9 Dec, 2020 @ 17:00
1 min read

Pandemic gives Airbnb in rural Spain an unexpected boost

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BOOKINGS for Airbnbs in remote parts of Spain have soared in the last 12 months as tourists turn away from busy cities during the pandemic. 

The average price of a night in the small towns of Ferrol and Ourense rose 28% and 9% respectively in the third quarter, according to AirDNA, which analyses data on vacation rentals.

Meanwhile, bookings and rental rates plummeted in major cities as high COVID-19 infection rates and restrictions kept holidaymakers away for months at a time. 

gaucin
Gaucin is one of the towns that bucked the downward trend

Barcelona and Madrid, two of Airbnb’s biggest markets globally, saw a drop in the number of visitors over 2020 as. 

Both cities were hard hit by the pandemic and data suggests Airbnb guests will now pay more to stay away from crowds in more rural areas.

In Barcelona, revenue dropped by €1,256 and occupancy fell by an average of 45% while in Madrid reported an annual average loss of €1,135. The occupancy rate fell 58%. 

Comparably, Guacin – a picturesque hillside village in the south of Spain – saw the occupancy rate jump by 27% this year. 

The success of rental rates in remote areas helped Airbnb to weather the storm of the COVID-10 crisis far better than expected. 

The company raised its share pricing range before initial public offering (IPO) on Thursday. 

Airbnb raised the pricing range for its initial public offering to $56 to $60 per share, a Securities and Exchange Commission filing showed.

The US-based home-rental company, which cut about 1,900 job, intends to sell 50 million shares and raise $3billion.

The recent valuation is more than double the $18bn the company was valued at during a private fundraising round in the spring at the height of the pandemic. 

Kirsty Mckenzie

Kirsty is a journalist who has reported on news, entertainment, food and drink, travel and features since 2015. She lives in the south of Spain.
Got a story? Email kirsty@theolivepress.es

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