Prince Edward Island is one of the most underrated provinces of Canada in terms of tourism. It is the eleventh province by the number of international trips, which is mainly caused by the lack of infrastructure the visitors could benefit from.
Nevertheless, it is the tenth province of Canada by population, and there are some destinations that are being actively developed and hold great potential for launching an Airbnb. There are many cities in Prince Edward Island that are worth considering for establishing an enterprise.
As always, it is important to research the locations properly before entering the market. In this article, some of the most beneficial cities will be reviewed. Most of them share similar market conditions: the competition there is almost non-existent, and the markets are almost untapped. There are very few short-term vacation rentals in these areas, so the performance data should be taken with a grain of salt: with a smaller sample, the data becomes less reliable.
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The first location on the list is Kensington, and it has multiple benefits for aspiring entrepreneurs. The city is situated in the middle part of Prince Edward Island, meaning it is not very far from the bridge, connecting the province to the mainland. What makes Kensington especially interesting is its unique location: it is relatively close to all the attractions the visitors of the province might be looking for. At the same time, it is not a huge population center, which allows its visitors to have a quiet vacation here.
At the time of writing, there are only six Airbnbs operating in this town, half of which are entire home listings. On average, they have five bedrooms and can accommodate up to 8 guests at a time. Some of the properties here are very luxurious, which significantly boosts the performance metrics of this town, which should be taken into account while considering this investment opportunity.
The Average Daily Rate here is a whopping $607, which is extremely high compared to other provinces of Canada. Oddly enough, the Occupancy Rates still manage to average 45% throughout the year, the main reason for that being the lack of other options the visitors of Kensington have. This allows local hosts to generate $4,111 worth of monthly Revenues, which is impressive for such a small town.
The second place in Prince Edward Island that is worth considering for an Airbnb investment is Borden Carleton. Just like with the previous city, the main benefit Borden-Carleton offers to its visitors is its location. The only bridge connecting the province to the mainland is leading right into this town, giving it the potential to become a hub for tourists who cross this bridge.
Investors who believe in the growth of the tourism industry in Prince Edward Island should consider Borden-Carleton as one of their main options, as the opportunity here is rather unique. The real estate prices in this town are still very low, and the competition is almost absent, meaning it is a perfect time to launch an Airbnb here and establish a positive reputation before it grows and more entrepreneurs enter the market.
Right now, there are only two short-term vacation rentals operating in Borden-Carleton. Both of them are entire home listings that have two bedrooms and can accept from two to three guests at a time. One of them is located in the residential area of the town, while the other one is operating next to the road that leads further into Prince Edward Island.
The Average Daily Rate in the area is $154, while the Occupancy Rates may jump from 5% to 100% throughout the year. Once again, as there are only two properties in the town, the data should not be considered reliable or very representative. The average monthly Revenue these Airbnbs make is $2,769, which is rather high.
Charlottetown is perhaps the only population center in Prince Edward Island that is going to be covered on this list. On top of that, it is the only city that already has an established tourism industry. Charlottetown is a historical city with many attractions for visitors who wish to discover the culture of the province.
The competition here is respectively intense, but the market is more stable than in any other city on this list. Essentially, launching an Airbnb in Charlottetown is less risky but the potential benefits are not as huge as in some other locations covered today. Most properties are located in the city center, so the competition in the other neighborhoods is not as severe.
In total, there are 260 Airbnbs that are currently operating in Charlottetown, and 78% of them are entire home listings. On average, a property in this city has 2 bedrooms and is capable of accommodating up to 4.3 guests at a time. Out of all these Airbnbs, 45% have selected a strict cancellation policy, so there are still some ways new market entrants can gain a competitive advantage here.
The Average Daily Rate in Charlottetown is $166, which is explained by the sheer number of Airbnbs offering their services here. The Occupancy Rate is 77% there, and the city is especially popular in summer. During these warm months, many of the properties are completely booked out here. The Revenues, generated by an average short-term vacation rental in Charlottetown is $2,256.
Cornwall, not to be confused with the town between Ottawa and Montreal, is also an interesting place in Prince Edward Island. It is located right next to Charlottetown, so it is already benefiting from the growing tourism industry of its neighboring population center, and the strength of this effect will only increase as Charlottetown continues to grow and develop. At the same time, the market in Cornwall is almost untapped, creating a great investment opportunity for aspiring entrepreneurs.
In total, there are only 14 active Airbnbs operating in this town, twelve of which are entire homes. The most popular cancellation policy here is moderate, as 50% of hosts have selected it. Choosing a flexible cancellation policy is a great way to gain a competitive advantage from the get go, and start building a reputation for the enterprise.
The Average Daily Rate here is $165, while the Occupancy Rates average 75% throughout the year. The Revenues, generated by an average vacation rental in Cornwall are $1,774, which is pretty decent for the province. Even though these performance metrics are not as reliable as in Charlottetown, the potential of Cornwall is clear: its vacation rental market grows by 44% every quarter, and the properties there are performing well enough to remain sustainable.
Summerside is another small town in Prince Edward Island that is worth considering for opening a short-term vacation rental. It is located relatively close to Kensington and shares some geographical benefits with it. The rental market here is larger than in many other towns mentioned on this list, although it is still very small on a country-wide scale.
At the time of writing, there are only 37 Airbnbs offering their services in Summersides, 30 of which are entire home listings. On average, they have 2.1 bedrooms and are capable of receiving 4.6 guests at a time. Only 33% of local hosts have selected the flexible cancellation policy, so choosing it might be a worthy idea to stand out.
The Average Daily Rate in Summerside is $140, while the Occupancy Rates average 69% throughout the year. An average property in this town generates $1,566 worth of Revenue every month. Much like with most other cities on this list, the largest portion of profits is made in summer.
Most vacation rentals are packing the southern part of the town, which is the most developed area in terms of infrastructure. Nevertheless, the competition there is not very intense, and there is still room for more Airbnbs in Summerside. The market has been facing a quarterly growth of 11%, so the town is clearly growing its tourism industry, and it is still not too late to join.
There are two towns named Souris in Canada: one of them is in Manitoba, and the other one is in Prince Edward Island. Needless to say, the latter option is going to be reviewed here. The town is situated in the eastern part of the island in a fairly remote location. It does not have a developed tourism industry, but some visitors still come here to get to some eastern attractions of Prince Edward Island.
Right now, there are only eight Airbnbs operating in Souris, five of which are entire home listings. On average, they have two bedrooms and can accommodate up to four guests at a time. Half of the Airbnbs have a strict cancellation policy here, so it is relatively easy to stand out at launch. The competition is very mild, as the properties are scattered all around the town’s area, meaning there are no large clusters of rentals anywhere in Souris.
The Average Daily Rate these rentals charge is $113, while the Occupancy Rates stay at the level of 67%. Expectedly, most visitors come to Souris in summer, and the demand in winter is rather scarce. Even though it is a small town in a remote location, local hosts still manage to earn $1,351 worth of Revenue every month.
Of course, the data sample is rather small, but it makes it clear that local properties are doing pretty well. The main benefit Souris has to offer to investors is the low real estate prices. Taking into account the performance of local Airbnbs, reaching the breakeven point in this town might be easier than with most other destinations covered on this list, which makes Souris a decent investment opportunity for lucrative entrepreneurs.