It Wasnt A Bug .. Airbnb Algorithm Explained

Summary

The video script discusses a perceived intentional shift in Airbnb's algorithm, which the speaker claims is causing many hosts' calendars to appear empty. The speaker believes Airbnb is prioritizing higher-quality listings to maintain a minimum service level during low-demand periods, potentially leading to a culling of less popular listings. They offer a webinar for $80 to reveal strategies to optimize listings for the new algorithm, focusing on increasing views, filling calendars, and garnering positive reviews to stay competitive on the platform.

Takeaways

• 🚀 Figured out a bug in Airbnb's algorithm that was causing empty calendars.
• 🏠 Set up four new properties, all booked quickly after the 24-hour review window.
• 🔍 Airbnb made changes affecting listings, leading to empty calendars intentionally.
• 💡 Detailed explanation of how Airbnb's algorithm manages supply and demand, adjusting listing visibility based on market conditions.
• ⚠️ Identified a temporary bug in Airbnb's interest metrics tracking, impacting some listings' visibility.
• 📊 Split tested various factors like listing completion, pricing, and booking parameters to improve visibility.
• 🛠️ Emphasized the importance of checking all listing options to optimize for algorithm performance.
• 📈 Airbnb prioritizes views from first-page impressions and filling calendars to maintain listing quality.
• 🌐 Airbnb no longer penalizes for blocked calendars due to bookings on other platforms like VRBO.
• 🔄 Airbnb's strategy involves prioritizing top-performing listings during low-demand periods to retain the best hosts.

Q & A

What was the initial problem the speaker identified with Airbnb's algorithm?

The speaker identified a bug in Airbnb's algorithm that was causing calendars to appear empty.

How did the speaker resolve the issue with the Airbnb algorithm?

The speaker resolved the issue by setting up four new properties, which were booked almost immediately after the 24-hour review window, suggesting the problem was not a bug but a deliberate change by Airbnb.

What is the speaker's claim about Airbnb's actions towards host listings?

The speaker claims that Airbnb is intentionally suppressing certain listings to maintain a minimum level of quality and manage the supply and demand curve.

What does the speaker suggest is Airbnb's approach to handling the supply and demand curve?

Airbnb is said to adjust the standards for listings to appear in search results based on the demand and supply curve, becoming more selective when there is low demand and high supply.

What is the significance of the 'held for review' window mentioned in the script?

The 'held for review' window is a 24-hour period after listing a property on Airbnb, during which the property is not yet available for booking.

Why does the speaker believe Airbnb might be suppressing certain listings?

The speaker suggests that Airbnb might be suppressing certain listings to ensure the platform retains top listings and to manage the distribution of bookings and views among hosts.

What was the temporary bug in Airbnb's system, according to the speaker?

The temporary bug was that Airbnb was not recognizing interest metrics on some properties, showing a dashed line instead of views, which was later corrected.

What did the speaker do to understand Airbnb's algorithm better?

The speaker conducted extensive split testing on various factors such as listing completion, names, pricing strategies, promotional discounts, booking parameters, and more.

What are the key metrics Airbnb is tracking for listings, as per the speaker?

Airbnb is tracking views from impressions, calendar fill-up, and positive reviews after stays, which are crucial for a listing's performance on the algorithm.

How has Airbnb's stance on blocked calendars changed, according to the speaker?

Airbnb used to punish hosts for blocked calendars, but they no longer do so as severely, recognizing that the best listings are often booked on other platforms as well.

What is the speaker's advice for hosts to improve their listings' visibility on Airbnb?

The speaker advises hosts to ensure they get views, fill up their calendars, and receive positive reviews. They also suggest participating in the speaker's webinar for more detailed strategies.

What does the speaker suggest about Airbnb's strategy for category listings?

The speaker suggests that Airbnb is using categories to create curation and brand loyalty, pushing what they think is popular in areas and encouraging hosts to fit into these categories for better visibility.

How does the speaker plan to help hosts with their listings?

The speaker plans to offer a webinar where they will share their findings and strategies that took weeks to figure out and cost thousands of dollars to test.

Outlines

00:00

🛠️ Airbnb Algorithm Adjustments and Host Strategies

The speaker discusses resolving an Airbnb algorithm issue that led to empty calendars and shares insights into Airbnb's intentional changes affecting host listings. They claim Airbnb is deliberately suppressing certain listings to maintain a minimum quality level during periods of low demand and high supply. The speaker suggests that having a diverse range of listings can lead to a decrease in click-through rates as potential guests become familiar with the offerings. They also mention a temporary bug where Airbnb failed to register views on some properties for a couple of weeks. The speaker offers a webinar for a fee to teach hosts how to optimize their listings based on their findings and testing, emphasizing the importance of views, bookings, and positive reviews to improve algorithm performance.

05:02

📈 Understanding Airbnb's Host Retention Strategy

This paragraph delves into Airbnb's strategy for host retention during low-demand periods. The speaker explains that Airbnb is not punishing hosts as severely for blocked calendars, recognizing that top listings are also on other platforms. They suggest that Airbnb is trying to ensure the survival of top hosts by distributing bookings more selectively, which could lead to a higher retention rate. The speaker also discusses the impact of categories on listings and how Airbnb is pushing for brand loyalty by curating specific types of properties to attract users. They argue that while categories may not directly punish listings, they are part of Airbnb's strategy to deliver a unique user experience and retain top listings on their platform.

10:03

🎓 Educating Hosts on Airbnb's Algorithm

The final paragraph focuses on the importance of understanding Airbnb's algorithm for hosts who wish to improve their listings. The speaker encourages hosts to sign up for an event where they will share detailed knowledge on how to get back on the algorithm's good side. They emphasize the competitive advantage of knowing the intricacies of travel agency website algorithms and hint at future content on the Verbo platform. The speaker concludes by reminding viewers of the necessity to stay informed and not be left behind by competitors.

Keywords

💡Airbnb Algorithm

The 'Airbnb Algorithm' refers to the set of rules and processes Airbnb uses to rank and display listings on its platform. It is central to the video's theme as the speaker discusses changes to this algorithm that they believe are intentionally causing listings to be less visible. The script mentions that Airbnb is 'intentionally crushing people's listings' and that they have made 'very clear distinct changes' to the algorithm.

💡Calendars

In the context of the video, 'calendars' refers to the booking calendars of Airbnb hosts, which show when their properties are available or booked. The script discusses how many hosts are experiencing empty calendars due to changes in the Airbnb algorithm, affecting their business significantly.

💡Webinar

A 'webinar' is an online seminar or workshop, which the speaker is offering to educate others on how to optimize their Airbnb listings according to the new algorithm. The video mentions a specific webinar at 'Thursday 6 p.m' where the speaker will share findings that took 'weeks to figure out' and cost 'thousands and tens of thousands of dollars to split test'.

💡Satisfaction Metrics

'satisfaction Metrics' are performance indicators used by Airbnb to measure guest satisfaction. The video suggests that Airbnb is placing more emphasis on these metrics in its algorithm. The speaker implies that higher satisfaction metrics are necessary for listings to perform well and remain visible on the platform.

💡Supply and Demand Curve

The 'supply and demand curve' is an economic principle that describes how the relationship between the supply of a product and the demand for it affects its price and availability. In the video, it is suggested that Airbnb's algorithm has contingencies based on this curve, becoming more selective with listings when there is low demand and high supply.

💡Click-Through Rate (CTR)

The 'click-through rate' or 'CTR' measures the number of times an ad or listing is clicked compared to the number of times it is displayed. The script mentions that a decrease in CTR for certain listings can cause them to be deprioritized in the algorithm, leading to a 'downward spiral' in performance.

💡Interest Metrics

'Interest Metrics' are indicators of user engagement with a listing, such as views. The video suggests that Airbnb had a bug that temporarily affected the tracking of these metrics. Once fixed, listings that previously showed no views might suddenly show a high number, indicating increased interest.

💡Smart Pricing

'Smart Pricing' is a feature offered by Airbnb that automatically adjusts the price of a listing based on demand and other factors to maximize bookings. The speaker mentions having tested the impact of using Smart Pricing on listing performance within the algorithm.

💡Reviews

In the context of the video, 'reviews' are the feedback and ratings left by guests after their stay. The script indicates that positive reviews are important for listings to perform well on Airbnb, as they are part of the satisfaction metrics that the algorithm considers.

💡Blocked Calendars

A 'blocked calendar' on Airbnb refers to dates that are unavailable for booking, often due to a booking or a host's decision to take time off. The video explains that Airbnb used to penalize listings with blocked calendars but has since relaxed this policy, recognizing that the best listings are often booked on other platforms as well.

💡Category Stories

'Category Stories' on Airbnb are a feature that groups listings into specific categories based on their unique features or themes. The speaker mentions that while category stories can be beneficial, they are not as crucial as other factors in the algorithm, and listings that do not fit into popular categories can still succeed.

Highlights

Fixed an Airbnb algorithm bug that was causing empty calendars.

New properties were booked almost immediately after the 24-hour review window.

Airbnb is intentionally suppressing certain listings, not due to a bug.

A webinar will be held to teach how to get listings back on the algorithm.

Airbnb's algorithm is adapting more satisfaction metrics.

Airbnb has a minimum quality level for all scenarios.

The algorithm becomes more selective when there's low demand and high supply.

Non-performing listings may be due to guests recognizing similar offerings and not clicking.

Airbnb had a temporary bug affecting interest metrics on some properties.

The bug fix revealed a significant underreporting of views for certain listings.

A/B testing was conducted on various listing aspects to determine what affects visibility.

Views are crucial as Airbnb tracks them like a funnel for interest.

Airbnb wants to see filled calendars and positive reviews post-stay.

Airbnb is less punitive about blocked calendars if the listing is on other platforms.

Airbnb's strategy is to protect top listings and distribute bookings accordingly.

During low demand, Airbnb may limit visibility to retain top hosts on the platform.

Categories on Airbnb are not as punishing as previously thought.

Airbnb is building brand loyalty with specific property types.

The speaker will provide more insights on the Airbnb algorithm in an upcoming webinar.

Transcripts

I figured it out I fixed the Airbnb

algorithm bug that's causing everybody's

calendars to be empty I just set up four

new properties and they all got booked

almost immediately after the 24 hour

mark which is their held for review

window for some hosts like me I guess

I'm on probation maybe but here's the

thing it was the algorithm but it's not

a bug and I need you to hear me out I'm

going to talk to you about why Airbnb

made some very clear distinct changes

that are causing your calendars to be

empty and they're doing it on purpose

let's go hey guys yeah I know it's a

serious accusation but I am pretty

confident based on my findings that

Airbnb is intentionally crushing

people's listings but there's a way

through it first I want to let you know

that I will be doing a full webinar on

this if you want to get your listings

back appropriately on the algorithm and

get them to perform Thursday 6 p.m I'll

be doing a webinar there'll be a link in

my bio no it's not free I'm doing less

free stuff now but I'll give you what I

can hear but it's 80 it's an 80 webinar

and I'm gonna give you guys some really

heavy duty stuff that it took me weeks

to figure out and cost me thousands and

tens of thousands of dollars to split

test but I'm going to teach you guys

with that said let's get into what

Airbnb is up to airbnb's algorithm is

still an interest algorithm but they're

trying to adopt more satisfaction

metrics like I said before now I said

that they were not prepared for how slow

this slow season was going to be but

actually that is the opposite of what's

happened I believe interfnb's algorithm

has contingencies in there for the

supply and demand curve Airbnb has a

minimum level of quality that they want

to provide in all scenarios and the more

demand starts to rise compared to supply

the more loose they will be with what

listings they will allow to show up in

search but if there's very little demand

and a lot of Supply what gets populated

in search becomes much more particular

the standards at which your listing has

to perform increases in order for you to

stay on the algorithm one thing that I

noticed with a couple of my properties

the ones that started non-performing

that downward spiral I mentioned in a

previous video is actually because of a

few things but one of the grades of rice

that's at the scale is is we've got 40

doors that are nearly the same like say

five or ten listings showed up in search

of somebody searching the area and to

look at one or two of our properties

they start to notice that they already

know what's going to be in our next

eight so they don't click on the other

eight so what happens is you have

listings where people are no longer

clicking on them because they already

know what you've got to offer and they

know they don't want it because they

already saw a couple of your other

properties so now what happens is they

click through rate on those listings

starts to crash and they stop showing

those listings that were getting breezed

over I'm going to take a step back

though Airbnb actually did have a

temporary bug in the system but it's not

going to fix everything the bug was that

for a couple of weeks at least Airbnb

wasn't recognizing interest metrics on

some properties when I went to search

our conversion there there was a dashed

line not even a zero or a one there's a

dash where it said views this means that

Airbnb wasn't registering views and when

Airbnb fixed that bug the next week when

they fixed it it would show that that

listing had 250 views and the change was

250 meaning that the 250 views it got in

a week was 250 more than was registered

for the weeks prior this legitimately

means Airbnb wasn't tracking interest

metrics on some of their listings or

they intentionally shut off the tracking

of Interest metrics on some listings

that they knew that they weren't going

to show in search anyway because of the

supply and demand curve there still

could be some intentional stuff at play

with this but for two solid weeks they

just were not tracking metrics on some

listings where we would have 10 units in

an apartment complex four of them which

showed no metrics at all so I split test

all sorts of stuff I split test listing

completion I split test names length of

the name I split test whether or not

we're on Smart Pricing or not what are

minimum prices were whether or not we

were using 20 promotional discounts

booking parameters we have like one

night minimum stays or flexible

cancellation pet friendly we split test

everything we could Under the Sun in

that webinar I'm going to show you the

specific data on our findings if there's

anything I can tell you now just go back

new listing and check every single box

you could find and in that webinar I'm

going to give you my findings on data on

what things actually move the needle

most on views the one thing that I also

want to tell you here is yes it very

clearly still views are what we're

tracking because airbnb's looking at our

listings like a funnel they still want

adoption if somebody's window shopping

and your listing pops up and you get a

click on that listing that is good for

the algorithm because it shows that your

listing is interesting now you may not

be available for the dates that they

eventually want that's okay you do not

need to get converted on The View Airbnb

is not tracking that but what Airbnb is

looking for are a few things they want

to see that you have views from

Impressions they more specifically I

think are tracking views from first page

Impressions they are wanting to see that

your calendar is filling up they also

want to see the people's reviews are

high once someone stays so in order for

this to work for you big picture you

need to get views and then by some means

either on platform off platform whatever

Airbnb bookings are starting to come in

they want to see the calendar filled up

and then they want people to give

positive reviews after their stay these

this is the most basic stuff I'll tell

you also they are no longer nearly as

egotistical about blocked calendars they

used to really punish you for a block

calendar but Airbnb knows that the best

listings on the planet are also on verbo

and Marriott homes and Villas and

everything else so if you do get a

verbal booking and the listing gets

blocked for five or six days Airbnb is

no longer punishing you for blocking the

calendar nearly as bad as they used to

because they don't want to not show the

best listings everything that they've

done right now is to tweak to put the

best listings in front of people as

often as possible and you getting a

verbal booking is no longer going to be

pushing you down these Airbnb doesn't

want to punish their best listings

they've realized that that's a huge

mistake hey guys I got a little too

excited after forgot to explain one of

the key elements of this contingency

that low demand where Airbnb starts

dropping stuff out of search the reason

why they're doing this is they have to

choose who lives and who dies in the

platform they understand that if they

more evenly distributed views and more

evenly distributed bookings across all

worthy hosts people who could do a good

enough service that a lot of people

would leave the industry if there was

legitimately just not enough business

for everybody let's give you the math

let's say that Airbnb could give the top

50 percent of hosts business but when we

give the top 50 of House business five

percent break even and 95 percent lose

money and out of the 95 percent that

lose money eighty percent of them lose

enough money that they're really upset

that means that 40 percent of hosts will

just drop off and quit but instead of

giving 50 of House business they could

just give like 35 or 37 percent of host

business and then none of those people

would lose enough money that they would

quit or maybe 25 of those people would

still lose enough money that they quit

the net retention of house on the

platform will Greater by starving a

deeper bottom segment by starving more

of the bottom and funneling more

bookings towards the top 10 20 30 of

listings that means that they have a

greater chance of retaining their top 30

listings so yeah if you're a middling

listing Airbnb really doesn't care about

you in times of distress they'd love to

keep you in times of like over demand

when they just want every single host on

the planet they can get so they can get

as many bookings as they can get there

are bottlenecks like that like imagine

the Super Bowl they want every single

listing in a city available on Deck

ready to go when the Super Bowl hits but

in winter season this is where you go

hey wow we could lose a lot of hosts

right now our algorithm needs to protect

our best hosts and distribute just the

perfect amount and that's why Airbnb is

doing this and that's why they're

crashing your calendar 0v doesn't think

that you're good enough to protect in

slow season some of you hosts might be

mad about categories and I do need to

let you know that from my findings with

my students because obviously this takes

a lot of data category stories are cool

but they're not punishing you the only

way the categories really punish you is

if you're a listing that doesn't fit

into a category where in your geographic

area people want that category I'm sorry

but this is how Airbnb is pushing what

they think is popular in areas so the

pigeonholing people in the category

search it's just like clicking the super

host button uh we've been fine not being

super close we've been in Supra since we

were like at 45 properties we're at 150

you don't grow from 45 to 150 properties

not being profitable we've been

profitable even though we haven't had

super host now Airbnb is leaning a

little harder on super hose now so C'est

La Vie but you can still survive not

fitting into categories because Airbnb

is weighing so many different things and

you're only missing one type of search

really and I'm going to argue it this

way when somebody clicks on the category

button they may not have decided what

city area part of the world they even

want to go to they just want to look at

some castles they want to look at some

tree houses they want to look at some

cabins when somebody goes and searches

Winter Park Colorado they're going to

see all the stuff in Winter Park they

didn't think oh I specifically want a

cabin in Winter Park that search isn't

happening as often as I think you think

it is people are just searching Winter

Park and they're going to see all these

cool listings and cabins are going to

pop up anyway so what is happening is

Airbnb is trying to build this different

type of brand loyalty where somebody can

search for a particular type of property

anywhere in the world and get the best

results for a castle and this gets

people to stay on the Airbnb platform

it's just another way that they're

trying to deliver an Untouchable

experience on Airbnb see like I just

told you Airbnb is no longer punishing

you for getting booked on verbo if

you're one of the best listings on the

planet they want you they want to show

you they want to Market you and collect

that 14 fee they want to do that but

Airbnb is looking for other ways to get

people from verbo which is to create

curations so don't be mad about the

categories section it's just a play that

Airbnb is making and it'll either pan

out or want but you're still going to be

in business you're still going to be

mult my channel you'll have a direct

booking platform hopefully if you're the

type of person that fits in the

categories you should be doing direct

bookings anyway so yes if you're a host

and you want to better understand the

algorithm or if you have an empty

calendar and you need to get back on the

algorithm's good side then click the

link in my description and sign up for

my re-algorithm event and I'm going to

teach you guys everything you need to

know this is the type of nerdy stuff

that you cannot pass up because as a

business owner your competitors are

going to wipe the floor with you if you

stay ignorant that this type of

competitive Advantage which is pleasing

your travel agency website algorithms

eventually I'll be doing one on verbo

I'll be teaching you guys about the

verbal algorithm once they get a little

bit more elegant they're doing some cool

stuff stay tuned for verbo video very

soon thank you for watching this video

and as always I'll see you on the other

side

foreign

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