Please wait as we prepare your PDF file ....

Mission Chronicle Blog

Search Blog

our goal is to help you stay informed by providing timely and interesting articles.

Airbnb makes its first profit — ever

01/30/2017

Download PDF

There is a season to sow and a season to reap — and after sowing for a little over eight years, Airbnb is finally reaping the benefits of its hard work.

In the second half of 2016, Airbnb became profitable for the first time — a feat that Uber has yet to reach.

According to a report by Bloomberg Technology, people close to Airbnb say the company is expected to maintain EBITDA (earnings before interest, taxes, deductions and amortizations) profitability through 2017.

Over the past year, Airbnb’s revenue increased 80 percent, even though several cities — such as New York and San Francisco — and even some states have passed laws to prevent hosts from using the platform to make certain short-term rental deals.

“Investors have been impressed with Airbnb’s potential. The company has raised a total of $3.1 billion in venture backing, which makes it the fourth highest-valued venture-backed company in the world with a valuation of $30 billion,” CNET reported.

“The source told CNET that almost all of that $3.1 billion the company has raised remains on the balance sheet.”

Other factors that lead to profitability include little competition from similar companies, no maintenance costs, and the company’s expansion into other parts of the travel experience, which include guided tours, flight-booking tools and reservations, and investments in promising startups.

Beyond the company itself, real estate agents who use the platform to create revenue through short-term rentals could benefit from Airbnb’s new profitability.

In April, Inman writer Teke Wiggin shared the story of Las Vegas real estate broker Iddo Gavish, who raises cash from investors to buy single-family properties and lease them out on platforms, such as Airbnb, from $100 to $1,500 a night, depending on the property.

Although short-term rental funds like Gavish’s are growing in popularity, real estate professionals should be mindful of local regulations on short-term rentals that could land them in hot water if broken.

Email Marian McPherson

Source: click here

Read More

INSPIRED, INTELLIGENT, INSIGHTFULL

STAY INFORMED WITH TIMELY AND INTERESTING ARTICLES FROM OUR BLOG, MISSION CHRONICLE. OUR ASPIRATION IS TO PROVIDE REALTORS AND OTHER REAL ESTATE INDUSTRY PROFESSIONALS WITH EXCEPTIONAL RESOURCES AND SHARE OUR KNOWLEDGE TO PROPEL YOU TO YOUR GOALS.

  • Mission Chronicle Newsletter Dec 26, 2022

    Mortgage rates held relatively steady last week as most economic news came in better than expected.C...

  • Mission Chronicle Newsletter Dec 12, 2022

    Rates managed to move slightly downward last week as recession fears grew amid hopes that the Fedis ...

  • Mission Chronicle Newsletter Dec 5th 2022

    Mission Chronicle Newsletter Dec 5th 2022. Platforms: Browser, mobile-responsiveIdeal for: Leasing a...

  • Inman Review: Tenants and leasing teams get better connected with RentTango

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Tech Review: Smart Alto puts people first in its innovative lead qualification solution

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Refreshed and nurture-savvy, Market Leader’s CRM deserves your attention

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • The top 4 tips to improve your negotiation skills

    In today’s luxury real estate market, strong negotiation skills are an asset—you might even say ...

  • Buy and build with Welcome Homes’ online new construction platform

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Managing buyer expectations in a seller’s market

    I began my real estate career in 2000. And if you had told me then about the luxury market we have t...

  • MailMatic wants to be in your 2021 marketing plans

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

February 2023
Mon Tue Wed Thu Fri Sat Sun
 12345
6789101112
13141516171819
20212223242526
2728  

  • Polls

    What information you are looking for?

    View Results

    Loading ... Loading ...
  • Last month Results

    How Is My Site?

    • Good (100%, 3 Votes)
    • Excellent (0%, 0 Votes)
    • Bad (0%, 0 Votes)
    • Can Be Improved (0%, 0 Votes)
    • No Comments (0%, 0 Votes)

    Total Voters: 3

    Vote

    Loading ... Loading ...