Airbnb Profitability Differentiators Questionnaire: Answers For Not So Correct Choices
Do You Want A Very Profitable Airbnb?
Airbnb Profitability Differentiators:
Pricing strategy is a key factor in the profitability of Airbnb accommodations. When guests “buy on impulse,” they are more likely to be swayed by emotional factors such as the unique features or “wow” factor of the property. These emotional reservations can be more profitable for hosts because guests will pay a premium for a one-of-a-kind or exceptionally high-quality experience.
Guests who are budget conscious and make reservations based on logic may be more price sensitive and less likely to pay a premium. These guests may be more focused on finding the lowest price available, rather than seeking unique or high-quality experiences. As a result, hosts who compete solely on price may struggle to attract these emotionally driven reservations and may see lower profits.
Overall, it’s important for Airbnb hosts to differentiate their accommodations and focus on creating a unique and high-quality experience for their guests. By doing so, they are more likely to attract emotionally driven reservations and command higher prices, leading to increased profitability.
Guests either go WOW or they look for bargains. Wow, Airbnbs are few. Draggers (budget) are plenty and more get added daily. Where do you want your Airbnb to feature? Amongst the Wowners or Draggers?
Airbnb Profitability Differentiators: How Unique Is Your Airbnb Home?
A nice Airbnb home can do well. An excellent home can do better. But an exceptional can double your income. If, for example, you are on the beach, or your home is instagramable, with fine furnishing and fittings, you’ll do very well – guests are looking for UNIQUENESS.
The same place at the same location with a pool or hot tub may even do twice as well. (Assuming you have no pool or tub). The same is true for the level of luxury. Never be the norm of ordinariness. With all the owners flocking to Airbnb, excellent is the norm. The choice for guests in the norm-range is too many. Make it unique. Spend money on the interior (colours and all).
Small Airbnb’s Have Nowhere To Hide And I Hate Boring! Guests Too!
A small place has many disadvantages. Especially apartments. They compete with many Airbnbs on the market. Obviously! There are many one bedroom and two bedrooms on Airbnb. You are stuck with your location. You may have limited space, maybe not a garden. All these limitations should not stop you from making it UNIQUE.
There is an interior to play with. You have linen. You have lounge furniture, a kitchen, and bathrooms. Old kitchens and bathrooms are bad. Get some colour in the place. Spend money and get clever with interesting walls. Never underestimate clever features.
If your Airbnb is boring, you’ll wonder why the return is so bad. I hate boring!
Get Some Interior Inspiration! (Arty here, and Classy here).
Airbnb Profitability Differentiators: How many bedrooms do you have?
One and two bedrooms are relatively expensive to manage. The turn over-cost for a one-bedroom or two-bedroom is not much different from a 3 even bedroom. The major difference is the cost of changing linen and new essentials. One and two-bedrooms can work if they are EXCEPTIONAL. We manage a single bedroom, a penthouse with a pool in Cape Town. It’s doing a lot better than a few 3 bedrooms (no pool).
Do You Have A Pool or Hot-Tub At Your Airbnb?
Research shows a (wood-fired) hot tub can double an Airbnb’s income. To spend R80000 and pay it easily and quickly makes sense. If you don’t have a pool or hot tub and you have space for a hot tub, get one. Having a pool VERY well integrated with the entertainment area sells. If the pool is (solar) heated, the better.
What About A Shared Pool? JUST Okay!
A shared pool never carries the same premium as a private pool or private hot tub. Not close. A one bedroom can share – if you must. But a 6 or 8 or more sleeper home should have a private pool or hot tub. Our pretty two bedroom Airbnb’s with a pool generate twice as much as two bedrooms without a pool (similar areas). Yes. We have one three bedroom with a pool doing much better than our 4 bedrooms with no pool. And even better than those 4 bedroom Airbnbs with a shared pool.
We have a lovely 8 sleeper with a shared pool. The home lags – it books out slowly. It should not. It’s too pretty, with a classy interior. But premium guests have money. They want to pay for the privilege of being private. To entertain around the pool. Give them a private pool (hot tub) and you can demand a premium.
Wood Fired Hot Tub
For South Africa hosts, I suggest a wood fired hot tub. No worries about Eskom. And the guests pay for wood as they use the hot tub. As I mentioned, a 4 seater wood fired hot tub in SA is about R80 000 (2023). This small one would be ideal for a one bedroom.
How Far Are Your Airbnb Home From The Beach?
Obviously, the distance away from the sea affects income. The same house on the beach will demand bags more than the same home further away. If you are 300 or further, you’ll make less than the ON THE Beach home.
Is Your Airbnb’s No. of FULL Bathrooms Equal To Or More Than Your No. of Bedrooms?
It’s not a train smash. And you cannot do a lot about. But, let’s say, you can sleep 8 adults, which of the lessor egos will sleep in the room without a dedicated private bathroom? If you have fewer bathrooms than rooms, you are catering for every group of adults-only guests. That part of the market goes somewhere else.
How’s the view from your home?
The view adds value. If you have a home with a limited view, then that’s it. It is a factor. And if your home had an exceptional view, it will make more.
Additional Features
Each of the following features adds value. For example, the sun loungers; nothing sells like a pool/hot tub entertainment area with sun loungers. But you sell to egos.
- [Inverter ] With load-shedding, this is critical to keep few lights, TV and Wi-Fi working.
- [Sunny area or outside area(s)]: It sells. Dress it up. Take a photo to show they get sun here.
- [Aircons]: Makes it easier to get the sale.
- [Off street parking]: People are so concerned.
- [Uncapped High-Speed Internet ]: Very obvious.
- [Sun loungers for ALL guests]: Yes! If your home sleeps 8 adults get 8 sun loungers. If you have a home sleeping 6 adults, and you want to save a few bucks, get 6 loungers and let the kids dump on the ground. I would rather get 8 loungers. If you your space is limited add add floating sun loungers. Sun loungers is an emotional seller. Guest with money don’t want logic! Saving money by not getting many loungers is as short-sighted as deciding not to invest in professional photos. You save on cost now but you pay the price in turn-over year after year.
- [Equal bedroom sizes and facilities?]. Airbnbs where all bedrooms are equal in size and equal in facilities like bathrooms do better. A 4 bedroom with 4 bathrooms ensuite will do better than a 4 bedroom with 3 ensuite and one shared bathroom, etc. Why? Egos. Those with money like to be seen to treat invited friends or family equally.
- [Modern or new kitchen]: A modern or new kitchen sells.
- [Modern or new bathrooms]: Remove those old white tiles with nasty grout. Dump the old bath. Replace it with a wet shower and glass.
What Is Your ONE MOST Import Airbnb Agency Criteria?
Unfortunately, for us cheap does not translate to quality. If you are looking for the cheapest Airbnb agency, we will not be your answer. There are lots of cheap agencies.
We are trying to be the best Airbnb agency. We work with owners long term to create relationships with guests to create trust. Trust creates demand. Demand increases occupancy. High demand with no occupancy means increased income. This is a slow process to maximise net income. Cost is important, but not while sacrificing quality.
What Airbnb minimum length of stay will you allow?
Length of stay is another one of the critical Airbnb profitability differentiators
- Generally, 1 to 2 nights are risky because it attracts people over weekends and limits longer stays if odd 2 days appear somewhere in the future.
- 3 to 4 nights minimum are ideal during the year. Over peak we suggest much longer.
- Anything over 5 days becomes a limitation as most guests stay shorter; 3 to 4 nights during the year. It can be done, but be aware.Peak can be 10 to 14.
What Else?
How do you like these ideas? Do you agree? Or do you think the mediocre is good enough? Think again. A small investment in cleverness can even double your income without breaking the bank.
Great. Now, why not share the Profitability Evaluation with a friend who can learn from the experience? Copy this link https://forms.gle/cTXmzScZeqU2s3vc6 or go here and grab it.
Johan Horak
P.S. Just another experience creator at CapeHolidays; only if it’s 5-stars it’s good enough. At 4.9 out of 5 we are nearly there.