Interesting article with lots of data
Our findings are clear that hosts earn significantly more revenue on Airbnb when they receive the Superhost stamp of approval.
The uptick can be seen in these key performance indicators:
Experiencing an 81% higher occupancy rate.
Earning 60% more revenue per available day.
A 5% improvement in listing traffic.
The story is a little more interesting than the headline conclusions :
Surprisingly, Superhosts are charging less on a nightly basis. Superhosts’ Average Daily Rate (ADR) is about 11% lower than the global average, but they far and away make up for it with increased occupancy, with an 81% higher Occupancy Rate It appears that Superhosts are better able to find the delicate balance between occupancy and nightly rate. The conclusion that can be made is that dynamic pricing is a critical component of not only maximizing revenue, but also for achieving Superhost status.
Airbnb guests like a bargain, and will provide better reviews for one. This in turn leads to high revenue and superhost.
The value part is interesting because it speaks to the inability for plus to drive higher prices. It may in fact squeeze prices as those without plus are forced down to a lower price point to keep occupancy :(
The key differentiator of Airbnb I believe is price above everything else - yes, you can live like a local etc, but the number one value proposition is save money.
Also interesting in the Airdna that max revenue per unit tops out at about $30k / year. That means to get Airbnb beyond a side gig you need multiple units...
Well, it makes sense that a business selling pricing assistance makes a case that pricing skill drives overall success. One thing that isn't mentioned (bc it isn't a need for all hosts) is that for my guesthouse listing if it isn't rented then it is available for my use. So my baseline minimum is higher than I would assume it would be for a host who has a listing that truly is a use it or lose it proposition.
So, I'd rather maximize rate on the days it is rented and then enjoy it myself on days when it isn't.
Again, not necessarily the spot every host is in, but there are some of us who aren't trying to be 100% occupied.
I find myself nodding to points made by @Kelly
Because my listing is a private room in my home, I prefer to keep my occupancy rate at around 80%ish (under 85%) and personally, if I could charge more for a lower occupancy rate and get the same payout I would :-)
There's a point at which lowering rates doesn't make economic sense. What I'm seeing in Kansas City is a flood of new entrants charging teaser rates that don't truly reflect the real price. It takes 4 hours to clean my apartment because of the size. I can't compete with superhosts with much smaller spaces (or using airbeds and couches) who charge bargain bin prices. So I'll just stay where I am.
I found lowering the price resulted in tenants that were not easy on my space.
@pete that may be true. (Abb is for the value seekers) that’s why I’m also listed on HomeAway, as their clientele seems to be more focused on experience & quality and less on price.
So, my calendar fills up first with the HA guests who plan ahead and then I fill in the gaps with abb bargain hunters.
But I'm not going to take up ABB's pricing. They say I can get 146% more occupancy in April, which is mathematically impossible given the days left that I don't have full! They also say 35% more bookings if I drop my rate 25%. So, loads more work for a couple of quid - who would do that?
For what it's worth, I don't see any financial advantage, yet, to being a Superhost.
@PeteYou got my attention so I read the article. Got to say, it's poor in its analysis. There's no way Airdna can know what the income of a host is without asking, and there's no suggestion they've talked to hosts. Most of us list elsewhere, offer discounts, take direct bookings, use the property for ourselves and family.
Then they say -
The conclusion that can be made is that dynamic pricing is a critical component of not only maximizing revenue, but also for achieving Superhost status.
No it can't! They present absolutely no evidence that Superhosts use dynamic pricing, or to what extent if they do. Nor do they say how it can help achieve Superhost status, unless they mean dynamic pricing lowers your rates, and as Superhosts charge less than the average, if you lower your rates you must qualify to be a Superhost!
This paper wouldn't get a C+ at school.
Its more data than Airbnb itself produces publicly :)
Clearly they can't track other platforms. I also don't know if they can actually track blocked vs booked days so the overall income numbers might be skewed high.
it is worth noting that most hotels use dynamic pricing.