The rise of short-term rentals has fundamentally altered the hospitality landscape, but perhaps nowhere is this transformation more significant—or under appreciated—than in its impact on restaurant businesses.
Recent analysis of Australia’s market reveals how Airbnb guests have become a crucial revenue driver for dining establishments, representing a customer segment that behaves markedly differently from traditional tourists.
A $5.5bn restaurant market hidden in plain sight
In 2024, when Airbnb guests spent $16 billion across Australia, restaurants captured the lion’s share of their non-accommodation spending. At 34 cents of every dollar spent outside their rental properties, this translates to approximately $5.5 billion flowing directly to dining establishments—a figure that dwarfs many traditional tourism marketing efforts.
This spending pattern reflects a fundamental shift in how travellers engage with destinations. Unlike hotel guests who may rely on in-house dining options or resort packages, Airbnb guests actively seek out local culinary experiences. They’re spending an average of $320 per day over three-day stays, with restaurants consistently ranking as their top expenditure category outside accommodation.
The employment multiplier effect
The restaurant industry’s Airbnb windfall extends far beyond direct revenue.
Oxford Economics’ analysis shows that food and beverage services supported 25,100 jobs through Airbnb-related activity—the highest employment impact of any sector analysed. This employment effect generated $882 million in wages, making restaurants the third-largest beneficiary of Airbnb’s wage impact across the entire economy.
These figures underscore how short-term rental guests create employment opportunities that ripple through local economies. Unlike traditional tourism models that concentrate employment in large hotel operations, the Airbnb effect distributes job creation across numerous independent restaurants, cafes, and food service providers.
The regional renaissance
Perhaps the most significant implication for restaurant operators lies in the geographic distribution of this spending. The pandemic accelerated a shift toward non-urban destinations, with regional areas capturing 33.2% of Airbnb bookings in 2024, up from 29.5% in 2019. This four percentage point increase may seem modest, but it represents hundreds of millions in additional spending power for restaurants outside major metropolitan areas.
For regional restaurant operators, this trend has created opportunities that previously didn’t exist at scale. Coastal towns, wine regions, and rural destinations that once saw sporadic tourist activity now host a steady stream of short-term rental guests seeking authentic local dining experiences.
Host testimonials reveal the human connections driving this trend. Cathryn, who operates an Airbnb in the Illawarra region, actively directs guests to local restaurants and cafes. “So many of these local businesses have been positively impacted by this,” she notes, highlighting how hosts have become informal tourism ambassadors for their communities’ dining scenes.
Strategic implications for restaurant operators
The Airbnb effect requires restaurant operators to reconsider traditional assumptions about their customer base and marketing strategies. Short-term rental guests typically book accommodations well in advance but make dining decisions spontaneously, often relying on host recommendations, local discovery apps, or neighbourhood exploration.
This behavioural pattern creates both opportunities and challenges. Restaurants near popular Airbnb clusters may experience increased foot traffic without traditional advertising spend, but they must also be prepared for fluctuating demand patterns that don’t align with conventional tourism seasons or hotel booking cycles.
The data suggests successful restaurants in Airbnb-dense areas should focus on online visibility, positive reviews, and building relationships with local hosts who serve as informal concierges.
The most successful establishments often become integral to the Airbnb experience itself, with hosts specifically recommending particular restaurants as part of their property’s value proposition.
The evolving ecosystem
As the short-term rental market continues to mature, its relationship with restaurants is likely to deepen. The $20 billion total economic impact Airbnb generated across Australia in 2024 represents just one platform in an expanding sharing economy ecosystem.
For restaurant industry leaders, the key insight isn’t simply that Airbnb guests spend money on dining—it’s that they represent a fundamentally different type of customer with distinct behaviours, preferences, and booking patterns. Understanding and adapting to this customer segment may well determine which restaurants thrive in the evolving hospitality landscape.
The data clearly shows that short-term rentals and restaurants have become symbiotic partners in the modern travel experience, each amplifying the value proposition of the other. For an industry that has faced unprecedented challenges in recent years, recognising and leveraging this relationship represents a significant growth opportunity hiding in plain sight.
