While Bangkok isn't one of the top markets for Airbnb by supply or revenue size, the city is a popular travel destination that attracts millions of tourists across the globe and digital nomads. So, is the Bangkok rental market profitable for running an Airbnb business?
Bangkok Rental Market: Key Vacation Rental Statistics
Being Thailand's largest and wealthiest metropolitan city, its capital, Bangkok, welcomes more visitors than any other city in the world. Bangkok's status as a major tourist destination fuels demand for vacation rentals and properties in tourist-favored areas since many travelers are looking for alternative accommodations where they can live like locals.
That makes Bangkok a good option for Airbnb investment, especially properties in the popular areas of Sukhumvit, Silom, and Sathorn. They offer good returns because the proximity to the city's attractions and public transportation makes these areas attractive to potential guests.
Starting an Airbnb in one of the neighborhoods travelers often search for, you are likely to make a good income if you do your best to ensure a perfect guest experience. Although running an Airbnb requires commitment, you can manage it hassle-free if you use vacation rental software like Hospitable. Our tool will allow you to automate almost all daily tasks and put your business on autopilot.
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The latest data from Airbtics show that, from July 2023 to May 2024, 14,135 active Airbnb listings in Bangkok were available for bookings for more than 90 days. Compared to the previous year, the number of Airbnb listings has increased by 36.4%, and a 2-year supply change is 206.42 %.
The data also reveal that only 19.9% of active Airbnb listings in Bangkok this year are the same properties active on this OTA platform last year. However, although many listings have become inactive, even more new ones have entered the market since there's good demand for vacation rental properties in Bangkok.
Interestingly, the majority of Airbnb properties in Bangkok are operated by individual and small hosts. 77% of Airbnb hosts have 1-5 listings, 17.83 % manage 6-20 vacation rental properties, and only 5.17 % list 20+ properties.
The average occupancy rate for Airbnb properties in Bangkok is 65% throughout the year, and the average daily rate (ADR) is $41. The annual revenue of a typical Airbnb host in Bangkok is $9,962.
Bangkok Vacation Rental Market Performance in 2022-2024
The Bangkok real estate landscape continues evolving, presenting challenges and opportunities for investors and homeowners. Let's take a look at the key Airbnb metrics to get a better understanding of how the Bangkok rental market was performing in 2022, 2023, and the first five months of 2024.
Average occupancy rate
The Bangkok vacation rental market experiences fluctuations influenced by seasonality. However, its impact is much lower than in other markets because the city enjoys a tropical climate, so daytime temperatures are over 30°C for most of the year.
The tourist high season runs from November to February when occupancy rates are at their highest. It's the most pleasant time of year weather-wise and a season of some of the top Thai holidays, followed up by the large Christmas and New Year festivities. The monsoon season (from July to October) is the quietest time for tourism.
The average occupancy rate in Bangkok from January to May 2024 was the same as during 2023, and it's much higher than in 2022. Comparing 2024 to 2023 and 2022, we see a significant growth of 10.17 % over two years. In February 2024, Bangkok saw the highest occupancy rate of 87%.
Average daily rate
In 2023 and 2024, average daily rates in Bangkok were higher than in 2022. ADRs in Bangkok have increased by 17.14 % over two years. In January and December 2023 and in January 2024, Bangkok saw the highest daily rates of $43.
Revenue
The 2023 monthly revenue was higher each month than that of vacation rental hosts in Bangkok in 2022, except in October and December 2023, when the revenue was lower. In January, March, and April 2024, hosts in Bangkok earned less each month than they did during the same month in 2023. However, in February and May 2024, monthly revenue ($1,144 and $778) was higher than in February and May 2023 ($1,051 and $643).
The highest monthly revenue for an Airbnb property in Bangkok reached up to $1,168 in December 2022, which can be explained by high occupancy rates and ADRs. In general, the Bangkok Airbnb rental market saw an increase of 26.39 % in annual revenue over two years.
Final Thought
Data shows that Airbnb shares are low in Bangkok compared to other US and European cities. Yet the number of Airbnb listings available in this city of Thailand proliferated in 2023/2024, and the demand for Airbnb grew even faster. So, the Bangkok vacation rental market, which relies heavily on international tourists, also saw a high growth in occupancy rates.
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