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From first movers to mainstream, can Airbnb meet guest and host expectations?  | Episode 8 | STR Data Lab™ by AirDNA

Jamie Lane, VP of Research, and Mariah Kamei, VP of Marketing, share implications for hosts and guests in the aftermath of many Airbnb updates. In addition to posting really strong Q3 financial reports, with 29% revenue growth year-over-year, the company also shared a slurry of updates in their Winter Release. Airbnb solidified its commitment to growing listing supply by taking short-term rentals into the mainstream. 

Traditionally the value proposition for STRs has been their Value (compared to hotels), but Airbnb’s “All-in Pricing” update may actually contradict that stance. For example, on average, a 1-bedroom STR in urban areas is 30% less expensive than a hotel. Still, cleaning fees, on average, represent 15% of the reservation price and another 15% going to service fees, putting it more on par with the hotels. Will Airbnb’s efforts to go mainstream damage its value proposition? Time will tell, but we can tell you today that staying one step of their algorithm is key to long-term success in the short-term rental business. 

Huge thank you to our podcast producers at hospitality.fm!

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Highlights from the AirDNA October U.S. Market Review:

• Available listings reached 1.37 million – up 23.3% YoY and +10.7% vs. 2019

• Total demand rose 21.3% YoY and sits 30.8% higher vs. 2019

• Occupancy declined 1.9% YoY to 56.7% but is up +12.8% vs. 2019

• Average daily rates rose 5.2% YoY to $254 and are up 31.3% vs. 2019

• Total revenue was 27.6% higher YoY and is up 71.7% vs. 2019

• Nights booked for future travel were up 15.8% YoY to 15.4 million

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Thanksgiving Holiday Performance to date: 

Nearly two million nights have been booked for this Thanksgiving weekend (Thursday through Sunday), which is 16.4% higher than in 2021 and 29.9% higher than in 2019. The average daily rate paid is $304, up 33.3% from 2019, with growth year over year at 4.6%.

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Read the Airbnb Quarterly Financial report

https://news.airbnb.com/airbnb-third-quarter-2022-financial-results/#:~:text=Q3%20net%20income%20of%20%241.2,in%20the%20last%20twelve%20months.

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Read how the strength of STR supply growth has continued year over year for most countries:

https://www.airdna.co/blog/short-term-rental-supply-reaches-record-levels-in-2022

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Read “Beating the #Airbnbust: 5 Tips for Improving Your Bookings:

https://www.airdna.co/blog/beating-the-airbnbust.

Listen On:

Transcript

00:00:13:19 - 00:00:40:09

Speaker 1

Jamie Lane, let's do this. And by this, I, of course, mean the STR Data Lab by AirDNA. I am Mariah Kamei, cohost to Jamie Lane, VP of research here at AirDNA. And today, I believe this episode is going live on Thanksgiving Day. Happy Thanksgiving, y'all. We had too much to talk about. We couldn't wait. We couldn't wait for the holiday.

00:00:40:10 - 00:00:47:07

Speaker 1

We don't take breaks around here. We work all the time. Jamie, how the heck are you, my friend? How's life?

00:00:47:26 - 00:01:17:04

Speaker 2

I'm great. Got to spend a week out in Phoenix last week at the Phocuswright conference. That was my first time going to that show and was blown away by the innovation happening in the hospitality space is very much tech focused, very much new innovation and new companies sort of pitching their ideas, sort of showing us what the next what's coming next in the industry.

00:01:17:04 - 00:01:18:18

Speaker 2

I was I was excited to see it.

00:01:19:05 - 00:01:44:24

Speaker 1

Oh, that's very cool. You're making me jealous. Although I was in Barcelona, Barcelona all week, so I'm only so jealous because. Yeah, I don't know. Phoenix, Barcelona, but learning cool tech. Very cool. And Demi, Demi our CEO was sat in on a really great she led a roundtable discussion on diversity and inclusion. Very super, super important things for us.

00:01:45:10 - 00:01:48:10

Speaker 1

So yeah, it sounds like it was really successful. And then,

00:01:48:11 - 00:01:54:01

Speaker 2

I actually sat in on the panel too for my own learning. Yeah. So it was great.

00:01:54:26 - 00:01:59:14

Speaker 1

Oh, that's awesome. That's awesome. Yeah. I love that we're talking about that kind of stuff in our business.

00:02:00:01 - 00:02:14:04

Speaker 2

Yeah, I already came back with quite a few takeaways on how I can help my team. So it was great learnings and I feel like so many companies are going to have good takeaways on how they can improve their own organizations.

00:02:14:23 - 00:02:35:01

Speaker 1

Oh my gosh, I love that. Yeah, I think it's so important. I know we've dedicated a lot of resources. We have an individual, Kumi that sits on the people operations team whose specialty is DE&I. And Yeah, just again, I think it's just such a great place for this industry to focus, right? Because there there's a little bit of a little bit of privilege in our business, for sure.

00:02:35:01 - 00:02:56:22

Speaker 1

For sure. Well, and then while you were there, I just felt like every time I turned around, Brian from Airbnb was in the news. Things were happening. Quarterly earnings reports. Yeah. Sounds like it sounds like Airbnb is feeling pretty bullish here going into 2023. What were your key takeaways from the earnings call?

00:02:57:04 - 00:03:25:12

Speaker 2

Yeah, you would think with the sort of impending recession in the us talking ourselves into recession, that he may start to talk back some of the you listen to the tech space and it's layoffs continual sort of and we're in a recession and that there's going to be a pullback and you just don't hear it you didn't hear it at Phocuswright

00:03:25:12 - 00:03:55:19

Speaker 2

You don't hear it with really any of the travel CEOs. I listened in on all the earnings calls on big hotel companies, the big OTAs, booking, Expedia, Airbnb and the Wall Street analysts. They ask them like, Are you seeing weakness? Where is it? Right. And I don't think a single one pointed out or was able to point out any weakness in their own business.

00:03:56:06 - 00:04:27:18

Speaker 2

Airbnb, nights booked were up 25% year over year. That's unbelievable. And given that they were already fully recovered from the pandemic last year, they were able to really grow off of that and shows the strength I think it maybe puts to rest some of the Airbnb bust folklore out there that they were seeing declines in their bookings.

00:04:28:08 - 00:04:29:09

Speaker 1

Right. Right.

00:04:29:25 - 00:04:49:01

Speaker 2

Yeah. I mean, 25% more bookings and only 15% more listings. So if you're on Airbnb, more than likely you saw more bookings coming through that channel than at any other time. So for Airbnb, I think it was an amazing earnings release.

00:04:49:20 - 00:05:13:23

Speaker 1

Yeah, totally. I think they had what like revenue grew 29% year over year as they, as you said, really driven by nights booked and ADR adjusted EBITA of 1.5 billion, which so it increased 32% compared to Q3 of 2021. So lots and lots of health really just I think indicating that they are feeling pretty stable and justifiably so.

00:05:13:25 - 00:05:15:21

Speaker 1

The numbers the numbers are there.

00:05:16:06 - 00:05:20:05

Speaker 2

And and their stock went down. I know!

00:05:20:10 - 00:05:24:13

Speaker 1

You know what? That's. Yeah, I saw that, too. I saw that, too.

00:05:24:13 - 00:05:30:19

Speaker 2

So that was that was primarily around their their expectations for Q4 and sort of leading into 2023

00:05:30:21 - 00:05:31:03

Speaker 1

Right, right.

00:05:31:22 - 00:05:56:03

Speaker 2

So they sort of guided that they expect revenue to be up 20% year over year in Q4. And you just mentioned 29% growth in Q3. So incrementally lower growth. And I think that caught a few people by surprise that and growth isn't going to be as strong as we look forward out into the future as it has been so far.

00:05:57:21 - 00:06:15:05

Speaker 2

And broadly, I think that's to be expected. Our outlook has revenue growth slowing broadly for the industry. We expect supply growth to slow some and maybe that gets us to the winter release of it was all about supply.

00:06:16:10 - 00:06:35:11

Speaker 1

It's all about supply. I need to come up with a cute saying for that one as well. And it's yeah, I think our our press team was just saying it's the only thing anyone ever wants to know about is what's happening with supply. I but I do, I like what you're saying. And this is why generally for me, I always try to under-promise, overdeliver.

00:06:35:19 - 00:07:08:15

Speaker 1

You know, it's not like maybe make those growth numbers a little lower. I don't know. That's the advice from the non economists in the room. But yeah. So then this great earnings report, little stock dip was followed by the winter release which is always highly anticipated by our little in our little neck of the woods as they say definitely they were sending quite Airbnb was sending quite a few signals that they are really focused on growing their supply, attracting more hosts but probably a specific type of host which we can get into in a minute.

00:07:10:04 - 00:07:20:23

Speaker 1

And I think you you anecdotally, I think you've maybe set someone in your family up with Airbnb, is that true? Like you've helped them with the onboarding process. You're very intimately aware of how it works.

00:07:21:05 - 00:07:36:05

Speaker 2

Yeah. So and I've done a few listings of my own, but and with their sort of main goal around growing supply and how, and I think Brian says is how to unlock the next generation of hosts.

00:07:36:13 - 00:07:37:25

Speaker 1

Oh that sounded sexier.

00:07:38:06 - 00:07:49:13

Speaker 2

Hosts do tend to be older Americans, older generation people around the world. And as someone who has helped my own mother set up her listings.

00:07:49:13 - 00:07:49:26

Speaker 1

Shout out to Mom

00:07:51:05 - 00:08:26:02

Speaker 2

Shout out to all moms out there, it wasn't the easiest thing to do. But if there is another super host out there that was willing to just share their screen with my mom and help her set up that listing, I do think that that could have a very positive impact on being able to grow supply, being able to get people through that process, not get stuck in the minutia of like, I don't want to list, but I don't know how to title my listing.

00:08:26:02 - 00:08:52:24

Speaker 2

I don't know how many photos I should put on which photos should I choose as my main one sort of. There's so many decisions that go into that process. And if Airbnb was finding that just having someone to help them through that decisioning process get the listing live, and then once that happens and they're golden, that was definitely a piece of this.

00:08:53:07 - 00:09:13:19

Speaker 2

They've got there are 400,000 super hosts out there to sort of choose from. They've got their 1500 ambassadors. Then I think I heard that they're sort of using to roll this out with. So you're going to get someone that knows the Airbnb platform through and through helping you set up your listing. It's got to help.

00:09:14:15 - 00:09:38:06

Speaker 2

And then and just more support from Airbnb even just being able to choose the type of guests like if I'm going to be starting with Airbnb, it's my first listing. I don't also want a first time guest if there's just the opportunity for none of us to know what we're supposed to be doing and the opportunity for disaster.

00:09:38:12 - 00:09:53:17

Speaker 2

So I'd be able to pick like I want to get some experienced guests in for my first time, right? Some of these things that sort of reduce the friction to help grow supply. I think we're good parts of the release.

00:09:55:10 - 00:10:03:00

Speaker 1

100% So of course I would just naturally went to Airbnb virgins like if you're both virgins maybe it's just.

00:10:03:00 - 00:10:03:08

Speaker 2

Not good

00:10:05:03 - 00:10:21:10

Speaker 1

But I want a mentor for everything in my life right? Yes, it is. It does feel daunting. How do I list this property. How do I take a great photo? How do I even decorate it? Right. I know all of that. I know there's tons of debates. And what color are your sheets going to be? All of that good stuff.

00:10:22:22 - 00:10:26:21

Speaker 2

And I'm going to leave this whole virgin analogy alone. But okay.

00:10:27:17 - 00:10:31:24

Speaker 1

Yeah, I kind of I took that a little. Okay. Well, you know, people expect that from me, Jamie.

00:10:31:25 - 00:11:00:20

Speaker 2

And then I know the other thing. We definitely had this conversation, my wife and I, when we first put our house up on Airbnb is just the potential for damage in your house and getting comfortable with that. Yeah. Adding the additional air cover to not only cover sort of the liability around guests in your home, but if they damage things in your property.

00:11:01:04 - 00:11:52:20

Speaker 2

So paintings, cars, boats, anything that are on property, providing additional damage coverage for those and then guest verification. So actually verifying the ID, they're starting in 35 countries. We know this is something hosts care about. There's companies already out there that provide this like air hug. So Airbnb getting into this I think is going to give a lot more hosts that ability to feel comfortable that at least and they've uploaded an I.D. that's been verified by Airbnb I know who's coming to the property there's much lower chance for fraud, for things happening outside of your control.

00:11:52:20 - 00:12:11:02

Speaker 1

Yeah a lot of those really great signals of professionalization. Right. And yeah, I think there is always been sort of that reputation of, like you stay at an Airbnb, because you're going to go party, which is, you know, I mean, only probably true half the time, where is the stat there? We’ll figure it out. Well, I think so.

00:12:11:02 - 00:12:29:07

Speaker 1

The big, I think the big headline, the thing that I did see a lot of people reacting to on LinkedIn, which is, you know, because I'm an older millennial, my preferred social platform at this point was the talk of the all in one pricing. That was sort of the big I felt like that was the big headline.

00:12:29:07 - 00:12:51:19

Speaker 1

A little bit of a mixed bag there. Sounds like the intentionality was to sort of, you know, level the playing field for folks. Felt a little bit more like a guest driven update to benefit guests. But yeah, what was your take? Because I know you've been I know we've talked a lot about my favorite topic, which is cleaning fees and how those sneaky things come up.

00:12:52:07 - 00:13:00:14

Speaker 2

Yeah, you may not have seen it a lot hanging out on LinkedIn, but on on TikTok and Facebook.

00:13:01:05 - 00:13:04:07

Speaker 1

You’re so much cooler than me.

00:13:04:07 - 00:13:39:08

Speaker 2

There was a big sort of backlash against sort of high cleaning fees. Yeah. The massive guest check out lists, things like that. And to Brian and Airbnb's credit, they're trying to respond to that. And so on one side for the guests and seeing all in pricing is great. So you start your search, you know what you're going to pay from the outset and you're going to have a much better experience.

00:13:39:08 - 00:14:05:17

Speaker 2

That's actually by law, the default in Europe and throughout much of the world. It's not the default in the US and I think in the US and we sort of been trained that when you see a price on a menu, that's not actually the price you're going to pay, you're going to pay a tip, you're going to pay taxes, you're going to there's there's sort of your initial price and then there's your all in price.

00:14:06:28 - 00:14:09:21

Speaker 1

The service fees, the cleaning fees, all the rest.

00:14:10:05 - 00:14:38:05

Speaker 2

Right. And for and we've looked into this on a key reason why people choose a short term rental over a hotel. One of the top two reasons continually given is value. So if people are coming to our industry to find good value and if, then they get to the end. And it's not as good of a value that they thought then they’re maybe not as happy as they otherwise would have been.

00:14:38:17 - 00:14:51:20

Speaker 2

So true in major cities in the US an average one bedroom short term rentals about 30% cheaper than the average hotel room. So on the surface there there's a good.

00:14:52:10 - 00:14:52:23

Speaker 1

Value.

00:14:52:23 - 00:15:15:08

Speaker 2

Argument to be made that short term rentals do provide that value, but that 30% discount is before all the fees. So now you add on the average cleaning fee, which for an average sort of overall reservation cost cleaning fees are about 15%.

00:15:15:17 - 00:15:16:00

Speaker 1

Okay.

00:15:16:21 - 00:15:34:15

Speaker 2

You add on Airbnb service charge, which usually goes to the guests, that's about 15%. So now if you're seeing that initial rate inclusive of that 30% extra, we're essentially on parity with hotels.

00:15:34:15 - 00:15:35:15

Speaker 1

Right? Right.

00:15:36:20 - 00:15:50:22

Speaker 2

If thinking if you're going to a city or maybe going to New York and the opportunity to stay in a short term rental versus a hotel and let's say you don't care about the additional things you get with a short term rental. Let’s say a kitchen or living room.

00:15:50:28 - 00:15:51:17

Speaker 1

Kitchen.

00:15:52:02 - 00:16:05:18

Speaker 2

And you just care about that sort of price and having a room to sleep in. And maybe so incrementally people do start choosing hotels over short term rentals because of that, even if in the end it was sort of the same price to begin with.

00:16:06:13 - 00:16:07:06

Speaker 1

Right, right.

00:16:07:09 - 00:16:31:27

Speaker 2

So and I think it's yet to be seen. It's going to start as a toggle. I think they're going to start rolling it out in December. So and we'll probably hear how many guests sort of toggle to toggle to see all in pricing wether they start to make it a default. I'm sure they're going to be testing what the conversion is and if it's a big impact, maybe they start to roll it back.

00:16:32:25 - 00:16:47:27

Speaker 2

If they start to hear a lot of sort of higher guest satisfaction and sort of good benefits coming from it, maybe they roll it out as a default.

00:16:47:27 - 00:17:11:17

Speaker 1

It is. I think I think that's interesting. And, you know, lots to unpack with this sort of value conversation, right? Because I think that's the great tightrope type rope walk, especially if you're in a more of a professional vacation rental manager situation where you may have your CEO telling you to maximize revenue, which may be just a little bit different from maximizing value for your guest, of course.

00:17:12:04 - 00:17:26:07

Speaker 1

But what struck me when you were saying that is I think there could be a little bit of an element of, hey, what's good for the goose is good for the gander. Like, what's good for the guest is good for the host, right. Because, you know, again, they, you know, a savvy guest is going to be able to sort of figure that out anyways.

00:17:26:07 - 00:17:44:28

Speaker 1

They're going to back into that. You know, they can what I do is I sneakily go all the way almost to check out so I can see what's really going to cost. So it's almost like, you know, like you could ignore the reality of the situation, which is that people are probably looking both at hotels and STR’s in a lot of their searches.

00:17:44:28 - 00:17:49:15

Speaker 1

And I know there's been some good data points on that, but or you could address it.

00:17:50:05 - 00:18:17:08

Speaker 2

And even if you're going through the checkout process to see what that all in price is like, that's not always doable when you're looking at 20 different properties they’re on a map. You’re having to click through each one. So but there is now the option already for guests or for hosts to start including cleaning fees in the nightly rate.

00:18:19:01 - 00:18:33:04

Speaker 2

And Airbnb has said they're going to start prioritizing in their rate algorithm, those hosts that are doing all in pricing, those hosts that are providing really good value. So getting good value scores.

00:18:33:04 - 00:18:33:14

Speaker 1

Yeah.

00:18:33:23 - 00:18:56:11

Speaker 2

So that and, and if anything could incentivize hosts to sort of change their behavior and based on wanting to and get higher up in the rankings and you run a marketing org, you know how much, how important SEO is and making sure and you're always on that first page and that's the same thing for hosts.

00:18:57:00 - 00:19:17:10

Speaker 1

Yeah, yeah. No. Yeah. I mean, I'm old enough to remember when there weren't algorithms driving every decision in our lives. But, you know, at this point, yes, there's always the algorithm to contend with. So certainly going to be an interesting tightrope walk, I think, for a lot of folks specifically, you know, a little bit more the professionals, but really great opportunities again.

00:19:17:10 - 00:19:33:06

Speaker 1

And clearly I think Brian and Airbnb are setting the signal that, you know, in order for them to really, truly grow their supply, they are going to have to get people that have never done this before. Right. There's only so many professionals out there that can add more listings, right?

00:19:33:07 - 00:20:12:10

Speaker 2

Yeah. And I know over the past two years there's been so many new guests like we dove into our data and found it was like. And over the past two years, 40% of reviews that were being left were from people leaving their first review ever. So when prior to the pandemic, it was like 20, 25%. So we've and of all the bookings and it was what it was 99.7 million nights booked and so many millions was that 90 million guests sort of staying like.

00:20:12:10 - 00:20:39:20

Speaker 2

And the amount of people now staying in this industry experiencing it for the first time and really pushing it through. And I think Airbnb's maybe thinking about this more than some of the other platforms, bringing it to mainstream. And what does the platform need to look like for not just the first adopters, but for that sort of the mainstream traveler?

00:20:40:03 - 00:21:00:20

Speaker 2

And also and I see them as one of the only platforms, maybe the only platform that is trying to grow the overall supply overall pie of hosts. Right? The other OTAs are more looking to just grab the ones that are already out there getting a higher share of the of the hosts of the listings that are already live.

00:21:00:20 - 00:21:14:00

Speaker 2

So really trying to grow the overall pie and as people and hosts that sort of are part of that pie, I think that's a great thing, especially as it brings new guests to the ecosystem.

00:21:14:00 - 00:21:31:02

Speaker 1

Yeah, I absolutely love that. And I love that concept of bringing it to the mainstream, mostly because now I think I can bring it full circle and be like, So what I'm hearing you say is that there's going to be a lot fewer Airbnb virgins out there. Jamie In the future.

00:21:31:12 - 00:21:37:23

Speaker 2

Yeah, a lot more experienced guests to choose from.

00:21:37:23 - 00:21:58:14

Speaker 1

And I will, I will say I was in the airport and in Barcelona and huge billboards all over the airport from Airbnb. So I think they really are taking that to heart from their marketing strategy too, which we will nerd out on another day because, you know, it's it's not, it's not as important as supply. Again, you know, supplies are the most important thing here.

00:21:58:14 - 00:22:01:08

Speaker 1

I would say so. So let's talk about that.

00:22:01:21 - 00:22:04:08

Speaker 2

How was your listing in Barcelona this time?

00:22:05:01 - 00:22:09:14

Speaker 1

Oh, it was very good. Well, and but fun fact. It was a boutique hotel.

00:22:10:00 - 00:22:10:18

Speaker 2

Oh.

00:22:11:03 - 00:22:29:00

Speaker 1

I know worlds. Their worlds are crossing the worlds across. I stayed at Isabella's house. I highly recommend the rooms are colored. Like there's like a red room and everything is red. Like the walls, everything and the furniture. And so, like, maybe if you if you if you're color sensitive.

00:22:30:10 - 00:22:32:19

Speaker 2

Go for the white room or the beige room. Yeah.

00:22:33:02 - 00:22:58:09

Speaker 1

I really I really wanted the pink room for some reason, but I ended up with the red room. It was fine for me. I'm not color sensitive, but if you are and you're like, I hate red. Avoid, avoid. All right, let's. Yes, I feel like we've been we've been burying the lead for a little bit here. Let's talk a little bit about supply, my friend, because that was a topic of conversation in the news last week.

00:22:58:18 - 00:23:21:02

Speaker 1

Everyone wanted to know what was going on with supply. And I think there was there was a potential to potentially misinterpret some some of the supply based on the decision Airbnb made to back out of China. So I would love to know how supply doing Jamie how’s the supply doing?

00:23:21:16 - 00:23:58:06

Speaker 2

Supply is still growing. Still growing very strongly. So in the US and overall supply is up and still around 20, 25%. That's been really stable. Something we've been talking a bit about is just the churn. And while the churn looked a bit high, these past couple of months, that was really just Airbnb exiting China, not sort of an uptick of hosts leaving the platform.

00:23:58:15 - 00:24:31:22

Speaker 2

And it's been really steadied around 2% of listings leaving each month. We still have about 3% of listings, overall listings coming in. So overall supply is growing excluding the exit of China and overall listings are still up. I think in October we were up 18% year over year on Airbnb, 25% and across the board in the US and we're seeing supply begin to accelerate and throughout the rest of the world too.

00:24:31:22 - 00:24:59:24

Speaker 2

So the sort of recovery that the US hit last year sort of spread out to Europe and South America this year and we're seeing supply respond and I think we've got a lot of tailwinds heading into 2023 globally, even if there are a bit of sort of supply growth headwinds in the US given some pullback in occupancy and some of the things we've been talking about.

00:25:00:11 - 00:25:21:18

Speaker 1

Yeah, yeah, yeah. And still might be getting a little bit of investor sentiment, you know, just in terms of wanting to buy a house right now. But lat am super strong. I know we always see that direct connection to supply going up when it's the busy travel time in an area. What else happened in October?

00:25:21:18 - 00:25:30:10

Speaker 1

Speaking of October, I know we're we're just getting set to release some good stats there. What's the state of the state, my friend?

00:25:30:22 - 00:26:22:05

Speaker 2

Yeah, and not too much dissimilar from September. So occupancy is still down about 2%. Rates were up about 5%. So that sort of pegged where we at in September demand growth up around 20%. That's I'm very much where we've been throughout 2022 nights booked up 16% at nights booked in October compared to October of last year. So in terms of booking pace and maybe three months ago, we're in mid twenties, so coming in a little bit weaker, but I don't think anyone would complain about 16% growth.

00:26:22:25 - 00:26:24:21

Speaker 1

So it sounded good to me.

00:26:25:03 - 00:26:56:19

Speaker 2

Yeah. And broadly things are looking good and if we see 60% growth for an extended period of time when supply is still growing and 23, 24%, that may be a pause for concern going forward, but we are going to have some weird comps coming up. So think about last year and this is going to be really important for people as they're reviewing their year over year figures because we had Delta, we had Omicron.

00:26:57:03 - 00:27:16:11

Speaker 2

Right. And there were some wild sort of month, month to month swings in bookings as like with Delta we and we were sort of in it in August and September. We sort of came out of it in October. November, it was like, Oh yeah, bookings. Like let’s book for the holidays and then the holidays started coming around.

00:27:16:11 - 00:27:40:04

Speaker 2

I was like, Oh no, Omicron like don't book, don't travel. Right, right. Yeah. We saw that huge surge in cases into January. So and definitely take in sort of the month or the year over year changes a bit with a bit of a grain of salt as we're going to be sort of hitting some weird, weird comps in the months ahead.

00:27:41:00 - 00:27:58:15

Speaker 1

That's a really good note. I love that. And I think that, you know, so like. Yes, absolutely. Like, you know, don't index off just one year of data. Right. That's why we always go back and look at 2019 too which was sort of pre-pandemic. And yeah, I mean, you know, it's interesting, right? Because COVID still hasn't gone away.

00:27:58:15 - 00:28:16:17

Speaker 1

Now there's all these other things to worry about, like RSV, you know, it's like it's just never it apparently never goes away. So very interesting to see what happens. And then, yes, guys, y'all, as we say, don't index off the high look at 2019. That's why we always bring it up when we show you the year over year stats as well.

00:28:16:17 - 00:28:34:01

Speaker 1

Well, good. Well, sounds like the state of the state is good. It's Thanksgiving obviously today when people will be listening to this podcast. Jamie So how did think how did we do for Thanksgiving this year? I was at the airport yesterday. It was getting a little crazy already. There it was. You know, it wasn't a pleasant airport experience.

00:28:34:11 - 00:28:35:20

Speaker 1

I'll say that.

00:28:35:20 - 00:29:02:04

Speaker 2

Yeah. Well, and if you're listening to the podcast, I'd say there's a high likelihood you're away from home and you're either staying with friends and family or you're staying in a short term rental. So and we've already seen this data through last week, like 2 million nights booked for the weekend of Thanksgiving, sort of peaking on Thursday night at almost 630,000 listings booked.

00:29:02:12 - 00:29:31:00

Speaker 2

That's up, what, 16% year over year. So more people than ever before staying in a short term rental over Thanksgiving, you're paying more. The rates are up about four and a half percent. So as an industry and things are looking pretty good for the holidays, as we look out to Christmas, I'm more of the same. Nothing, nothing yet.

00:29:31:00 - 00:29:33:15

Speaker 2

I would I seem to be concerned about.

00:29:34:15 - 00:29:47:28

Speaker 1

I love it and I can't wait. Next time we'll talk, we'll talk all about what to expect for the holidays. I like this idea. All right, Jamie. Well, I have to ask you the question. What are you thankful for today on this day of gratitude?

00:29:48:12 - 00:29:53:15

Speaker 2

Yeah. So I'm obviously thankful for my family.

00:29:54:11 - 00:29:55:18

Speaker 1

Shout out to the family.

00:29:55:24 - 00:30:02:03

Speaker 2

And my wife who keeps me sane, but since we’re

00:30:02:03 - 00:30:07:16

Speaker 1

And brings you coffee. She also brings you coffee in addition to keeping you sane, they may be correlated.

00:30:07:23 - 00:30:09:10

Speaker 2

Or she did while I was quarantining

00:30:10:14 - 00:30:13:02

Speaker 1

Yeah, that's true. That was, that was a one time offer. It was a.

00:30:13:15 - 00:30:14:21

Speaker 2

One time thing. Yeah. Okay.

00:30:14:21 - 00:30:19:11

Speaker 1

Good to know.

00:30:19:11 - 00:30:57:05

Speaker 2

But since we're talking about data, I'll go with some data and thankful for, so in November, we had one of our first sort of positive in terms of sentiment inflation reports. So while inflation still came in high, it was lower than expectations and sort of potentially puts us over the hump of inflation growth and sort of tells the Fed that they could potentially pivot towards a pause on interest rate increases.

00:30:58:12 - 00:31:39:18

Speaker 2

And the stock market was definitely excited by the news we saw and the markets go up substantially in the two days following that report. So a lot of positive sentiment. People did come out, the Fed chair saying like, hey, don't get too excited because if you get too excited, inflation will just keep going up. So I'm trying to throw maybe a wet blanket on some of the positive sentiment, but I'm as an economist, I was excited that it and sort of had our first positive surprise on the inflation numbers.

00:31:40:10 - 00:31:53:28

Speaker 1

I would say that's definitely something to be grateful for. And yeah, I love I like yeah, I like it. This is really just with the recession. It's just like just don't talk about it, don't think about it. Just like positive vibes all around and maybe it's all going to work out.

00:31:54:01 - 00:31:55:15

Speaker 2

Mariah, what are you thankful for?

00:31:56:03 - 00:32:26:07

Speaker 1

Well, you're making me realize I do definitely need to shout out my husband, who just spent ten days with my kids on his own. So very grateful to have such a wonderful parenting partner. He is always and always and will be the better half of this dynamic Kamei duo then, you know, data wise, I think I think I'm going to say that I'm grateful for, you know, supply continuing to do a decent job here.

00:32:26:07 - 00:32:36:11

Speaker 1

It hasn't completely fallen off a cliff. And that makes me super happy. Of course, in tandem with demand, not also jumping off a cliff.

00:32:36:11 - 00:32:51:04

Speaker 2

Yeah. For our business of supporting supply growth and sort of democratizing the data around short term investment. Like we want supply to continue to grow, especially up and running in the right way.

00:32:51:04 - 00:33:10:13

Speaker 1

So yeah, yeah, I would agree. I mean my stance for what it's worth now that I need to know is that, you know, getting the mainstream, having more people interested in short term rentals, vacation rentals as a means of travel and exploring the world is nothing but good news for everybody in the business. That's my positive take, y'all.

00:33:11:20 - 00:33:24:14

Speaker 1

All right. Well, I think I say we tell these people Happy Thanksgiving. I hope you're all incredibly full of delicious food and have a wonderful yeah, have a wonderful Thanksgiving with your friends and family and other people. You're grateful for.

00:33:25:19 - 00:33:27:15

Speaker 2

Happy Thanksgiving, everyone. Bye, guys.

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