4 Million Brands
Approximately 4 million different hosts are operating on Airbnb, each host representing their own unique brand. Is there another marketplace that has that level of competition?
Of course, each host is not competing with all 4 million hosts, as the market is clearly segregated by location, property size, etc. Still, the point remains that competition is stiffer than ever before. Obviously, lowering rates is a great way to compete against the competition, but there is another way to compete without racing to the bottom.
When we look back at 2024, the property management companies that perform the best will be the ones that do two things. First, focus on profitability rather than growth; second, focus on brand. We can talk about profitability in a later post. For now, let's focus on building your brand.
Guests are becoming more savvy and comfortable with the short-term rental space. We have big players like Airbnb to thank for normalizing our industry. But it's time we leave our parents behind and set off into the world alone; we cannot depend on Mom and Dad forever. Active Airbnb users are still growing year over year, but the rate at which Airbnb's user base is increasing has steadily been diminishing.
The easiest way to be more competitive is to minimize the competition. Having a truly unique brand or niche can pay dividends now more than ever. Having a truly unique amenity or property will help eliminate the companion. This following statement may ruff some feathers, but "luxury" is no longer unique or niche in most scenarios.
More importantly, though, guests are comfortable booking other ways rather than depending on Airbnb.
If you do not have a direct booking website now, make it a priority in 2024. Many companies out there make it easy and possible to have a direct website ready in a matter of hours. They range from free to 100 dollars a month.
Once you have your site, drive potential and past guests to your website.
Make your brand prominent on your OTAs without breaking their terms and conditions. Guest may find your property on one of the big OTA's, but if you make it easy to find your direct booking site, they will take their reservation there.
Market to all of your past guests! You can easily capture guest contact info using Stayfi software. StayFi is the most essential tool in your tech stack in 2024. Heavily market to these past guests to eliminate the competition before they even consider it. A more low-tech solution is to provide currently staying guests information about booking directly next time. Offer them a return guest discount code to help incentivize them. Make sure it's something that they can physically take with them, like a welcome card or business card, as most people will only remember it if they don't have a physical copy in their junk drawer at home.
While we won't eliminate the need for OTA's altogether, one of your top missions of 2024 should be to minimize dependency on them.