Airbnb is having a worse season in Prague than last year. Management companies leave the market

The second summer covid hit the short-term housing market even harder than last year.

The latest statistics on the use of the Airbnb rental platform show that the number of accommodation offers remains the same as during winter lockdowns, and is thus several times lower than that of last summer.

Many companies that operated short-term rentals have had to give up due to a sharp drop in tourism.

In Prague, around 13,500 apartments are intended for short-term accommodation, but only a fraction of these are active rentals. In the past six months, according to new data, only 1,215 apartments were actually used, that is, they received visitors at least once a month.

During the whole of 2020 there were 8,796 offers, in previous years the annual values ​​exceeded 12,000 apartments.

“For tourists who have visited Prague before, the idea of ​​returning to the city during a pandemic is impossible. Thanks to the unified European strategy on the use of covid passports, some foreign tourists visit the city, but they are still in the minority, ”observes the president of the Czech Association of Private Owners and Residents Matěj Koutný. A year ago in June, 1,183 apartments were rented on a short-term basis, this year only 145.

Prague City Councilor Hana Kordová Marvanová (United Force for Prague) continues to apply the legal regulations of the service. “The city authorities not only register complaints about noise, but the high number of apartments used for short-term tourist accommodation has a negative impact on the functionality of the city, the amount of rents and fees, and the general availability of apartments, ”she said. noted.

Number of apartments listed as active on Airbnb in Prague

According to Airbnb, the scale of bookings cancellations around the world has declined from last year, but it remains higher than before the pandemic. Trends in the use of short-term rents have also changed. Whereas previously the service was used by smaller groups and couples, families are increasingly interested in this type of accommodation.

Brian Chesky, co-founder and CEO of the company, also believes the market has been affected by the global shift to working from home. “About 24% of Airbnb customers now book stays of at least 28 days, whereas before the pandemic, only 14% of customers booked stays this long.”

The decreasing use of short term rentals in Prague has caused difficult times for the entrepreneurs who make a living managing these apartments. “I can confirm that many entities were forced to leave the market. Some have developed their activity on long-term leases, but a large part has been forced to leave the market, ”said Koutný, according to whom the government did not sufficiently support these entrepreneurs.

The management company Carebnb had to leave the market. “Unfortunately, we had to cease operations of the company due to the current situation. We don’t know if we’re going to start working again, ”said founder Pavel Nádvorník.

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