Top Airbnb Market Research Techniques & Tips on Where to Airbnb in 2022

Summary

This 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

• 🔍 Conduct thorough market research before selecting a property for Airbnb to understand demand, supply, and competition.
• 📈 Utilize Airbnb's platform data for free to perform market research without needing to pay for external tools like AirDNA or Mashvisor.
• 🏠 Focus on both broad market trends and individual listing data to get a comprehensive view of the market.
• 🈵 Understand the cap on Airbnb's search results at 300 listings to gauge the sample size for your analysis.
• 📅 Search for different date ranges to determine how many listings are available for various stay lengths and identify patterns in booking availability.
• 🛏️ Analyze the number of available listings for different guest counts to find out which group sizes are underserved in the market.
• 💰 Use the price distribution chart on Airbnb to see which price points have the most listings and identify trends in booking prices.
• 📊 Compare price charts for different search parameters to see which listings are getting booked and at what prices.
• 📈 Track the booking rate over time to understand how quickly listings in different price brackets get booked up.
• 🏆 Identify underrepresented market segments, such as listings that can accommodate larger groups, to find potential opportunities.
• 📝 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

00:00

🔍 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.

05:02

📈 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.

10:02

🏠 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.

15:02

📊 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.

🚀 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.

Keywords

💡Market Research

Market research is the process of gathering, analyzing, and interpreting information about a market, including customers, competitors, and market conditions. In the context of the video, it is the most crucial step before selecting a property for Airbnb. The video emphasizes that understanding market trends and data is vital for making informed decisions about property listings and pricing strategies, as demonstrated by the various searches and data analysis performed.

💡Airbnb Platform

The Airbnb platform is an online marketplace that allows property owners to rent out their properties to travelers. The video script discusses how this platform provides free access to valuable market research data, which is a significant advantage for hosts looking to optimize their listings. The platform's data is used throughout the video to illustrate the process of analyzing market demand and supply.

💡Availability

Availability in the script refers to the number of listings that can be booked for specific dates and guest counts. The video demonstrates how to use Airbnb's search filters to determine the availability of listings, which is a key factor in assessing market demand. For example, the script mentions that over 90% of listings in a neighborhood are booked for a particular weekend, indicating high demand.

💡Demand

Demand in this video is the desire and ability of customers to consume a product or service, in this case, Airbnb listings. The script shows how to establish demand by comparing the total number of listings with the number of available listings for certain dates. High demand is indicated when most listings are booked, suggesting that supply is meeting or is insufficient for the level of demand.

💡Supply

Supply refers to the amount of a product or service available for consumers, here specifically the number of Airbnb listings. The video script discusses how the supply of listings changes based on different search parameters, such as the number of guests or minimum stay requirements. An imbalance between supply and demand can indicate market opportunities or saturation.

💡Minimum Night Stay

Minimum night stay is a requirement set by Airbnb hosts that specifies the shortest duration for which a guest can book a listing. The video script uses this concept to analyze how the availability of listings changes with different minimum stay requirements, which can affect both the supply of listings and the strategy for getting bookings.

💡Booking Strategy

A booking strategy is a plan that hosts use to maximize the number of reservations they receive. The script explains how analyzing data on listing availability and minimum night stays can help develop a booking strategy. For instance, hosts can offer discounts for longer stays or charge a premium for last-minute bookings based on the data gathered.

💡Price Distribution

Price distribution refers to the range of prices at which listings are available. The video script discusses using Airbnb's price filter to see how many listings are available at different price points. This information helps hosts understand the market's price sensitivity and where their potential listings might fit within the market's pricing structure.

💡Competitor Analysis

Competitor analysis involves evaluating the competition to identify their strengths and weaknesses. In the context of the video, it involves analyzing the data of other listings to determine what is getting booked and at what prices. This analysis helps in understanding the market dynamics and formulating a competitive strategy for one's own Airbnb listing.

💡Mentorship

Mentorship is a relationship in which a more experienced person (a mentor) guides and supports a less experienced person (a mentee). The script mentions the importance of mentorship in interpreting market research data correctly and making informed decisions. The mentor can provide insights and guidance that may not be apparent to someone new to the process.

💡Under-Serviced Market

An under-serviced market is a segment of the market that is not being adequately addressed by existing products or services. The video script uses this term to describe a situation where certain types of listings, such as those that can accommodate larger groups, are not sufficiently available, presenting an opportunity for new hosts to enter the market and meet unmet demand.

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]