Case study
The Future of AirbnbMade in Sydney
Sydney has a forward-thinking environment that’s conducive to growth and growth companies
like Airbnb. Sam McDonagh, Airbnb Country Manager for Australia and New Zealand
Airbnb vastly grows its Australian business through Sydney
Airbnb’s presence in Sydney has helped it reach 148,000 Australian
property listings and more than 5 million guest arrivals in Australia.
Airbnb first set up an office in
Sydney in 2012 to attract more
Australian hosts and guests to its
platform. Back then, the home-
sharing company only had about
5,000 Australian properties
listed on its site. Now it boasts
more than 150,000 local listings
and in 2017 it welcomed more
than 5 million guests to stay with
Australian Airbnb hosts.
Australians have become some of
the most active users of Airbnb,
according to Sam McDonagh, the
company’s Country Manager for
Australia and New Zealand.
“Australia is the most penetrated
market for Airbnb,” says
McDonagh. “Australians
account for the largest
percentage of bookings made
on our platform globally.”
Airbnb’s presence in Sydney
has played a key role in this
success by giving the company
an opportunity to amplify its
message, says McDonagh. The
company doesn’t establish an
office in every country where
it has listings, but it decided to
in Australia, given the country’s
importance to its business.
Fast facts about Airbnb
Originated in
San Francisco, California
Has one Australian office,
located in Sydney’s
Surry Hills
The world’s best-known
home-sharing company
Has property listings in
81,000 cities and
191 countries
A natural choice
Sydney is the heart of the
Australian Airbnb community,
making it a natural choice
for the company’s office,
according to McDonagh.
New South Wales (NSW)
represents about one-third of
Airbnb’s Australian business with
more than 57,000 listings—and
Sydney accounts for a large share
of that. Since 2015, Sydney has
ranked in Airbnb’s global top
10 cities, based on the number
of listings and users.
The company also appreciated
Sydney’s in-depth expertise in
the travel industry and online
marketplaces. “Sydney has a
forward-thinking environment
that’s conducive to growth and
growth companies like Airbnb,”
says McDonagh.
The ability to access the best and
most diverse talent was another
reason for the company’s choice.
“Sydneysiders speak more than
275 different languages and
about a third of NSW residents
were born overseas,” says
McDonagh. “These really play
into Airbnb’s commitment to
diversity and belonging.”
The one thing that we see is that Sydney and NSW understand that they need to create the right environment to fully nurture innovation and
good ideas. Sam McDonagh, Country Manager for Australia and New Zealand
Creating the right environment for business
Airbnb has benefited from the NSW Government’s effort to create
a conducive environment for home sharing and its holistic approach
to innovation. McDonagh cites the introduction of fair, new home-
sharing rules as an example of this kind of approach.
The NSW Government has
introduced new statewide rules
for short-term holiday letting
that are designed to ensure
local families and communities
continue to benefit from the
activity, while protecting
neighbours from anti-social
behaviour.
According to McDonagh, the
NSW Government engaged all
sectors and stakeholders of the
home-sharing community before
it drafted the rules. “As a result
of that engagement, we felt that
the NSW Government has come
up with a really good model to
allow home-sharing to continue
to flourish.”
McDonagh believes the new rules
demonstrate that NSW embraces
tourism and innovation. They
also provide clarity for Airbnb’s
business and certainty for its
host community to continue to
operate in NSW.
“As a business, certainty and
clarity are what we want,”
says McDonagh.
The NSW Government also
supports the introduction of
innovative products and services.
Through its Sydney office, Airbnb
has launched the platforms
Airbnb for Work and Airbnb
Experiences to provide visitors
and businesses more options
in their accommodation and
activities in Australia. Airbnb
for Work provides bookings
for business trips, while Airbnb
Experiences offers activities like
tours that locals design and lead.
“The one thing that we see is that
Sydney and NSW understand
that they need to create the right
environment to fully nurture
innovation and good ideas,”
says McDonagh.
Working with the NSW Government
Airbnb looks forward to continuing to work with the NSW Government to develop that kind of environment and ensure that NSW remains an attractive place for visitors and events.
“Whether it’s in terms of encouraging events and businesses to come
to Sydney and the rest of NSW, or attracting visitors from overseas
and other parts of Australia, I think there’s a significant opportunity
for the NSW Government,” says McDonagh. “And we look forward to
supporting that in whatever capacity in the future.”
Learn moreThe NSW Department of Industry can assist businesses looking to invest in the Tourism and Technology sectors by providing market intelligence, information on investment opportunities, support for business case development and connections with government contacts and the local business network.
Contact the NSW Government’s Industry, Trade and Investment team by visiting invest.nsw.gov.au
TheFutureMadeHereT: +61 2 8222 4888
W: invest.nsw.gov.au
© State of New South Wales through Department of Industry 2019.
The information contained in this publication is based on knowledge and
understanding at the time of writing (February 2019). However, because of
advances in knowledge, users are reminded of the need to ensure that the
information upon which they rely is up to date and to check the currency of
the information with the appropriate officer of the Department of Industry
or the user’s independent adviser.
PUB19/22
