Is Airbnb Profitable in the UK?

Airbtics’ data confirms that Airbnb is profitable in the UK. An average host can expect to earn a monthly revenue of £2,446 with an average Airbnb occupancy rate of 55% in the UK. However, it’s good to note that the level of profitability depends on the following factors:

1. Location

Evaluating the location is extremely important to consider as it will reflect on your property’s return. Generally, it’s ideal to invest in a property that’s near your primary residence or office so that it can be managed well.

Apart from this, you should also consider whether the location is accessible to nearby tourist attractions, dining, or public transportation. Finding the best neighborhood for Airbnb property investment is the first step that you need to take. After all, this is a crucial step as it will affect your decision-making in the long run!

2. Market Saturation

A saturated market refers to the existing Airbnb listings in your preferred area. As a rule of thumb, it’s ideal to look into a market that’s not oversaturated. This is because oversaturated markets tend to have tight competition. And unfortunately, this may force you to lower your prices to get more bookings. 

As a beginner in the Airbnb industry, it’s highly recommended to look into the saturation of your target market to identify long-term profitability.

3. Property Type

Looking into the existing property types that are in demand in your area will help you cater to various Airbnb guests. For instance, if the property is located within the city centre where there are more business professionals than families, it might not be ideal to invest in 4-5 bedroom properties. Instead, you may opt for a studio-type or a 1-bedroom apartment.

4. Seasonality

The seasons and events in your target area are important to anticipate more bookings! This is where you can adjust your prices as the demand for accommodation increases.

Property investors are usually looking into markets with low seasonality. Take note that low seasonality does not mean that the area is not profitable! An area with low seasonality may have year-round bookings and, therefore, has a  steady revenue.

5. Potential Profitability

Getting a grasp of your profitability before investing in a property will help you set your expectations. While there are several Airbnb host expenses to prepare for, it’s equally important to gauge potential profitability as well. So you can begin exploring the most profitable Airbnb locations UK in 2023! 

Short-term rental analytics providers make this process easier for property investors. Making wise investment decisions should be a part of your initial planning to achieve success!

What are the Upcoming Events in the UK? 

The major events in the UK highly contribute to Airbnb bookings within the area.  This is where Airbnb hosts are excited the most as they can earn more by increasing their charge per night!
Here are some of the upcoming events in the UK that Airbnb hosts should take note of: 

1. Glasgow International Comedy Festival

The Glasgow Comedy Festival has been celebrated for 2 straight decades now. This year, there will be 380 shows in 37 different venues, celebrated in 19 days from March 15th to April 2nd, 2023.

Airbtics’ data shows that the median revenue in Glasgow City last March 2022 was £1,854. An Airbnb host in Glasgow can expect to earn the highest revenue in July and the lowest in January.