Airbnb in Brno city
Sharing economy is a phenomenon of the 21st century. Thanks to the constantly evolving information technologies, the traditional business model is changing, which is modified into the form of collaborative consumption. Shared accommodation is probably the best known segment of the sharing economy. The non-profit Couchsurfing platform has been operating since 1999, Homeaway since 2005 and Airbnb since 2007. The Airbnb platform did not expand to Brno until a few years later. We registered the first accommodation offers in 2010 (1 offer), but since 2012 Airbnb has established itself in the city and has experienced rapid development, see the chart.
Airbnb branding was initially perceived as an opportunity (especially for foreigners) to meet each other and stay in a foreign household, which created an attractive atmosphere, authenticity, informality and a kind of belonging in a foreign environment. The most important motivating factor from the guests’ point of view is the favourable price and attractiveness of the location, which, as shown in the attached dashboard, no longer applies much, at least in terms of the price, which is no longer any different compared to a hotel room. In addition, with the growing supply of accommodation through Airbnb, there are many problems, including rising housing and rental prices, depopulation of centres, illegal accommodation, etc., so many cities have resorted to various forms of regulation. In Brno, there is a gradual increase in the share of flats offered in the housing stock. As of December 31, 2019, there were 188,146 flats in Brno. The share of Airbnb bids thus corresponds to 0.4%. E.g. in Prague this share is up to 1.7% (1.4% if we take into account only whole flats / houses).
The attached dashboard analyzes the Aribnb market in Brno from 2016, where several phenomena are analyzed based on AirDNA data. The first page analyzes the origin of visitors who stayed in Brno through the Airbnb platform. The second sheet shows the structure of accommodation and its distribution in Brno. The price and availability are then discussed on the third tab. What are the main conclusions that emerge from the report?
Instead of Czechs and Slovaks, the British, Americans, Germans, Poles and Austrians went to Brno most often.
It will certainly not come as a surprise that visitors from neighbouring countries will appear in the first places. However, few people would be expecting the British and Americans to appear in the first places. Regarding the British, it can be speculated that behind the significant numbers are the London-Brno flights operated by Ryanair. For Americans, however, the significant number is a bit random. One speculation may be that Airbnb is a specific market (e.g. the Chinese do not use it at all), on the other hand the Americans may perceive it as their company (established in the USA) and use it preferentially.
In the Brno-centre district, 67% of all accommodation offers are through Airbnb
In the second place is the Brno-north district with 14.5%. These two city districts thus cover over 80% of all Airbnb offers in Brno. There are also several superhosts. For example, 12 hosts had over 200 arranged accommodations during the reporting period. Of which 1 host even over 300.
The price for accommodation through Airbnb is higher than for a hotel room
Airbnb is becoming a relatively interesting business and in this respect we can talk about a certain erosion of the original values of this accommodation. The price is on average higher by about 10 USD, i.e. by some 250 CZK. In April 2019, guests paid 1,720 CZK for an Airbnb room and 1,470 CZK for a hotel room. On the other hand, we compare the average Airbnb accommodation, which can be a whole apartment with 1 average hotel room. So the price doesn’t have to make such a significant difference.
The offer of accommodation is higher in summer than in winter
The highest supply is in August each year, which can be attributed to the demand for housing in connection with the Grand Prix of the Czech Republic.
Future of Airbnb in Brno
The occupancy of offers in the six-month monthly outlook is low (about a third lower than the previous year) and thus reflects the low willingness of people to travel.