb economic impact report.
As it turned out, short-term rental options like Airbnb sites have become a common part of the hospitality industry, so much so, some believe it helps attract more visitors. Especially those looking for overnight options that don’t include a traditional hotel.
That’s the opinion of John Percy, Destination Niagara USA president and CEO.
"We knew that they were going to be part of the landscape, going to be part of future hospitality," said Percy. "And so we just have to work them into the mix of options that are available to the visitors."
Airbnb’s latest report for all of New York State found that last year, its hosts helped generate $3.7 billion in new revenues across the state.
Locally, hospitality industry website Airbitics LLC found that in Buffalo last year, the average daily room rate for an Airbnb site was $124 per night, compared to $161 per night for a hotel room.
A typical Buffalo Airbnb was booked 212 nights last year.
Buffalo Airbnb operator Kathleen Tyler who operates a site on Hughes Avenue, said she gets a mix of visitors including those who want to see Niagara Falls, a Buffalo Bills home game and even some construction workers who are working on the new Highmark Stadium.
That doesn’t surprise Destination Niagara’s Percy.
"Short-term rentals has helped grow our number, brings in more bodies into the destination and more options for the traveling public," he said. "Because not everyone wants, again, a typical lodging property."
In Niagara Falls, the average Airbnb room rate was $154 per night, compared with $165 for a hotel room, and in Jamestown the average Airbnb room rate was $180 per night, according to Airbitics LLC.
To add to the local economic impact that Airbnb has on the region, according to its new report, its typical traveler spends, on average, $811 in the area on top of the room rates. That’s money making its way into restaurants, stores and destinations.
Percy believes Airbnb and other short-term rentals are here to stay.
"There are certain people that love short-term rentals, and there's people that love hotels and motels. So I think there's just a mix of everything for everyone," said Percy.
In Buffalo, there are 1,193 registered short term rental properties while in Niagara County there are 1,719 listings.
Neighborhood push back, in some cases, has become a red flag. That’s why some municipalities either have or are considering limiting the number of approved short-term rental locations.
