It’s no secret. A great number of vacation rentals were hit hard by the pandemic. Can your own Airbnb rental survive Covid-19?
Airbnb suffered huge losses during the first 3 quarters of 2020. But it managed to rake in a profitable third quarter, and even went public in December with a very high initial public offering (IPO).
According to an early 2021 research, Airbnb remained dominant in booked trips throughout 2020. It even went from the bottom of the pile to the very top.
Airbnb’s head of global public affairs said new hosts, in fact, have made over 1 billion US dollars worldwide since the pandemic.
Whether you’re a new Airbnb host with just 1 unit to offer, or a veteran boasting several properties in your portfolio, now is the best time to seek new opportunities in the fast-changing, yet still-growing, short-term rental industry.
People’s travel habits have evolved since Covid-19. While business travel used to take prime spot before the pandemic, personal and family travel have quickly taken over.
A January 2021 study found that over half (51%) of American travelers planning their first trip in 2021 were going to see friends and relatives. And the vast majority of those trips would be by car.
Last year, a Vrbo survey reported that 50% of families planning to travel in late 2020 cited flexible school schedules as the key reason for more flexibility in vacation. Some 47% said it was because they could work from anywhere.
Airbnb is expecting a travel rebound in the summer of 2021. According to its CEO, Brian Chesky, Airbnb’s single priority this year is to prepare for this rebound.
Even independent analysts say the STR sector is poised for a strong recovery in 2021. Consumer spending will shift away from goods and back to experiences because of people’s pent-up demand for travel.
As more people plan to travel in the months ahead, how can vacation rentals draw more guests and keep their properties well-booked? Make sure you ride the wave of recovery by following these 9 tips.
Provide lots of fun stuff: board games, DVDs, playing cards, books, art supplies, and maybe even a gaming console. Parents will be pleased to know there are things to do for the kids on a rainy or snowy day.
If you have a yard that can accommodate barbecue, go ahead and provide a fire pit, a grill, and a s’mores pack.
Consider keeping a stroller, high chair, and a playpen available. These are things families forget, don’t consider, or refuse to bring for the sheer hassle. But once they see them in your listing, they’re likely to sway in your direction.
Also, there’s a growing demand for pet-friendly travel. You may want to consider offering dog-friendly amenities.
Remote school and work have created a demand for longer-term stays. According to a recent Airbnb survey, 60% of longer-term guests in late 2020 were working or studying during their stays. And 65% of them said Covid was a factor in their decision to book a longer-term stay. (‘Longer-term’ being defined as 28 days or longer.)
According to Transparent, longer-term stays will drive the STR industry’s growth into the future. Nomadic living was already trending for years before the pandemic, but Covid-19 spurred it further. The average length of Airbnb stays has increased by 50% since April 2020.
Consider offering discounts on week-long or month-long stays – anywhere from 40-60%. That should incentivize guests, since it would turn out cheaper for them in the long run.
You benefit by getting your rent or mortgage payments covered, and getting bookings even during the lean months.
Increase your internet speed to the fastest that your service provider can deliver. Countless folks, not just digital nomads, are now working remotely.
If your speed is 25Mbps and competitors in your area are offering 100Mbps, you’re at a disadvantage. You might have inquirers who happen to be call center agents, YouTubers, or social media producers. They’re unlikely to book properties with slow internet speed..
A cable TV and any device offering movie streaming like Netflix, AmazonPrime, or Hulu are also hot items
Set up a home office station. Get a desk, a lamp, and an ergonomic chair. If your space is limited, think about getting just a laptop desk or one of those small tables that reach over from the side of a couch.
College students are also looking for “collab housing,” a place for them to study and live together for a semester or year. If your property is near a university — which is likely still closed — and it’s large enough to house a few tenants, consider this option.
Ever since the flu pandemic, public health has become of utmost priority. Everyone wants safety and peace of mind wherever they travel.
Make sure you beef up your cleaning protocols. Airbnb has since required hosts to follow enhanced cleaning standards for disease control and prevention. A ‘Covid welcome basket’ containing disinfecting wipes or spray, hand sanitizer, paper towels, hand soaps, and a multi-purpose cleaner should be provided.
If you’ve been following these stringent measures, mention it in your listing description. Guests are looking for pristine spaces, so feel free to advertise yours.
If your property is in the city, you might’ve seen an influx of healthcare workers. Since hotels are expensive for them to stay in, they are booking vacation rentals instead.
Airbnb hosts who have taken in traveling nurses say they’re some of the best guests to have. They’re out all day and come home just to sleep at night. They’re clean-freaks themselves, so tidying up after them is so easy.
You may also consider catering to Covid patients. Some are being quarantined in external facilities, others are coming from out of town. If your property is close to a medical facility, particularly on the ground floor of a building, or in a building that has an elevator, you’re in a good spot.
You’ll want to invest in an ozone machine that can sterilize your property after each stay if you do decide to accommodate guests with exposure to coronavirus.
Watch the video: Strategies on Surviving the Coronavirus as an Airbnb Host
Airbnb has always promoted quality Airbnb experiences. One way it was able to survive the pandemic was by marketing itself as a “stay-cation” destination. Their new ad campaign highlights people and amenities rather than just the location, and the campaign shows how a good host can create great memories for their guests.
Why not offer unique activities in your area? Research shows there is revenue potential in that niche, with the average for each experience running $615 in the US.
It doesn’t matter whether your property is rural or city. While remote locations offer loads of outdoor fun, there’s a slew of interesting stuff to do in the city as well.
Is calligraphy taught in your area? Filipino martial arts? A community garden right down your street? Share those special interests.
Consider expanding to other platforms like Booking.com, Vrbo, and Expedia for more visibility and bookings.
Research found that properties listed on a variety of platforms generate higher occupancy (21 booked nights per month) than those listed exclusively on Airbnb (16.5 booked nights per month).
While there’s increasing confidence and optimism among Americans to travel this year, other factors can still come into play. The excitement and “vengeance” driving travelers now could be dampened by unforeseen events in the future.
Study what’s going on, know your local market, understand the changes taking place. Then be ready to adapt. Find out what works in your situation and do it.
Flexibility and creativity are two of the best qualities to leverage during any crisis.
Related: Recession-proof Business: 11 Ways Your Short-term Rental Can Ride Out an Economic Slowdown
If you can appreciate the market’s changing demands, make the necessary adjustments, and meet your customers’ expectations, you won’t just survive. You’ll thrive.
Learn How to Manage Airbnb Properties Better
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