It Wasnt A Bug .. Airbnb Algorithm Explained
Summary
TLDRThe 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
- π Figured out a bug in Airbnb's algorithm that was causing empty calendars.
- π Set up four new properties, all booked quickly after the 24-hour review window.
- π Airbnb made changes affecting listings, leading to empty calendars intentionally.
- π‘ Detailed explanation of how Airbnb's algorithm manages supply and demand, adjusting listing visibility based on market conditions.
- β οΈ Identified a temporary bug in Airbnb's interest metrics tracking, impacting some listings' visibility.
- π Split tested various factors like listing completion, pricing, and booking parameters to improve visibility.
- π οΈ Emphasized the importance of checking all listing options to optimize for algorithm performance.
- π Airbnb prioritizes views from first-page impressions and filling calendars to maintain listing quality.
- π Airbnb no longer penalizes for blocked calendars due to bookings on other platforms like VRBO.
- π 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
π οΈ 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.
π 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.
π 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.
Mindmap
Keywords
π‘Airbnb Algorithm
π‘Calendars
π‘Webinar
π‘Satisfaction Metrics
π‘Supply and Demand Curve
π‘Click-Through Rate (CTR)
π‘Interest Metrics
π‘Smart Pricing
π‘Reviews
π‘Blocked Calendars
π‘Category Stories
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
[Music]
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