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Thibault is the founder of Rental Scale-Up. He owns vacation rentals in St. Barths and Bali. He also leads innovative projects for companies within the vacation rental industry. Feel free to reach out to Thibaut Masson on Linkedin.

Evaluating the Evidence: A Closer Look at Data Provided by Airbnb on New Hosts’ Success

airbnb new hosts

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For local inhabitants and businesses, the disaster is also economic. Florida is a big travel market. With great beaches and world-famous attractions such as Walt Disney World and Universal Studios, the state attracts many families who book a vacation rental for their stay. Cities like Orlando and Kissimmee usually rank high in market size for vacation rental revenues.

Airbnb’s recent “Airbnb It” advertising campaign has been designed to convince more people to become hosts on their platform. The company has released data that backs up its assertion of how easy it is to join and begin making money. But what else have they revealed? We’ll take a closer look at the data, uncover any hidden caveats, and discuss the implications for existing hosts and property managers already listing on Airbnb.

How long does it take to get your first booking as an Airbnb host?

50% of New Listings Activated and Booked in Q3 2022 Receive Their First Booking Within 3 Days

Airbnb’s Message:

New listings secure reservations quickly.

Why Airbnb Wants You to Know It:

The “time to the first reservation” measure is a key metric for an online travel platform.

  • To hosts, this proves that Airbnb is helping them make bookings quickly so they can be satisfied with using the platform. Otherwise, a host may worry and even leave if their listing takes too long to get its first booking.
  •  For Airbnb, this also provides insight into the fit between supply and demand across different markets, properties, and types of hosts.

Caveats:

  • Although it is said that 50% of listings activated and booked in Q3 2022 received their first reservation within 3 days, this statistic encompasses more than just individual new hosts. It also considers experienced property managers who have launched a 100th listing and may be savvier in getting bookings quickly compared to a newly signed-up host who lacks knowledge on how to use the platform effectively.
  • Additionally, this figure does not reflect listings that went live without getting any bookings at all; it could be that 5%, 20%, or 40% of activated listings don’t secure any reservations and thus are not included in the data point from Airbnb presented here.
  • Looking at just new hosts, it is probable that the time to their first reservation is longer than what Airbnb states.
how much does an Airbnb host make

New Hosts who joined in 2022 earned over $1.5 billion in US income from January to September

Airbnb’s Message:

Being a new Airbnb Host is highly lucrative!

Why Airbnb Wants You to Know It:

After booking guests, success requires getting paid. That’s why they’re proud to show that their newly signed-up hosts grossed over $1.5 billion in the US alone over nine months in 2022.

Caveats:

  • The amount earned by each of these hosts is unknown – only the total pool is explicitly stated by Airbnb.
  • It’s possible to estimate each host’s income roughly, however – AirDNA reports 218,325 listings gained by Airbnb during 2022. Assuming 1.5 listings per host (on average), this translates to 145,550 new hosts from January to December, or 109,163 from January to September – the period of measured income growth for new Airbnb hosts.
  • This means that, on average, these new hosts earned about $1,527/month – an impressive figure!
  • However, the number of bookings and earnings from one listing to another can vary greatly: Private bedrooms rented out a few times a month yield lower returns than an investment property with an 80% occupancy rate over the same period.
  • So occasional hosts need to manage their expectations when they start using Airbnb.
how much time to become superhost

Nearly 40% of US Hosts that became active in January 2022 became Superhosts in under 9 months

Airbnb’s Message:

Becoming a Superhost is easy and attainable for new hosts.

Why Airbnb Wants You to Know It:

  • After booking and income, receiving the Superhost badge is another mark of success as a host.
  • The criteria to get the badge, such as high guest review ratings and at least 10 reservations, demonstrate the quality of the guest experience and the quantitive performance of the listing.
  • Airbnb has made becoming a Superhost highly desirable amongst those in the hosting industry.

Caveats:

  • Airbnb’s data only includes hosts who are still on the platform – it does not include those who have left since – meaning it is likely less than 40% that have become Superhosts from those starting initially.
  • Is being able to become a Superhost easily a good thing? The answer to this question is ambivalent; It may mean that something has been made too accessible, or it could be a milestone for those with only one listing on Airbnb who fulfill all the criteria quickly by focusing their bookings solely on Airbnb.

How will existing hosts feel about newbies becoming successful so fast?

The figures of nearly 40% of US Hosts that became active in January 2022 becoming Superhosts in under 9 months is impressive, yet raises questions about the implications for existing hosts.

If more hosts join the platform faster than demand can grow, then existing hosts rightfully worry that each listing will have fewer reservations (#airbnbust).

Additionally, new listings are given advantages such as being prompted to lower prices by 20% until they get 3 reservations and potentially up-ranking in search results for a period of time, making existing hosts feel undercut and overshadowed by newcomers.

Furthermore, if 40% of new tenants become Superhosts, does this mean those not achieving this level are second-class hosts who will never be chosen?

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