Many buy-to-let landlords who own properties in London took advantage of their assets by renting out their homes on a short-term let over the festive period.
Airbnb calculated that guests spent on average £230 a night and based on around 100,000 guests staying in a spare room or home booked through the website from 22nd December to 2nd January that equates to about £23m in just 12 days.
The majority of users in the capital were made up of American tourists, figures from the holiday home website show.
Airbnb is helping thousands of landlords secure rentals every week, prompting concern among some Londoners that an epidemic of bookings is changing the character of some popular neighbourhoods in the capital.
London has seen the biggest jump in the number of individuals advertising property on Airbnb in recent years.
The sharp rise in the volume of landlords with Airbnb listings reflects the continued commercialisation of Airbnb in London, as is the case across a number of major European cities, according to research from Colliers International.
Colin Hall, head of London Hotels for Colliers International, believes that now more than ever, regulation is needed to manage this growing platform to ensure a “fair playing field for hoteliers and landlords alike”.