The average daily rate of Airbnb properties

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Pavel Prikhodko, Ph.D. Machine Learning

Airbnb is a privately-owned accommodation rental website which enables hosts to rent out their properties or rooms to guests who use the website to find somewhere to stay. For many of the guests who use this service, Airbnb can offer cheaper alternatives to paying for a hotel room. The company was founded in 2007 when two roommates started AirBed & Breakfast on the living room floor of their apartment. In May 2017, the company was valued at $31 billion.

The graph below shows the advertising spending of Airbnb in the United States in 2014 and 2015. The home rental service invested about $5.1 million in measured media advertising in the U.S. in 2014. The next year, in 2015, the advertising spending of Airbnb shot up to $23.5 million. In the same year, the company’s value was estimated at $25.5 billion.

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Next, let’s take a look at the average daily rate (ADR) of home rental service properties by room type in the U.S. in 2015. This year, the ADR of a shared room in an Airbnb residence was $51.10, while the average daily rate of a private room amounted to $80.67. The ADR of an entire single-room house or apartment was $144.51, while the ADR of an entire house with two rooms was $204.03.

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New York City had more active Airbnb bedrooms than any other market in the country as of September 2015 — 27,965 available rooms! Los Angeles came in second with 17,967 bedrooms, while San Francisco had 8,790 active bedrooms. Miami and San Diego rounded out the top five markets, hosting 7,368 and 6,290 active bedrooms respectively.

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About Pavel Prikhodko

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Pavel Prikhodko, Ph.D. Machine Learning

Pavel has worked for many years as a researcher and developer on a wide range of applications (varying from mechanics and manufacturing to social data, finance and advertising), building predictive systems and trying to find stories that data can tell.

In his free time, he enjoys being with his family.

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