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Philly legalized the service in 2015, and it’s boomed ever since.
Apple iPhone 6s plus with the Airbnb app on screen. Airbnb is a website for people to list, find, and rent accommodation. OhmZ | iStock.
While cities like New York are experiencing a rebound in its number of Airbnb Advertisementbusiness expansion has not dried up in Philadelphia.
According to a Applicant report, about 3,000 Airbnb listings are available on average each day in Philadelphia, and that number is up from 700 at the end of 2014. Philadelphia’s active listings – those who have booked at least once during the past year – amounted to 8,200 in total. Overall, Airbnb listings account for 14% of bed and breakfast supply in central Philadelphia, Tony Biddlethe director of CBRE Hotels‘ consulting firm, said the Applicant.
Despite the steady growth, hotel officials are still coy about whether the service is really hitting the industry here. “We’re going to have to stay on top of our game to make sure the market stays strong,” Ed Grosegeneral manager of the Greater Philadelphia Hotel Association, told the publication. “We are seeing an impact from Airbnb, but we don’t know exactly how much.”
One reason the impact might not be fully understood is that Airbnb customers represent “new demand for lodging,” Grose said. Airbnb customers might not have come to Philadelphia without a great deal from the platform.
In 2015, Philadelphia legalized and began taxing Airbnb rentals, making it the largest city in the United States where residents can legally rent out their everyday homes. That year alone, we reported that from April to September, Philadelphia saw a 270% increase in Airbnb listings. And even before the city legalizes the service, the Licenses and inspections department maintained that it would not crack down on the hosts, and especially if there were no complaints.
Some have assumed that Philly legalized the service just in time to meet the great accommodation demand that would come with big events like the papal visit and DNC. At the time of legalization, the city had 15,849 hotel rooms, but that number is growing. According to Applicant.
Airbnb is clearly here to stay in Philadelphia, despite the rise in hotel rooms. And as the company moves to attract more business travelers, Applicant note, Philadelphia’s hospitality industry may well be starting to struggle.
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