Scale up airbnb and make a business

[Valdis-and-Eva0]

Hi,

I am thinking to bring my airbnb hosting in to next level and get more properties to rent. Before I do that I would like to see how busy the city or area is in terms of bookings on the system for different types of properties. Examples would be private room or whole place. That would help to understand if there is need for more hosts in specific area. If this data would be available on request then that would be great. If someone could get back to me then that would be great!

Cheers!

V

[Cormac0]

@Valdis-and-Eva0 

The first thing  you need to do, is an in depth analysis of your logistics, I would go so far as to say if your new properties are not in walking distance of your existing one, don't go there.

There are plenty of Airbnb Guru's on YouTube perhaps you could tap into them for valuable advice, but in all honesty they caught the curve in the ascent in my opinion.

With regards to your information request, there are companies that will sell you that information if my memory is correct.

with regards to scaling a standard business model the old adage hold true "turnover is vanity, profit is sanity, but cashflow is reality"

[Valdis-and-Eva0]

True thing! I believe Airbnb should be interested to provide this information to someone like me with no additional cost and that would benefit them once right properties pop up in right places. 

[Helen3]

Why would Airbnb provide you with this information for free - there is a huge cost in collecting it globally and you  are the one who directly benefits? @Valdis-and-Eva0 .

As a listing company they are interested in attracting as many guests as possible to buy accommodation through their platform. In many popular areas the market is already over-saturated. 

If you want to carry out market research to expand your short term rental business then it is up to you to do this. You can then use the data to decide when and where you expand, once you have decided who your target market is.

Obviously Airbnb is just one provider, you can list wherever is relevant as well as marketing directly.

Speak to Norwich Tourist Board and the East Anglia Tourist board - they may have footfall data  around tourism figures they can sell you and also look at AirDNA.

[Valdis-and-Eva0]

If Air bnb is thinking about hosts that want to host more then I'm sure they should be considering to give some kind of data about areas where they need them more. All well developed websites now days inform their sellers about what's on demand. That is directed income to them as well. 

[Susan17 · Accepted solution]

@Valdis-and-Eva0 

You don't need statistics, data or expert analysis. I can tell you now, for free - don't put any money into Airbnb that you're not willing - or can't afford - to lose in the next 18-24 months. As calculated risks go, sinking your available funds into Airbnb investment at this stage of the game, is a gamble that's highly unlikely to pay off, even in the short-medium term. 

As regards AirDNA, take their offerings with a huge pinch of salt. Ever since they started to feature select Airbnb listings on their site some time ago, many users now claim that the data they provide is inaccurate, misleading, and appear to exist now with the sole purpose of driving investor traffic to the regions identified by Airbnb as their potentially most lucrative "emerging new markets"

Tread very carefully, and never put all your eggs in one basket when it comes to Airbnb. 

[J-Renato0]

@Valdis-and-Eva0 

I believe my opinion can be of some value because I have 4 listings now.

I think, the first thing you (or anyone) should do before starting a business or investing more in a business is to look for information on your own rather than asking others.

There is a wise saying - "Never ask the barber if you should get a haircut." 

Be careful of the ones who sell advices.

You can know if there is demmand for more accommodation by taking your own listing as an example.
If you are profiting and you are very inquired and full of bookings.... Perhaps  there are good chances to succed if you get more accommodations to let.

Even if there are already several listing in your area, it is your performance that counts. It is you that will manage the listing, It is you that will offer the accommodation within your on style of hosting.

Do not take others for example. Those who fail have their own reasons. Successful ones also have their own reasons. Each person is different from the other, and depend on their own endeavour, skills and willingness to learn.

Remember. When you scale up you may have more regular and monthly costs to afford (business costs). It must be an well thought decision with a very professional and responsable approach.
1- If you offer home stay, you do not have too much extra regular costs to afford.
2- If you offer entire space, you have regular costs to pay (business costs such as rental and other bills). Whether or not your accommodations is booked or vacant, you will still have business costs (regular expenses) to afford.

I agree with @Susan17  - Never put all your eggs in the same basket. 

I wish you success, whatever is your decision and your way.

[Valdis-and-Eva0]

Thanks, that's noted! 🙂

[J-Renato0]

@Valdis-and-Eva0 

I have to add something to my previous post.

I forgot to say that, in my case, I do not have to pay rental, I only list my own properties.
So my business costs are condominium fee, electricity, gas and water consume bills and some other fees.

My forth property I have acquierd recently, I bought it to scale up my listings. So far I am happy, and I am on the way to get my listing number 5, I hope I will make it happen soon.

@Susan17  I see. I understande what you mean. We are not immune to external factors that may cause damages to the business. 

[Susan17]

@J-Renato0 

 "Those who fail have their own reasons. Successful ones also have their own reasons. Each person is different from the other, and depend on their own endeavour, skills and willingness to learn"

True, to an extent. But people can be extremely skilled, accomplished and dedicated to what they do, yet still sadly suffer the ignominy of failure - not through any fault or weakness of their own, but because of unfavourable market conditions, unfeasible operating environments and/or newly-introduced draconian regulations, directly brought about by the insatiable greed and unethical, or even unlawful, actions of others.