North West Square | Airbnb is building Manchester’s share, but hotels remain dominant
The proportion of visitors to Manchester using Airbnb in 2017 rose from 3.6% to 5.6%, with the online platform accounting for more than 304,700 room nights, according to data from Colliers International.
Colliers found that bookings on Airbnb for properties in Manchester were up 57% year-on-year. For now though, hoteliers remain ahead of the game, more so than in other UK cities.
Marc Finney, head of hotel and resort consulting at Colliers International, said: “The figures for Manchester are interesting as Airbnb adoption is significantly lower than other comparable cities, such as Edinburgh where Airbnb’s market share is closer to 20%.
“This reflects a number of factors, the main one being the more business and commercial nature of the accommodation market in Manchester and this is a sector that Airbnb has been less successful in penetrating than the leisure market. It reflects also the relative supply positions of the markets Manchester offers a wide range of accommodation and has several thousand more rooms than Edinburgh.
Although the busiest accommodation was in the city centre, especially its southern sector, other busy areas in the city region included Salford Quays and Trafford – Trafford East recorded the highest ADR average daily rate – from €86, largely due to the presence of the Old Trafford sports stadiums, Colliers said.
The study was carried out in collaboration with Hotelschool The Hague and comes at a time when various city authorities and tourism bodies have called for regulation of Airbnb.
This is a maturing market and product. Last year also saw a 46% increase in the supply of Airbnb accommodation units in Manchester, reaching a total of 4,321. , more than 39% of units are supplied by multiple advertisers with three or more properties, adding weight to speculation that Airbnb’s local market is beginning to evolve as a distinct business sector. .
Private rooms remain the most popular type of accommodation among Airbnb users in Manchester, accounting for over 51% of all bookings at an average of €44 per night. Next come two-bedroom properties at 22%, which saw a slight year-over-year increase.
The most notable changes have occurred at both ends of the colocation spectrum. The year saw a 33% year-on-year increase in shared room bookings, with an ADR of €31, highlighting the relative affordability of the Airbnb market compared to lower quality hotels, and perhaps a lack of available space in hostels.
At the more expensive end, there was an almost 39% increase in bookings of four-bedroom properties, where the ADR was significantly above the Manchester average, recorded at €261.
As for Airbnb’s foray into accommodation market revenue, Julian Troup, head of UK hotel agency for Colliers International, said the hospitality industry feared the operator’s success would be in jeopardy. partly due to “unequal playing field”, as the accommodation platform is currently unencumbered by the regulatory regime for hotels and guesthouses.
He said: “Given the scarcity of affordable accommodation in Manchester during the summer, you can understand why some landlords take advantage of this to rent out their flats. These statistics show that there is also a huge and growing demand for cheaper tourist accommodation in the city. Airbnb is clearly trying to fill a gap in the supply of affordable high season accommodation in Manchester.