Learn How To List Your Ultra Luxury Holiday Home In Cape Town South Africa
Cape Town homeowners with ultra-luxury homes want to attract wealthy guests. But how?
Today we will share Airbnb Lux Cape Town as an option.
Airbnb Lux is an exclusive program that only accepts homeowners with the most luxurious homes. The criteria are strict and include design, function, and amenities. If you’re looking for a management agency that rents out exclusive homes – this is it!
What is Airbnb Lux?
Airbnb Lux is the world’s most exclusive and luxurious homes on Airbnb.
You deserve to have your dream home become the ultimate destination for discerning travellers. People who expect the best and are willing to pay a premium. These Lux homes exceed all expectations and make guests feel like royalty. They’ve got everything from private pools to chef-grade kitchens so there’s no need to leave the house while you’re on holiday.
The homes are hand-selected; only the finest properties from around Cape Town – all with unique features that are sure to impress even the world’s pickiest traveller. And with 300+ qualifying criteria in both design and function, every home will not qualify!
Brain Chesky, CEO of Airbnb describes it as,
“a selection of the world’s most extraordinary places to stay.”
It’s all about exceptional houses and locations on Airbnb Lux. There is always a Trip Designer working at every lodging, ensuring that everything from restaurant reservations, excursions, and wedding planning is taken care of.
What Is An Airbnb Lux Trip Designer?
With Lux, you don’t contact the owner. No, you press a button to “contact a Trip Designer.”
A Trip Designer is appointed by Airbnb and works as a travel agent. When guests want to reserve you don’t get approved or “rejected”. Instead, you get connected to your dedicated Trip Designer.
The Trip Designer makes sure the location is the right fit for the guest’s needs. When a family is looking for a place, they want to be sure it’s kid-friendly. A handicapped person needs a first-floor bedroom to be accessible.
The Trip Designer is involved all along the way, they also arrange dinners, spa treatments, chefs etc. Read about privacy below.
Can Your Guests Trust Airbnb Lux?
When you pay $1 000 to $20 000 per night you need assurance that you will get what you pay for. Airbnb has credibility and the extra layer added by the Trip Designer must add trust.
Airbnb Lux properties do not display any reviews. As you may know; the number of reviews and quality of reviews is directly related to occupancy. If these Lux Homes had high occupancy they would have many guests wanting to brag about their stay. But none are shown. Is it a lack of occupancy issue or something else?
Which Homes Qualify For Airbnb Lux?
Airbnb Lux Cape Town owners need to ask:
Do I have a home with high ceilings, attractive art, and matching hangers in your closet? Simple! Airbnb wants what they call “socially enhancing spaces” – where everyone can see eye to eye and talk.
The dining room table should be big enough to fit everyone. Ideally, there should be enough room in the living room for everyone to sit around and watch a movie together. People can relax and talk outside in the gardens at different seating areas.
Does the air conditioning work? Are there enough pots and pans in the kitchen? Do bedrooms and bathrooms have a favourable ratio? Do you have extra pillows and blankets? Is there parking available?
There are many unique aspects to luxury homes, such as distinctive architecture, an entrance that makes a statement, or gorgeous landscapes.
Where is the home located, whether in a remote locale or one of Cape Town’s most prestigious neighbourhoods? Are guests going to have access to professional resources? A chef, shopping, tours and general event planner.
These are just some of the 300+ qualifying criteria.
Others include; picturesque geography, More on social interaction. For example; a summer kitchen is available with an alfresco dining area that includes comfortable outdoor furniture, a large table, and an outdoor courtyard. Do all your appliances work?
Did I miss some of the most important criteria? Yes. +300 considerations are many. But an important one to note is privacy. At Airbnb Lux properties, the host is not present.
Luxury-seeking guests often look for privacy when booking a luxury destination. In addition to the high profile property owners, many of these property owners want to keep their identities anonymous. And another reason why the Trip Designer does most of the communications.
What are the nightly rate ranges for Airbnb Lux?
Read this to see the top Airbnb Lux Cape Town Homes and others in South Africa.
From $1000 per night. And the most expensive Airbnb Lux? $20 000 (nearly R300 000 per night) or $1250 per person per night. With the most expensive Airbnb in South Africa at R225 540 ($15442) per night. But the nightly per person rate at Cheetah Plains is $1930.25 making this South African wildlife experience the most expensive place in the world.
Note: I am not sure if Airbnb Lux enforces the $1000 minimum per night as I have seen homes like this one at R6890 per night.
To get a feel for the experience at an Airbnb Lux read this Vogue article.
Are The Airbnb Lux Homes Making Money?
If occupancy is a measure of income then these Lux homes don’t make money. In most cases, their occupancy is next to zero. Have a look at the most expensive Airbnbs in South Africa and walk through their calendars; you’ll notice few to no reservations. (If full months are blocked out run forward and you’ll see open dates; all are open).
The only one with lots of reserved dates is Tarkuni, owned by the Oppenheimers. The question now is; are they paying guests or perks to friends of friends?
My opinion is that owners with Lux homes should experiment. Homes renting for less than R15000 during the low season is not ideal. You should make a bag full of money once or twice but don’t expect anything (you don’t really need the money). If you want a steady return on investment Airbnb Lux may not be ideal.
Should I list with Airbnb Lux Cape Town or Just Airbnb?
Let’s consider an example:
- You have a lux home at R40000 per night at 10% occupancy or less giving you R1.46 million gross.
- You go for the higher occupancy model; R15000 per night x 0.50% occupancy x 365 days per year gives you an income of R2.74 million.
- Let’s assume a nightly rate of R15000 at 0.267 occupancy x 365 days also giving you R1.46 million gross.
The advantage with Airbnb Lux is low occupancy as many owners don’t want high volume (occupancy) through their home. The risk with Airbnb Lux is what high rates may get some or no bookings. Again, if the owner is not interested in any income then experiment with high rates and low occupancy.
If the owner wants some form of income then reduce the rates and go for higher occupancy.
If the owner has a Lux Home (I am not talking about an island) and prefers a steady income then go for the standard Airbnb. Look at this example again:
- R15000 per night x 0.50% occupancy x 365 days per year gives you an income of R2.74 million
The occupancy is only 50%. As reviews increase occupancy increases. Let’s assume this home has more than 100 reviews; at 100 reviews occupancy can be as high as 80%. This will yield R4.38 million. Nearly R3 million more than Airbnb Lux. Let’s be ridiculous and say you spend R2 million on wear and tear. You still sit with R2.46 million or R1 million more than Lux.
The real question is: Do you want to generate money or do you want to take advantage of Airbnb Lux?
Note: Covid may be an issue. But why would it only be an issue for wealthy people and not the average Joe?
Summary Of Airbnb Lux Cape Town:
Lux is a curated marketplace for the world’s most exclusive properties and experiences. If you believe your luxury homes may meet the strict evaluation across 300+ criteria then we can assist: As you read the criteria includes: both design and function including elevated design standards, from premium materials & finishes and rare & unique features to spaces that accommodate groups, highly functional design, chef-grade appliances. Airbnb Lux is great if you expect to cater for high-end guests and have no steady income.
Obviously, Covid affected this market segment and it will be interesting to see what occupancy looks like in 12 months time.
Note: From my investigations, it’s clear that Airbnb Lux as an option is not disaster-proof. At least not long term disasters like Covid.
More Airbnb Lux Questions:
How many Airbnb Lux properties are there in South Africa?
There are 73 Airbnb Lux properties.
How many Airbnb Lux properties are there in the world?
Airbnb Lux launched with 4,000 homes in 100 destinations around the world. (More here)
What is the luxury version of Airbnb?
Luxury Retreats is now Airbnb Lux – providing the world’s best homes with the best service available. Choose from a selection of high-end, expertly designed homes with high-end amenities, services, and dedicated trip designers.
Is Luxury Retreats owned by Airbnb?
Luxury Retreats, a Montreal-based company, has been acquired by Airbnb in 2017.