Opposed to traditional vacation rental markets, Austin offers a unique position for prospective Airbnb hosts. The benefit of the Austin market lies in its ability to attract a steady stream of regular visitors coupled with ancillary event demand that drives revenue up for hosts. With a vibrant array of events throughout the year, Austin's Airbnb hosts experience peak seasons that drive their revenue to soaring heights. In particular, the month of October is huge for Austin airbnb hosts as two of Austin’s most popular events occur in this month. Among these events, three stand out as the pinnacle of Austin's cultural calendar: South by Southwest (SXSW), Austin City Limits (ACL) Music Festival, and the Formula 1 (F1) Grand Prix.
SXSW
Each March, Austin transforms into a mecca for tech enthusiasts, filmmakers, musicians, and creatives from around the globe during South by Southwest (SXSW). This multifaceted event encompasses interactive media, film, music festivals, conferences, and showcases. With attendees numbering in the hundreds of thousands, the demand for accommodations skyrockets, presenting a golden opportunity for Airbnb hosts.
The areas of downtown Austin, South Congress, and the East Side experience the most significant surge in demand during SXSW. Proximity to the Austin Convention Center, where many of the key events take place, makes downtown rentals especially desirable. Additionally, the vibrant nightlife and cultural hotspots scattered across the East Side appeal to SXSW attendees seeking a taste of authentic Austin.
The typical renters during SXSW are a diverse mix of professionals, artists, and music enthusiasts. They seek accommodations with proximity to event venues, high-speed internet for work and streaming, and unique amenities that reflect Austin's eclectic charm. Many corporations are also seeking rentals where they can host events, and if your rental can accommodate such requests you can really capitalize on a massive revenue boost.
Many local hosts have complained about declining SXSW revenue in recent years. The truth of this is that there is an increased supply of available Airbnbs in Austin. If you’re outside of the hot spots, you are unlikely to see a substantial increase in revenue from SXSW. Furthermore, as a new host, it can be challenging to book a high dollar SXSW reservation. The most lucrative SXSW bookings are typically made months if not years in advance.
ACL Music Festival
As the fall breeze sweeps through Zilker Park, Austin welcomes the Austin City Limits (ACL) Music Festival, a two-weekend celebration of live music spanning genres from rock and pop to hip-hop and electronic. With headliners that draw music lovers from all corners of the country, ACL Music Festival injects energy and revenue into the city's Airbnb market. Last year, the festival drew in nearly half a million visitors over the two weekends!
Hosts in close proximity to Zilker Park and the Barton Springs area experience the highest rate hikes during ACL. Visitors prioritize convenience, aiming to minimize travel time between their accommodations and the festival grounds. Rentals with spacious yards or nearby green spaces attract groups looking to unwind between performances or host pre-concert gatherings.
ACL Music Festival draws a diverse crowd of music aficionados. Airbnb listings with flexible sleeping arrangements, such as multiple bedrooms or sofa beds, cater to groups attending the festival together. Additionally, amenities like outdoor grills for post-concert cookouts or cozy fire pits for late-night storytelling enhance the ACL experience for renters.
Formula 1 Grand Prix
In late October, the Circuit of the Americas becomes the focal point of global motorsport as Formula 1 (F1) enthusiasts flock to Austin for the Grand Prix weekend. The high-octane event, featuring thrilling races and star-studded entertainment, ignites demand for accommodations across the city.
Hosts in South Austin and near the Circuit of the Americas command premium rates during the F1 weekend. However, proximity to the racetrack is not as important for attendees of F1 compared to other events. This is primarily due to the fact that as opposed to ACl or SXSW, the F1 track is located in an area with very few amenities aside from F1 at this time. For investors looking for areas with anticipated appreciation, the Del Valle area where F1 is located is not a bad idea for a long-term rental.
F1 Grand Prix attendees encompass a mix of racing enthusiasts, luxury travelers, and corporate groups. They prioritize comfort and convenience, seeking accommodations with upscale amenities such as hot tubs for relaxation after a day at the races or gourmet kitchens for preparing meals. Hosts who offer concierge services or arrange exclusive experiences, such as trackside viewing parties or luxury transportation services stand out in the F1 rental market.
Austin Airbnb hosts have ample opportunities to capitalize on the city's event-driven economy. From the creative chaos of SXSW to the melodic magic of ACL Music Festival and the adrenaline-fueled excitement of the F1 Grand Prix, each event attracts a unique audience with specific preferences and priorities. By strategically positioning their listings, offering tailored amenities, and providing exceptional hospitality, Austin's Airbnb hosts can unlock the full potential of these iconic events and elevate their revenue to new heights.
