1. Profits and Losses from the Sharing Economy
Mary Talk
November 14, 2018
Kashef Majid
University of Mary Washington
College of Business
A copy of this presentation is available from

2. https://youtu.be/-XSAqfK_UwY

3. The Sharing Economy
“There are 80 million power drills in America that are used an average of 13 minutes... Does everyone really need their own drill?” (Brian Chesky – Co-Founder of Airbnb)

4. Size of the sharing economy
Estimated at $26 billion dollars in 2014
Since its inception in 2008 Airbnb hosts have earned more than $40 billion dollars through an estimated 300 million bookings worldwide
Airbnb hosted over 4 million listings in over 80,000 cities in 2017
By comparison, the Marriott Group, Hilton Hotels Worldwide, and the Intercontinental Hotel Chain had less than two million hotel rooms available worldwide in 2014

5. Humble Beginnings

6. The D.C market of Airbnb rentals
There were over 20,000 Airbnb listings in DC between and 2017, some properties are listed for a few months others are listed for a few years
At least 21 properties made over $100,000
Entire homes/ apartments were in the highest demand

7. Properties that earned the most between 2016 - 2017

8. Issues arising form Airbnb Rentals

9. Commercial Operators

10. Airbnb findings
Commercial operators price their properties at $8 less than non-commercial (equivalent) properties
Commercial operators achieve higher occupancy rates
Commercial operators can charge lower prices for higher priced properties
Lower priced properties in higher-end areas attract the greatest demand, this puts commercial operators in the best position

11. Airbnb and Regulation
In 2017, the General Assembly passed SB 1578 and added a new section, , to the Code of Virginia, which authorizes localities to adopt an ordinance to establish a short-term residential rental registry requiring the registration of operators offering short-term rentals of spaces in residential properties within the locality. 

12. University of Mary Washington
Thank You/ Questions?
Kashef Majid
University of Mary Washington
College of Business
A copy of this presentation is available from