According to analysis by Íslandsbanki bank one in five foreign visitors in Iceland in 2015 stayed at Airbnb rentals while in Reykjavík. The number of Reykjavík registered rental properties on Airbnb more than doubled between December 2014 and November 2015. Total revenue by Reykjavík Airbnb landlords was 2.2 billion ISK during the same period (17 million USD/16 million EUR), which equals 15% of the total revenue of hotels and hostels in the capital region.
At the end of November 2015 the number of Airbnb rentals in Reykjavík stood at 2,681, up from 1,188 in December 2014, an increase of 126%. However, Íslandsbanki estimates that the number of booked nights in Airbnbs grew even more, or by 225%.
Read more: 4% of all apartments in Reykjavík listed on Airbnb
The primary driver of this rapid growth in Airbnbs is the tourism boom and a shortage of hotel rooms. Íslandsbanki points out that despite a record increase in the number of hotel rooms in 2015, when 872 hotel rooms were added, and a projected increase of 290 in 2016, demand continues to outstrip supply.
The analysis found that demand for Airbnb rentals is more seasonal than the demand for hotel rooms, supporting the thesis that Airbnb rentals help meet soaring demand hotels are unable to cope with. 61% of the total 12 month revenue of Airbnb landlords came from the peak months of June, July, August and September, compared to 51% of the combined 12 month revenue of hotels being generated in the same months.
According to analysis by Íslandsbanki bank one in five foreign visitors in Iceland in 2015 stayed at Airbnb rentals while in Reykjavík. The number of Reykjavík registered rental properties on Airbnb more than doubled between December 2014 and November 2015. Total revenue by Reykjavík Airbnb landlords was 2.2 billion ISK during the same period (17 million USD/16 million EUR), which equals 15% of the total revenue of hotels and hostels in the capital region.
At the end of November 2015 the number of Airbnb rentals in Reykjavík stood at 2,681, up from 1,188 in December 2014, an increase of 126%. However, Íslandsbanki estimates that the number of booked nights in Airbnbs grew even more, or by 225%.
Read more: 4% of all apartments in Reykjavík listed on Airbnb
The primary driver of this rapid growth in Airbnbs is the tourism boom and a shortage of hotel rooms. Íslandsbanki points out that despite a record increase in the number of hotel rooms in 2015, when 872 hotel rooms were added, and a projected increase of 290 in 2016, demand continues to outstrip supply.
The analysis found that demand for Airbnb rentals is more seasonal than the demand for hotel rooms, supporting the thesis that Airbnb rentals help meet soaring demand hotels are unable to cope with. 61% of the total 12 month revenue of Airbnb landlords came from the peak months of June, July, August and September, compared to 51% of the combined 12 month revenue of hotels being generated in the same months.
