Its rugged coastline, mountainous National Parks, colourful market towns, award-winning beaches, historic castles, and of course, not forgetting its distinctive Welsh language makes Wales a popular destination in the UK among visitors. It is also home to four UNESCO World Heritage Sites- North West Wales Slate Landscape, Castles and Town Walls of King Edward in Gwynedd, Blaenavon Industrial Landscape, and Pontcysyllte Aqueduct and Canal.
In 2019, before the pandemic, Wales welcomes over 1 million international travelers each year, 87.3 million day visits, and just under 10.7 million overnight domestic trips that contributed to the local economy. Moreover, the occupancy levels for hotels, self-catering homes, and holiday parks were encouraging.
Furthermore, Wales seems to never disappoint with its views of the local countryside, its locally produced food and drinks at cozy pubs, cafes, and restaurants, discovering new cultures and old traditions; and known for its friendly community- more reasons for families, couples, backpackers, etc to visit this ideal destination!
That said, to help you expand your Airbnb business in Wales, this article highlights:
Holiday homes offer hosts the opportunity to earn a higher monthly rental income compared to traditional renting. For example, if you choose to rent your holiday home long-term for £1000 a month. In a year, your holiday home will generate a rental income of £12,000.
However, with the same holiday home, choosing to rent short-term for £170 a night. In total, if say the holiday home is booked for 180 nights, you'll generate a rental income of £30,600. Though, keep in mind that your holiday home will not achieve a 100% booking rate- a risk that comes along with it.
If you look at traditional renting, rates are set according to the existing market conditions. Moreover, an increase in monthly rates is generally governed by local laws and regulations.
Holiday homes, on the other hand, allow you to adjust and set your nightly rates based on the demand or during peak seasons which offers more flexibility in deciding a rate you want to charge daily. Though, keep in mind that rates need to be competitive.
Furthermore, listing holiday homes on Airbnb gives the hosts the flexibility and freedom to block periods they choose not to list their property, what days can guests book, and for how long.
In general, investing in Airbnb doesn't mean you need to be actively involved to generate income. This means that keeping guests entertained or being present with the guest is not necessary.
Simply listing your holiday home on Airbnb and maintaining your properties in great condition allows you to earn a passive income which is a great way to boost income from your current job or other businesses. Not to say, you must not put the effort into starting your Airbnb business or that your Airbnb income is 100% passive. Although, you can opt to hire a property manager to handle and manage all business operations.
The perks of investing in an Airbnb holiday home that most property managers or owners may not be aware of are the tax benefits that have a huge effect on your cash flow.
That said, hosts can maximize their profits by deducting expenses such as advertising and marketing, insurance, and other tax deductibles depending on the laws as it varies from county to county.
Moreover, to determine if you are eligible for tax deductions, seek out a tax professional consultant.
Location, location, location- a golden rule to real estate investment. Before you can enjoy the success of your holiday home, nailing the right location for your Airbnb is your utmost priority. Although, the demand for holiday homes continuously grows in Wales, keep in mind, that the strong demand for holiday homes can only be enjoyed in the right area.
In short, holiday homes located in proximity to attractions, sights, business hubs, academic institutions, major events or venues, or airports are ideally the best Airbnb market for investing, and attracting tourists or business travelers alike.
Moreover, the best Airbnb markets that receive travelers all year round and are close to tourist hotspots such as beaches, parks, museums, mountains, and hiking trails tend to offer higher occupancy rates.
It is important to invest in a location where there is low competition for holiday homes, especially when starting an Airbnb business.
Put it this way, areas that have strong competition such as big cities or a high number of Airbnb may take you longer to enjoy an occupancy rate that's higher than the average and generate profits. As a result, may compel you to have lower nightly rates.
Thus, look out for mid-sized counties with a low supply of holiday homes with high demand.
When doing your research and analysis for your Airbnb, consider the area's peak and off-peak seasons. Holiday homes that are vacant for a long period will cause more losses than profits.
That said, your Airbnb must be located in an area/county where visitors are all-year round. It may not always be the case but ensure to look out for holiday homes that allow you to potentially earn cash flows during the off-season.
Although the location may contribute halfway to your Airbnb business success, do not overlook the local holiday home laws and regulations. Due to the constant overflow of holiday homes affecting local housing communities, some cities or counties have either banned Airbnb or imposed strict laws that may lead to significant losses due to fines for investors.
That said, it is important to know and understand the local laws and regulations that may affect your profit margins and look out for areas that allow more freedom when it comes to investing in an Airbnb business.
Generally, travelers prefer staying in holiday homes that are accessible to public transport, restaurants, gym, and shopping centers. That said, invest in holiday homes that offer guest convenience over other holiday homes in the area.
Rental comps are comparable properties that are alike to the property you aim, for before purchasing. That way, it sets up a benchmark for whether a property is performing and if there's a demand for Airbnb in the area. The following characteristics include:
In northwest Wales, Gwynedd is popular for its Welsh folklore tale-tell of Llywelyn the Great and has become a popular tourist destination for those wishing to visit the 'grave'. And did you know the name Gwynedd means white, happiness, and blessed?
Gwynedd drew an estimated 20.1 million overnight stays, in 2019. Not to forget, it boasts an array of sandy beaches, a rugged coastline, adrenalin activities or the great outdoors, and the Snowdonia National Park.
The Blue Lake, Fitzzcarraldo, Llechwedd Caverns Trampoline Park, Ash Dome, Penrhyn Castle, and more are among some of the places to visit.
In the Southwest of Wales, Pembrokeshire is arguably no doubt home to numerous attractions from breathtaking landscapes to historic castles and fortresses, and not to forget the best beaches in the UK.
Between 2017-2019, over 7 million tourists visit the county each year, known to be a magnet for walkers, nature lovers, families, and foodies. It is safe to say, Pembrokeshire is worth the visit no matter what the weather is, there are always fun-filled activities and attractions to keep visitors entertained.
Powys sits in the county of east-central Wales and is by far the largest county, surrounded by its rugged landscape of valleys and mountains, known for its appealing attractions and activities. Do not overlook this county as it surprises you with its craggy caves and quirky towns.
Among the attractions that draw visitors are Offa's Dyke, Elan Valley, Brook Street Pottery & Gallery, Lake Vyrnwy, and more.
Cardiff is the capital and largest city of Wales, not only known as the "City of Castles" but as the "City of Arcades". It is one of the popular destinations and historic cities in the UK offering travelers a thrilling adventure with its museums, innovative restaurants, modern-day shopping centers, and its tremendously friendly community.
Moreover, the city is also known for being lively attracting millions of tourists each year with its well-known Castle that stood for nearly 2,000 years. But apart from that, it is a great location for sports, abundance of theatres and art galleries, all waiting to be revealed.
Average Daily Rate - £127 Occupancy Rate - 65% Revenue - £1,755
Conway formerly known as Conwy is one of the popular destinations across the UK. In 2018, it welcomed over 9.78 million visitors generating income for its local economy. Also, known for its rich history, much of it is still preserved within the walls and buildings, surrounded by lush Welsh countryside and watched over by the mighty mountains of Snowdonia, Conwy is the most beautiful place to be.
Not only does Conwy grab the attention of visitors with its stunning medieval castle but it also offers fine dining restaurants, snug cafes, and traditional pubs throughout the town. Considering how small the town is, there is plenty of activities and attractions from sandy beaches, wildlife watching, and historic castles to walks around the river.
Average Daily Rate - £121 Occupancy Rate - 81% Revenue - £2,217
Swansea is the birthplace of Dylan Thomas, poet and writer, well-known for his works "Do not go gentle into that good night" and "And death shall have no dominion". It is the second largest city and county on the south coast of Wales drawing tourists to its historic market with over 100 stalls, legendary nightlife, and culture.
In 2019, according to Swansea Bay Survey, the city welcomed 4.79 million visitors, and among them enjoyed tourist attractions from Swansea Museum, Glynn Vivian Art Gallery, Three Cliff Bay, Gower Peninsula, and more. the city offers hidden gems just waiting to be unraveled.
Located in the southwest of Wales nestles a beautiful county town known as the 'Garden of Wales' in Carmarthenshire. It is home to the National Botanic Garden of Wales which boasts diverse landscapes from breathtaking mountains to secluded ancient forests and sandy beaches.
In 2019, it drew over 3 million visitors to explore its local adventure including cycling, attractions, and shopping centers. But what's great about Carmarthenshire is its history, stunning castles, and picturesque rivers. Today, it thrives as a popular destination, finding magic in its art and crafts to its local delights.
On the northwest corner of Wales lies the Isle of Anglesey surrounded by its outstanding natural beauty and backdrop of the mountains of Snowdonia. Also, in the Middle Ages, Anglesey was known as the ‘breadbasket of Wales’ due to its abundance of fertile land that literally filled the breadbaskets of the inhabitants of North Wales.
This popular destination is known to be one of the tourist hotspots in the UK among travelers. It welcomes over 1 million overnight visitors every year and is easily accessible from Conwy and Llandudno, offering visitors an exciting place to be.
Moreover, travelers are drawn by its endless tourist attractions and activities from the best pubs to its historical ancient monuments, Beaumaris Castle, Menai Suspension Bridge Viewpoint, Wales’ longest place name, and so much more.
Average Daily Rate - £130 Occupancy Rate - 83% Revenue - £ 2,227
Located in the North East of Wales draws attention to its oldest known habitation point, which was once one of the famous seaside resorts across the UK in Rhyl. Though, do not overlook this historical town as it offers plenty of unique experiences to travelers from its fascinating surroundings to its quirky and hospitable destination.
Whether it is hiking or cycling or simply exploring Denbighshire's attractions, the city caters to every kind of taste, no matter how niche it will be. Among the attraction include The Burgess Gate, Dyserth waterfalls, St Dyfnog's Well, The Sugar Plum Tearoom, Bod Petryal Lake, and more.
In the southeast of Wales, nestles breathtaking views of rolling hills and valleys, the magical Forest of Dean, or the Brecon Beacons. This small town no doubt brings out its personality and friendly community that welcomed 2.28 million visitors in 2019, resulting in a contribution to its local economy.
Moreover, it is known for being a lively market town, perfect for weekends away to escape the hustle and bustle of city life and breath the freshness of the countryside. And if you are a buff of old castles, monuments, festivals, wine, horse racing, and more, definitely Monmouth is the place to be.
Don't forget, Monmouth is the food capital of Wales receiving Michelin-starred restaurants, award-winning gastropubs, and food festivals that draw some of the biggest names in the culinary world.