Top Airbnb Market Research Techniques & Tips on Where to Airbnb in 2022
Summary
TLDRThis video offers an in-depth guide to conducting market research for Airbnb property selection, emphasizing the importance of analyzing data trends and supply availability. The host demonstrates how to utilize Airbnb's platform for free market insights, including assessing demand, identifying minimum stay requirements, and understanding guest capacity dynamics. The tutorial also explores strategies to determine pricing and uncover underserved market segments, ultimately aiming to maximize booking potential and revenue.
Takeaways
- đ Conduct thorough market research before selecting a property for Airbnb to understand demand, supply, and competition.
- đ Utilize Airbnb's platform data for free to perform market research without needing to pay for external tools like AirDNA or Mashvisor.
- đ Focus on both broad market trends and individual listing data to get a comprehensive view of the market.
- đ” Understand the cap on Airbnb's search results at 300 listings to gauge the sample size for your analysis.
- đ Search for different date ranges to determine how many listings are available for various stay lengths and identify patterns in booking availability.
- đïž Analyze the number of available listings for different guest counts to find out which group sizes are underserved in the market.
- đ° Use the price distribution chart on Airbnb to see which price points have the most listings and identify trends in booking prices.
- đ Compare price charts for different search parameters to see which listings are getting booked and at what prices.
- đ Track the booking rate over time to understand how quickly listings in different price brackets get booked up.
- đ Identify underrepresented market segments, such as listings that can accommodate larger groups, to find potential opportunities.
- đ Keep a record of your findings in a spreadsheet to track and average out the data over time for more accurate insights.
Q & A
What is the most important step before picking up a property according to the video?
-The most important step is market research, which involves analyzing data and trends to understand the demand and supply in a particular area.
What is the significance of the number '300' in the context of Airbnb search results mentioned in the video?
-The number '300' represents the maximum number of search results that Airbnb displays. It's the cap for the sample size of listings that can be viewed at one time.
How can one determine the demand for listings in a particular neighborhood using Airbnb's platform?
-By comparing the total number of listings in an area with the number of available listings for specific dates, one can gauge the demand. If a high percentage of listings are booked, it indicates strong demand.
What does the video suggest about the relationship between the number of guests and the availability of listings?
-The video suggests that as the number of guests increases, the availability of listings decreases, indicating that larger groups may be underserved in the market.
How can the minimum length of stay affect the number of available listings?
-The number of available listings can increase or decrease based on the minimum length of stay required. Some listings may only be available for longer stays, affecting the total number of options for guests.
What is the purpose of searching for different guest counts in the market research process?
-Searching for different guest counts helps to identify market gaps and opportunities. For example, if there are fewer listings available for larger groups, it might indicate an underserved market segment.
Why is it beneficial to analyze the price distribution of listings in a particular area?
-Analyzing the price distribution helps to understand the market's pricing strategy and identify which price points are getting booked. This can inform one's own pricing strategy to maximize bookings.
How can one use the data from Airbnb to predict future earnings potential for a listing?
-By analyzing the booking patterns, price points, and availability of listings, one can estimate the potential earnings and competition in the market, helping to predict the success of a listing.
What is the advantage of being part of a community like 'Hosts of Airbnb Automated' on Facebook?
-Joining a community allows hosts to share insights, discuss market research findings, and learn from each other's experiences, which can enhance understanding and decision-making.
What additional resource does the video creator offer for those interested in more in-depth market research techniques?
-The video creator offers a course called 'Cracking Superos' that provides more advanced techniques and includes mentorships and live Q&A sessions.
Outlines
đ Mastering Airbnb Market Research
This paragraph introduces the concept of market research as a crucial step before selecting an Airbnb property. The speaker emphasizes the importance of utilizing free data available on the Airbnb platform for high-level market insights. The video promises to reveal a newly discovered method for extracting valuable data, which the speaker considers a significant addition to their market research strategy. The summary explains the initial steps of setting up search parameters to gather data on listings, focusing on the availability of entire places for specific dates and the significance of Airbnb's search result cap at 300. The speaker illustrates how to assess market demand by comparing total listings with available ones during peak times, establishing the neighborhood's demand and supply dynamics.
đ Analyzing Supply and Demand Dynamics
The speaker delves into the intricacies of supply and demand within the Airbnb market, using the example of their neighborhood in Dallas Victory Park. They demonstrate how to analyze the availability of listings for different guest counts and minimum stay requirements, highlighting the importance of understanding these dynamics to gauge market demand and competition. The paragraph discusses how to collect and average data over several weeks to determine the average availability of listings with varying minimum stay policies. The speaker also introduces the concept of using this data to develop a competitive strategy for new market entrants, including insights on pricing and the potential advantages of targeting underrepresented market segments.
đ Targeting Underrepresented Market Segments
This section focuses on identifying and capitalizing on underrepresented market segments, such as listings that can accommodate larger groups. The speaker uses data from their neighborhood to illustrate the significant drop in available listings as the guest count increases, suggesting that listings catering to larger groups are less common and thus have the potential for higher performance. The speaker advises on strategies for entering such niches, including the potential for higher pricing and the importance of understanding local market conditions. They also discuss the implications of minimum stay requirements on pricing strategies and how to leverage the scarcity of supply to maximize revenue.
đ Real-Time Market Analysis and Pricing Strategies
The speaker introduces a method for analyzing real-time market data to understand what hosts are making and how bookings are distributed across different price points. By examining the price distribution chart on Airbnb, hosts can determine which price brackets are getting booked and which are not, providing insights into market demand at various price levels. The paragraph explains how to use this data to make informed decisions about pricing and to identify patterns in booking behavior. The speaker also emphasizes the importance of interpreting this data correctly, suggesting that mentorship and community support can be invaluable in understanding and acting on market trends.
đ Conclusion and Call to Action
In the concluding paragraph, the speaker summarizes the importance of the market research techniques shared in the video and invites viewers to engage with their community for further insights and support. They highlight the value of their course, 'Cracking Superos,' for those seeking a comprehensive understanding of market research and property selection for Airbnb. The speaker also mentions a free Facebook group, 'Hosts of Airbnb Automated,' as a resource for hosts to discuss and learn from each other's experiences. The paragraph ends with a call to action for viewers to like and comment on the video, reflecting the value they have gained from the content.
Mindmap
Keywords
đĄMarket Research
đĄAirbnb Platform
đĄAvailability
đĄDemand
đĄSupply
đĄMinimum Night Stay
đĄBooking Strategy
đĄPrice Distribution
đĄCompetitor Analysis
đĄMentorship
đĄUnder-Serviced Market
Highlights
Market research is crucial before selecting a property for Airbnb.
The presenter reveals a high-level, valuable method for free market research using Airbnb's platform.
A new piece of data is introduced to the presenter's market research method, enhancing the strategy.
Two key parts of market research are discussed: broad brush and individual listing data analysis.
Airbnb's search results cap at 300, which is important for understanding the sample size of data.
Demand is established by comparing total listings to available listings during specific dates.
The relationship between group sizes and travel patterns is analyzed to identify market gaps.
Supply availability varies with minimum length of stay requirements, impacting booking strategy.
A method to determine market-wide earnings in real time is shared, offering future data insights.
Price distribution charts help identify which price points are getting booked and which are not.
The presenter suggests waiting to see last-minute booking patterns to understand market dynamics.
Interpreting data correctly is emphasized for making informed decisions in property selection.
Mentorship and community engagement are highlighted as important alongside free content.
The importance of identifying under-serviced markets even in neighborhoods with many listings is discussed.
A free Facebook group, 'Hosts of Airbnb Automated,' is recommended for further learning and discussion.
The video concludes with an offer to exchange likes and comments for the value provided in the content.
Transcripts
this is by far the most important thing
that you should do before picking up a
property it's market research and in
this video i'm going to show you how
this is probably the most high level and
most valuable thing i've ever taught on
this channel probably for free this is
insane
welcome back airbnb family i cannot
believe i'm actually going to show you
this this is super sick i've discovered
the most important data that you could
ever find to do market research and it's
sitting here on the airbnb platform for
free you have access to this data for
free you don't have to pay for like air
dna or all the rooms or mash visor or
anything i'm going to show you how to
pull this data out of airbnb and use it
um and one of these things is absolutely
brand new to me like it's now new to my
market research method i was teaching
one of my cracking superos students in a
zoom session um i'd like some nuances
about what i teach for market research
and i tripped over this like extra piece
of data um i'm going to be using this
forever by the way that could be the
transaction i'll exchange you this gold
for a like thanks in advance so let's
put up some screenshots there are two
important parts of market research one
is the broad brush going over hundreds
of listings at one time and looking for
data and trends within the data and then
there's individual listing data that you
pull you like go through a fine tooth
comb and like pick individual listings
and look at stuff ones that are relevant
so in this video i'm going to teach you
the broad brush market research stuff
and yeah and perhaps i'm giving you this
for free as a subtle flex that there
aren't really any other gurus on the
planet who know this stuff and so i'm
gonna give to you guys as a gift just to
show you that no one else actually knows
what they're doing so
first screenshot let's set the
environment for our market research
we're using my neighborhood i live here
in dallas victory park at dallas red x
american airline center so that's what
the screenshot is now what we are doing
to set up our initial search parameters
to start to get the data that we need
we're selecting instant book an entire
place right those are the two filters
that we're selecting then we're zooming
in to an area of the map that's relevant
and then we're checking the box search
as i move the map it's d it's checked by
default we're unchecking that now we're
going to search for three guests without
dates and voila our first search what
we're going to see now is in the top
left above where all the listings are
you're going to see a number 300 plus
stays the first thing you need to know
is that airbnb caps out their search
results at 300 that's the sample size
max now this is going to be important if
you want to start getting like relative
data like you're going to search one set
of data and it's going to spit out a
number like 200 or 250 and you're going
to do another search and it'll spit out
25 50 100. that's going to matter right
now we're going to start with this over
300 thing because we're going to get to
the rest of it here by the end of the
video now the first search that we're
going to do is to search for some dates
we're going to pick a two-day range in
the immediate future it's mid-february
the next available weekend is the 25th
through the 27th so we're just going to
search that what we've just done is
we've done a search comparing the total
number of listings in the area versus
the total number of listings left in the
area this coming weekend that are
available for two nights and out of the
over 300 listings that are in my
neighborhood only six are available for
two nights day this weekend that means
that they're either booked or blocked
essentially so well over 90 percent of
all the available listings in my area
are booked or blocked for this coming
weekend that lets you know that there's
demand we've just established demand in
this neighborhood that's step one if you
look at this big picture
if you find an area that has tons and
tons of listings right it might seem
overwhelming because there's 5000
listings in the area well if all of them
are booked that means demand has met
supply but if you find another area that
only has say 200 listings in the whole
city and only 20 of them get booked then
supply
like is greatly outsized compared to
demand there's not enough demand for the
the little supply that there is so it's
actually better to find a place that is
fully booked regardless of how many
listings there are as opposed to a place
with less listings okay so that's
the food for thought but this search
this first search gets a little bit more
curious let's make a minor change let's
search for three days instead of two
well now that we've searched for a
three-day stay which is more days that
need to be available all of a sudden the
supply goes up it goes from six to seven
what that tells you is that out of the
available listings some of them have a
minimum night stay of three days or
longer where some have a minimum night
stay of two if we search for only one
day we might even show that there's less
available listings because of a
two-night stay minimum what we're about
to look for next is how much supply is
available based on certain search
parameters minimum length of stay so
let's jump into june
and we're going to search one day june
14th just that night we're going to find
that we have a certain amount of
listings available
that is 47 doors are available for three
guests for one night still entire place
still instant book naturally we're going
to change this to a two-night stay and
that supply goes up from 47 to 58.
that means that there's an increase of
11 listings available that have a
minimum of a two-night stay
so 47 doors are available with a
one-night minimum length of stay another
11 are available with the two night
minimum we search again for three days
we're up to 67 which is another nine
doors available that have a three night
minimum
so of the 67 doors available for this
date range
nine or three night minimum 11 or two
night minimum 47 or one night minimum
what you should do is you should average
this out search every week in may right
now it's february so february march
april may less than three months out is
probably optimal for this and so search
every week in the 60 to 90 days into the
future range and do this mid-week kind
of search where you search for one day
two day in the three day but do it for
some like four cents search for one day
two day and then three day and then
you're going to search for four weeks in
a row which is going to give you 12
total data points you want to put this
into a little spreadsheet now you're
going to take for that month of may in
this example of the four days that you
search for one night stay how many
showed available right you're gonna take
the average of that number then the two
night sample size you've got four data
points for that take the average of that
number and then the three night minimum
stay search you're gonna have four data
points to take the average of that this
shows you
relatively how many listings are
available with minimum length of stay
requirements in your neighborhood now
this data can be used to help you
develop a strategy on how you're going
to get booked if you enter this market
you can overlay this data into other
searches and start to get more robust
looks at your market research data let's
actually go to the next search and i'll
give you an example here we're going to
search for four guests instead this is
going to be the first time that our
non-date specific search result brings
less than 300 doors we only have 249
doors available for four guests in my
neighborhood all the search parameters
are the same now we know for about every
70 doors that are available on airbnb 20
of them have minimum length of stays so
of this 250 door count that we have
roughly about 30 33 of them might have a
three night minimum stay and about 45 of
them roughly maybe 48 of them have a
two-night minimum stay and so basically
what we have here is we've got about 175
170 doors ish that have a one-night
minimum stay of the 249 available just
something to know as you continue to
search that though is unimportant for
this next reason why we're doing this
search we're gonna switch that count
from four to five and see what happens
when we switch to five guests you're
going to notice that the supply drops
from 249 all the way down to 120 that is
a huge drop this is important because
we've already established demand right
i'm going to help you guys connect the
dots here this is where it gets really
cool
we just searched before without dates
there's over 300 listings available
and then with dates
portfolio-wide in my neighborhood
there's only six or seven doors
available for 293 night minimums day
that means everything's getting booked
well if there's 249 doors that can have
four guests and they're all getting
booked but then only half as many doors
can have five guests if you think about
the relationship between group sizes and
travel here we are extrapolating but if
you look at that relationship it starts
to not make any sense right so for every
individual that travels there's going to
be less groups that travel but when you
think about group sizes for every group
of three
or for every 100 groups of three there's
probably 80 or so groups of four for
every 80 or so groups of four there's
probably still 60 or so groups of five
for every 60 or so groups of five there
probably still is 45 or 48 groups of six
right that should be a more linear curve
down you don't see like in a
neighborhood like this a hundred groups
of four and then ten groups of five
traveling right it doesn't drop off like
that you can make some assumptions here
about the curve of demand then when we
go search for six we drop down to 70
we go from 249 to 120 to 70. well 70 is
30 ish percent of 249. you add two
people to your group and there's only
thirty percent the available listings
that is pretty wild what we're seeing
here is in a market where everything is
getting booked that groups of six are
under represented by probably a factor
of two meaning that a listing that can
host six people will outperform by a
factor of two two times as many views
twice as much booking conversion
two times as many full rate reservations
whatever your rate is you should expect
to get twice as many bookings at full
rate before you start having to adjust
your prices we jumped the search to
seven and now we're down to 24 doors
available for seven now this does make a
lot of sense thinking about this
neighborhood so i'm in victory park and
behind this camera that i'm talking to
is a skyline full of high rises there's
a lot of one bedrooms a lot of two
bedrooms and the floor plans aren't
really that large in a lot of these
apartment complexes and there's
definitely not houses there's no houses
in this neighborhood we're right next to
the american airlines center so if you
think about places that sleep seven
people
usually that would be a three bedroom
and there's really not that available in
this neighborhood there might be some
floor plans for two bedrooms here where
you can have two queen beds and maybe
another queen or king in the second room
and then a sleeper sofa in the living
room there probably are ways to be able
to sleep six seven eight even possibly
nine people in a two bedroom in the
larger floor plan units here in this in
this area but they're highly hard to
come by i'm imagining and that's why
they're not in the space so if i was
going to come to victory park here and i
wasn't going to compete with my typical
studio apartment strategy because we're
right next to american airlines center
and that would make a lot of sense i
would try to in this case get three
bedrooms if they're available but
otherwise the largest floor plan two
bedrooms i can get my hands on and try
to sleep seven people i would be carving
out a piece of the market that is highly
underrepresented and would make me a lot
of money what i also know is here in
victory park because you know 30 percent
of the listings available have a minimum
length of stay of two or greater i can
charge a higher premium for a one night
stay because i have less competition at
one night and i can start to give two
night or three night discounts to start
to compete with those other listings but
where there's an absence of supply for
one night i can charge a premium and
that might actually work out to a better
end-of-month revenue strategy than just
maintaining a three-night minimum stay
like everybody else now this next search
metric i'm going to give you is actually
not new to me but it's in my course and
i've just added a lot of new really cool
market research stuff to the course so
i'm going to actually pop this into the
free category because my students are
still getting a lot of really awesome
stuff so this i'm going to give to you
guys for free now which it normally
wasn't and this is how to determine what
everyone is making like market wide in
real time it's really cool otherwise
you'd have to pay for this data you
could go to all the rooms or air dna and
start to pull this data but they can't
give you future data they only can give
you back data this is the only way to
get future data of what other people are
making okay this is really tight so
let's redo that initial search for
guests victory park entire place instant
book 249 listings but now let's click
the price button the price button has a
drop down it has a chart with a slider
on it those sliders can show you what
price point is at the bottom what price
point is at the top and these bars
represent the total number of listings
at these price points and so this is
like a distribution chart showing you
all of the prices for all of the
listings in this search sample size now
if we go and we change the dates or
change the guest count or anything these
prices will start to change and now we
can start to compare those price charts
and start to see what's getting booked
and what's not getting booked so now if
we do a search march 4th currently is
two weekends away we did a three day
stay
for guests and 85 of all the listings
are booked right now 85 of the inventory
is gobbled up but we want to know at
what price so now let's look at the
chart again the distribution chart in
the price section now is missing a lot
of data
we care about the missing data so let's
look at what data still exists and what
prices are vertical here and we can
compare to the other chart and what was
vertical in that other chart and compare
them
all the data that is missing are all the
listings that have been booked
and the data that is missing now are the
prices for the listings that have been
booked so what we see here is the more
expensive listings are getting booked
there's a huge quantity of bookings that
have happened at above the 120 per night
price point from what i'm looking at
here which is really awesome the only
listings that are left are going to be
rare listings that are too expensive
maybe too new and expensive or have bad
reviews and either our expensive or just
really trash listings is what we have
here so since there's only 15 of the
data available what i'm going to do with
this data is i'm going to wait i'm going
to do the search in a week again and i'm
going to look to see what is left last
minute for this as well so what this
will show me is i've got three data
points i've got what's totally available
what is available two weekends from from
now and i mean if you're impatient you
can do another search for this coming
next weekend right and what you see is
the rate at which things are getting
booked what prices get booked first what
prices get booked last i could go on for
45 minutes about this part like
literally and that's why it's in my
course and that's why a lot of the stuff
my market research and my competitor
analysis is in the course is because we
do a four-hour zoom call every saturday
where my students ask me questions about
the data that they're finding and a lot
of this data it's not just having the
data but it's interpreting the data that
allows you to make the right decisions
and which properties to pick up and when
you're new to this kind of stuff you may
not know how to interpret the data right
and that's okay if you're new here
that's fine i've got guys who've got 60
plus properties that still have a hard
time understanding what this data is
telling them and that's why mentorship
is just as important as this free
content you're getting so in this case
to get back to the point here that you
can use is that we found the listings
that are getting booked and we're
finding that listings a month from now
are getting booked at certain price
brackets if we do the search and that
last minute the stuff that is available
very very last minute the stuff that is
not booked like today or tomorrow is the
stuff that gets left behind so now you
can start to extrapolate
what listings are getting booked what
price points they're at and other
factors like what what sizes they are
and then the stuff that's getting left
behind you ask yourself is it because
there's not enough demand to book this
stuff or is this stuff really just so
bad that people aren't booking this
stuff or it's just such a inappropriate
fit if it's priced out of the market or
if it's poor quality you can still argue
then that maybe this area of town has
more demand
than supply but they also have standards
so instead of booking in this
neighborhood they've decided to go other
neighborhoods nearby to get the price
that they want or to get the listing
quality that they want so you can start
to ask yourself the real questions here
and this is how you find an
under-serviced market even if there's a
thousand listings in a neighborhood if
all the like relevant listings are
getting booked now you know you can use
this data so real talk if you want all
of my techniques for market research you
want to know absolutely everything that
i do to start pulling the relevant data
including my individual listing data
research stuff my competitor analysis
stuff that is in my full course cracking
surprise this is not necessarily easy
stuff to learn and we do four hour zooms
every saturday where people come to me
with data that they're looking for
they're trying to do this research maybe
they had a couple mistakes that they
made or they're missing very key data
that will really tell them a story the
data tells a story and i've done this a
lot right some of this is new like i'm
showing you some brand new stuff in this
but i do this a lot and so having
someone to bounce that off of and
somebody to really coach you through
interpreting the data i think is super
important so that is why i am mentioning
my course in this in this video where i
typically never do so just take that for
what it is um otherwise otherwise also
valuable i have a free group the hosts
of airbnb automated on facebook it's an
outstanding group full of very smart
students of mine a lot of them who learn
for free right here on this youtube
channel some who are in my paid stuff
but there's a lot of really smart people
there so as you do some market research
as you're using this video if you want
to talk to other hosts about what it all
means um and you don't want to pay for a
course because you don't have to talk to
my students and the the host of airbnb
automated for now do that i mean you can
get a lot of value here from that so i
really hope that this video gives you
everything that you need to be
successful picking up the right
properties finding the right cities to
do airbnb and of course finding the
right types of properties this stuff is
fire guys and if anything
i guess let's just exchange a like and a
comment for the value you got in this
video i really hope it helped you guys
out thank you so much for watching this
and i'll see you on the other side
[Music]
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