The saturation of Airbnbs in Wagga is having an effect on the accommodation market, raising doubts about the future of traditional bed and breakfast lodgings.
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Wagga’s Central Boutique B&B and Temora’s Courthouse Cottage are among some B&Bs for sale, as well as motels like the Peter Street Serviced Apartments, the Junction Motor Inn and the Garden City Motor Inn.
Former owner of Best Street Bed and Breakfast Leonie Potter sold her business in June to a family who loved the residence but did not wish to continue the B&B.
“My bed and breakfast was in a fairly niche market because I offered fully cooked breakfasts and there was nothing else like it,” Ms Potter said.
“My B&B was one-of-a-kind with the service that was provided and it wasn’t impacted by other hotels or B&Bs because it was basically full occupancy all the time, which is why it became too much for me.
“It was just a lifestyle change for me, I wanted to retire and the new owners loved the house and chose to use it as a residence.”
Business broker Peter Campbell said the appeal of running a B&B has changed and could be influenced by a few factors.
“Airbnbs are becoming more active than they were in the past,” Mr Campbell said.
“There’s also about 600,000 registered caravan owners in Australia and we see this at Wilks Park, which means another disposable income is no longer going to motels.
“Booking sites like Booking.com and Expedia increase a lot of traffic but have in some ways replaced the chain-type situation.”
Mr Campbell said despite these changes it is still a “good industry” that is only experiencing a down period.
“I don’t think we’re seeing a trend, it’s just a bit quiet at the moment and the market has changed,” he said.
“The International Hotel has an extension proposed and we’re working on a sale in Wagga at the moment that has good occupancy rates.
“I think this is only temporary and there are more motels being built, like a proposal of units next to the Rules Club.”
Garry Cocks and Jone Pavelic are owners of the Courthouse Cottage in Temora and are looking to sell the front part of their premises.
“We bought the property five years ago and it was originally a B&B, but we closed it down because it needed so much work and it was a matter of putting a lot of money into it before we began operating it,” Mr Cocks said.
“We opened Courthouse Cottage in August 2015 and we’re number one on TripAdvisor and it’s a five-star property.”
The couple lives on the premises and are hoping to sell the guest quarters in the front part of the house.
“We’re simply listing it as we’ve spent a lot of money and we did a huge extension out the back, with two rooms, ensuites, a formal lounge and dining and we’re hoping to just put the guests into the front part of the cottage,” Mr Cocks said.
“We just decided to list it to see if there was any interest and that’s all we’re doing at the moment.”
Mr Cocks said they decided against listing their property on Airbnb, but are using booking sites like Expedia to increase trade.
“We have our own website and booking system as well as the umbrella of booking sites associated with Expedia,” he said. “Expedia without a doubt has increased traffic and we’re getting a lot of bookings through TripAdvisor.
“Booking sites like Hotels.com and Wotif have certainly helped our booking pattern, but we would never list our cottage on Airbnb, I think that site leaves a bad taste in people’s mouths.”
The owner and manager of Peter Street Serviced Apartments, who did not wish to be named, acknowledged the challenges of solely operating her business through word-of-mouth.
“My business is only tiny and I’ve made enough contacts over the years for it not to suffer too much, but technology has to an extent and that is probably one of the biggest challenges,” she said.
“I’m not interested in attracting clientele from big multi-national agencies like Hotels Combined.
“Because I have no idea who they are and I like to have personal contact with who stays, but I’ve been running this business for 15 years and I’m well and truly ready to retire.”
A ‘hobby’ to Airbnb host
The rise of the Airbnb market is creating congestion not only affecting hosts but also putting a strain on bed and breakfasts that are struggling to sell.
The Central Boutique Accommodation B&B on 58 Gurwood Street has been on the market for a while, with agents planning to change the marketing strategy in a bid to increase interest.
The late 1800s B&B has dropped $50,000 and is listed for $1.15 million by two real estate agents, Wagga’s PRD Nationwide and RE/MAX Elite.
RE/MAX Elite agent Christa Lindsay said they have taken the business side away from the listing and are aiming to also sell it as a private residence.
The owner of Samsonny Cottage, Troy Beggett, said he first listed his property with Airbnb 18 months ago and the platform has almost doubled.
“I think there were about 80 Airbnbs in Wagga when I first started and now there’s 152 and I’ve noticed a slowdown in bookings, because a lot of people are now doing it,” Mr Baggett said.
“People who own the B&Bs may be selling because it’s their only income and the saturation of Airbnbs may have impacted their bookings.
“I couldn’t live on the income I get from my Airbnb, so I still work full time, and my partner Juliet and I run Samsonny Cottage as more of a hobby than a lucrative income stream.”
Mr Baggett’s partner Juliet said running the Airbnb is “quite a lot of work” and could also be a reason why people are selling.
However, Brendan McMartin, who has connections in the hospitality industry, said Wagga still needs a range of accommodation during peak periods.
“Major events like the Gold Cup are still booking everything out and so it’s always good to have options available that suit different budgets,” he said.
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