Colombia is the Latin American Country With the Third Largest Airbnb Profits

Colombia currently ranks 24th in worldwide Airbnb profits, with Medellin, Bogota, and Cartagena being the most booked destinations in the country. Through 2023, Colombia generated 436 million US dollars in profits with Airbnbs short-term rentals, and was only behind Brazil and Mexico. 

These numbers were presented by All the Rooms, a company that specializes in collecting and organizing short-term rental market data. Additional data presented in the report established that North America, Europe, Pacific Asia, and Latin America are the most sought-after regions for this kind of tourism. 

Among Latin American countries, only Brazil and Mexico could crack the global top ten list. They ranked at #8 and #9 respectively. Colombia, the third-best in the region, was only ranked at #24 and Costa Rica, the fourth-best in the region, ranked at #25. The good news however is that both Colombia and Costa Rica ranked above average in short-term rental growth. 

The most profitable Colombian cities during the last year were Medellin, Cartagena, Bogota, Santa Marta, and San Andres. According to the company, the average Airbnb rental in Colombia is USD$75  and the country has almost 85,000 properties currently listed on the platform. These listings translated into 5.7 million booked nights during 2023. 

How does Airbnb challenge the hotel and hospitality industry in Colombia?

The tourist accommodation sector has witnessed a substantial 16.9% increase in rates between 2022 and 2024, according to Cotelco’s 2024 Hotel Operation Survey. This surge has notably created a new competitive landscape for traditional hotels. Their average rates in 2023 reached US$86. On the other hand, the average for vacation rentals offered on internet platforms was slightly lower, standing at US$75.

At the third Lodging Sector Convention in Bucaramanga, Cotelco President José Andrés Duarte underscored the need to examine the near US$10 price difference and how formal hotels face higher operational burdens without adequate compensation.

“The nearly $10 price difference is not compensated for by better amenities and services offered by traditional hotels,” remarked Duarte, advocating for a thorough examination of the challenges faced by the traditional industry in the face of emerging internet platform options.

An analysis of nominal vacation rental rates revealed that cities like Medellin and Cartagena lead the increase with 33.1% and 13.7%, respectively, between March 2022 and March 2024. These figures highlight the sector’s dynamism in key urban areas and its impact on Colombia’s economy.