As Airbnb Falls apart. Only these properties will Survive

Summary

In the era of oversupply in the Airbnb market, Sean from YouTube emphasizes the importance of novelty in property listings to stand out. He suggests focusing on unique design, contrasting with competitors, and creating a curiosity gap through artistic photos. Sean also discusses the significance of offering novel experiences and amenities that are underserviced in the market, such as ADA accessible spaces. He highlights the importance of market research to identify gaps and adapt to the local context, ultimately suggesting that being different and innovative is key to success in the short-term rental business.

Takeaways

• 😀 The ease of making money from Airbnb properties has decreased due to oversupply and economic factors leading to more real estate in the short-term rental market.
• 📈 To stand out in an oversupply market, Airbnb hosts should focus on creating 'novelty' in their properties to attract guests.
• 🏠 Novelty in design is crucial; hosts should aim for a unique aesthetic that contrasts with the competition and creates a curiosity gap for potential guests.
• 📷 The 'hero photo' of a listing should be strategically chosen to represent the property's uniqueness and should change with the seasons to highlight relevant amenities.
• 🌞 Novel experiences provided by a property, such as unique locations or themed stays, can be a significant draw for guests seeking something different from standard accommodations.
• 🎨 Market research is essential for identifying under-serviced amenities and opportunities to offer novel combinations that are not widely available in the local Airbnb market.
• 🛋️ Basic furniture and designs are being left behind; properties with a commitment to a full and unique design are more likely to be booked.
• 🚀 Novel amenities, such as EV chargers or ADA accessibility, can provide a competitive edge by catering to specific guest needs that are not commonly met.
• 💡 The concept of 'novelty' can be applied to various aspects of a property, including design, amenities, and the overall experience offered to guests.
• 🏡 Properties that are inherently unique or located in a remarkable setting can provide a novel experience without needing additional thematic elements.
• 📊 Cost efficiency in operations, such as hiring and managing housekeeping staff, is crucial for maintaining profitability in the short-term rental business.

Q & A

What was the initial ease of setting up an Airbnb property according to the script?

The script describes the initial ease of setting up an Airbnb property as simply requiring a bed on the floor, which would then be booked for a high price, leading to a quick cash flow and perceived wealth.

What factors have contributed to the oversupply of properties on Airbnb?

The oversupply of properties on Airbnb is attributed to the platform's previous reputation for easy money, the influence of 'covid-19 and revenge travel', inflation leading to real estate purchases, and economic factors encouraging people to invest in short-term rental properties.

What is the main theme suggested for profitable Airbnb properties in 2023?

The main theme suggested for profitable Airbnb properties in 2023 is 'novelty', which includes unique, hard-to-recreate aspects that set the property apart from the competition.

Why is 'novelty' important in the context of short-term rentals?

Novelty is important because it allows a property to stand out among a sea of similar listings, attracting guests who are looking for unique experiences and potentially leading to higher bookings.

What are the three areas of novelty mentioned in the script?

The three areas of novelty mentioned are: novelty in design, providing a novel experience, and offering novel amenities.

How does the script suggest improving the 'hero photo' of an Airbnb listing?

The script suggests using a photo that contrasts with the competition, possibly changing the hero photo according to the seasons to highlight relevant amenities, and considering artistic, zoomed-in shots to create a curiosity gap.

What is the significance of creating a curiosity gap in the hero photo?

Creating a curiosity gap in the hero photo is meant to intrigue potential guests, making them want to click on the listing to learn more, which can improve the listing's SEO and ranking on Airbnb.

How does the script relate the concept of novelty to the idea of market research?

The script relates novelty to market research by emphasizing the importance of understanding what the competition is offering and identifying gaps in the market where a unique property can fill a niche.

What is an example of a novel experience that could be offered by an Airbnb property?

An example of a novel experience mentioned in the script is providing accommodations in unique structures like spaceships, tree houses, or themed properties that are inherently experiential.

How does the script suggest using novel amenities to differentiate an Airbnb property?

The script suggests identifying under-serviced amenities in the market, such as EV chargers or ADA accessible spaces, and incorporating these into the property to attract guests who are looking for those specific features.

What is the importance of cost efficiency in running a short-term rental business according to the script?

Cost efficiency is crucial as it directly impacts profitability. The script highlights the importance of managing housekeeping costs, suggesting that having in-house staff can significantly reduce expenses and increase profit margins.

What advice does the script give on adapting to market changes in the short-term rental industry?

The script advises being flexible and adaptable, learning from market research, and being brave enough to implement unique designs and amenities that are not yet common in the market to gain a competitive edge.