Travel Articles

Article / Updated 03-17-2022

Determining a baseline pricing is finding the optimal amount you charge for your Airbnb listing under typical market conditions with average demand. Any adjustments you make to your pricing start from this baseline level. To establish the baseline pricing, you analyze comparable listings on Airbnb to create a pricing strategy that works for you. The following sections help you start pricing your listing so it’s competitive wherever you live. Study your competition: Gather comparable market data The best way to establish your baseline pricing is by looking at what your competition is charging in your market. You can think of your market as the tightest geographic radius that allows you to gather data for at least a dozen comparable and competitive listings. For example, in an ultrahigh-density urban market, this could be just a one block or even a minute walking radius. In the sparse country side, it could mean more than 10 miles or a 30-minute drive radius. In a typical suburban neighborhood, a safe starting point is three blocks or a 15-minute walking radius. You’ll need to adjust as needed for your specific area. Your competition includes the most similar Airbnb listings in your market — those similar in size (beds, bedrooms, bathrooms), amenities, and overall positioning in terms of pricing and target audience. For example, if your Airbnb listing is a one-bedroom unit targeting the budget-friendly traveler who doesn’t mind being a bit farther out from the main attractions, then your competition is similar, economy-focused one-bedroom Airbnb listings. However, if your Airbnb listing is a two-bedroom luxury condominium in a downtown luxury high-rise residence, your competition includes other two-bedroom luxury Airbnb listings. When studying the competition, gather at least a six (preferable a dozen or more) similar Airbnb listings and record the following information: Weekday rates: For each comparable Airbnb listing and hotel listing, collect the average weekday rates (Sundays to Thursdays) for four weeks, eight weeks, and 12 weeks into the future. Take the average of those five days for each of the three weeks for each comparable listing. Weekend rates: For each comparable Airbnb listing and hotel listing, collect the average weekend rates (Fridays and Saturdays only) for four weeks, eight weeks, and 12 weeks into the future. Take the average of those two days for each of the three weeks for each comparable listing. If you’re unable to find enough (at least six) comparable Airbnb listings in your market for your baseline pricing analysis, you can substitute with comparable hotel listings. For most Airbnb hosts, comparing to economy and midrange hotel offerings make the most sense. Identify the nearest two- and three-star hotels to your property and compare your studio or one-bedroom listing to their lowest priced offering. For larger properties of two- or three-bedrooms, compare to the lowest priced hotel suites. However, you may need to adjust your findings down by 15 to 30 percent because average hotel listings are often priced higher than their Airbnb counterparts in the same market. When you’re done collecting this information, you’ll have six data points for each of the listings you’ve identified for your comparison — three weekday averages and three weekend averages — resulting from 21 daily prices for each of the comps. Taking the average again of the average weekday and weekend rates for these similar listings gives you a good baseline pricing for your Airbnb listing in your market. The following figure shows an example with 12 comparable Airbnb listings and their corresponding data points for their weekday and weekend pricing. Tracking additional information for the comparable listings can help you understand the pricing dynamic in your market even better. Tracking additional information such as the listing URLs, property type, number of bedrooms, number of bedrooms, and number of bathrooms can assist you to fine-tune your baseline pricing analysis. Choose a baseline pricing strategy After you gather your data and have a baseline weekday and weekend pricing rate that you feel comfortable with, you need to figure out how to use that information. Here are three primary pricing strategies you can consider adopting to price your listing: Match market offering and charge less. If you intend to match the amenities and overall offering of your competition, you can gain an edge by charging slightly less than your competition. By offering the same amenities at a discount, you’ll be able to secure more bookings. Beat market offering and charge the same. If you intend to clearly beat the offering of your competition, you can gain an edge by charging the same overall pricing as your competition. By offering better amenities at the same price, you’ll also be able to secure more bookings. Make unique offering and charge premium. If your Airbnb listing offers something unique that guests value and the competition in your market can’t match, then you may be able to charge a premium. By offering something unique and valuable, you’ll be able to charge more than your competition. Depending on which strategy you find most fitting for your Airbnb listing, your baseline pricing will be lower than, about the same, or greater than the baseline pricing you found from the comparable listings. However, settling on your baseline pricing doesn’t mean you just set your pricing to these levels for the entire availability of your listing. At various times you want to purposely price lower or higher than your baseline pricing. We explore each of moments in the following discussions. Ramping Up to Baseline Pricing The first such scenario where you price differently from your baseline pricing is during your ramping-up period, typically the first two to four months after an Airbnb listing first goes live on the platform. During these first months on the platform, your objective is to build momentum for your listing as quickly as possible, not to maximize the profits of any individual bookings. To do so, get as many bookings and as many 5-star guest reviews as fast as possible. When a listing is fresh on the platform, it has no bookings and no reviews. All things equal, potential guests almost always book with listings that have more reviews than similar listings with no reviews. During your ramping-up period, follow this pricing schedule to build momentum for your listing: Start at 20 percent lower than your baseline pricing. Doing so underprices your listing relative to your competition right out of the gate. Wait for one week and check to see if your listing is mostly booked two weeks out. If mostly booked for the next two weeks, then stay the course until your listing is mostly booked four weeks out — aim for 80 percent plus occupancy. If not booked out, drop pricing by another 10 percent every week until you’re booked four weeks out. If more than four weeks are booked within the first week, then raise prices by 10 percent every week until you’re fully booked for the next four weeks or until reaching baseline pricing. After you reach the baseline pricing, sign up for third-party dynamic pricing software to monitor and adjust pricing going forward automatically. Be sure to note in your listing profile title and description that your listing is “NEW.” Doing so can help potential guests get comfortable with your lack of reviews and help them understand why your listing is priced so favorably versus competition — that it’s due to your newness and not some defect. Adjusting for seasonality When setting your pricing, sometimes you need to adjust for seasonality. Seasonality means the overall Airbnb demand — the occupancy and average nightly rates for Airbnb listings in the market — may be much higher or lower than their typical rates when travel is correspondingly much higher or lower than average. For example, Airbnb cabins by a popular ski resort may be booked almost every evening, even at much higher than average nightly rates during the high demand skiing season. However, these same cabins may have a hard time booking nights even at significantly discounted rates during low season when the snow has melted and far fewer guests want to spend their hot summer on these dry barren ski slopes. For some Airbnb markets with well-defined seasonal attractions, you can easily know whether there is seasonality in the market. But for many markets without obvious seasonal factors for travel demand, you can verify seasonality by obtaining the relevant market data for the prior 12 months (a full calendar year). The seasonality of your Airbnb market falls into one of these four categories: Flat seasonality: If the demand is the same all year around, then there is flat seasonality. In these rare markets, you can expect the occupancy and average nightly rates to stay about the same throughout the year. Often, flat seasonality is associated with low overall Airbnb travel demand for the market. High season only: If the demand spikes high for a part of the year but stays flat the rest of the year, then the seasonality is said to have a high season. In these markets, you can expect the occupancy and average nightly rates to spike higher only during the high season but stay relatively flat the rest of the time. Low season only: If the demand drops lower for a part of the year but stays flat the rest of the year, then the seasonality is said to have a low season. In these markets, you can expect the occupancy and average nightly rates to fall noticeably lower only during the low season but stay relatively flat the rest of the time. High low seasons: If the demand drops lower for a part of the year and spikes higher for a different part of the year compared to a middle level the rest of the year, then the seasonality has both a high and low season. In these markets, you can expect occupancy and average night rates both to drop during low season and spike during high season. The following figure shows what each of these four seasonality scenarios may look like if you plotted the average occupancy rates in these markets by month where 100 represents the annualized average occupancy rate. When you obtain the market data for a full calendar year for your market, you can notice that the average occupancy or nightly rates in your market will look like one of these scenarios. Fig. A shows a flat seasonality market, Fig. B a high season only seasonality market, Fig. C a low season only seasonality market, and Fig. D a high and low seasonality market. For all examples, the average occupancy rate during normal season is at 70 percent.

Cheat Sheet / Updated 02-25-2022

Becoming an Airbnb host can sometimes feel overwhelming with too much to do and too little time to do everything. But you don’t need to do everything all at once or at all to succeed. Often, in the mist of the mad dash to launch their listings and take on guests, new Airbnb hosts forget to take care of the basics. Focus on getting the basics right and you’ll be well on your way to Airbnb hosting success.

Article / Updated 12-23-2021

Driving in a foreign country can be disconcerting. Addressing common driving concerns (like driver’s licenses and road signs) when planning your trip to a Spanish-speaking country is invaluable. That way, you won’t be caught off guard by the differences in driving customs between where you’re from and where you’re going. Make sure you have a valid driver’s license Some countries, including Mexico, accept a valid driver’s license from your home country. Other countries may require you to have an International Driver’s License. You can get one from the American and Canadian automobile drivers’ associations, whether or not you are a member. The association itself can tell you which countries require an International Driver’s License. Know the Spanish signs of the road Most road signs in Latin America are based on symbols rather than words. This system makes them very easy to understand, no matter what language you speak. In fact, most driving signs have become quite universal; they’re much the same everywhere: A do not enter sign is a circle in a red field, crossed by a diagonal line. A stop sign is always an octagonal red field with white borders. Inside is a word such as pare (pah-reh) or alto (ahl-toh), instead of the English word stop. On the highway, left turns and right turns are indicated with signs that have a diamond shape with an arrow bent in the direction of the turn. A turn sign with a diagonal across it means no turn. Ask at the car rental office whether you should expect any road signs that you don’t understand. Whether at the airport or on the street, these two questions can come in handy when you need to find transportation: ¿Dónde arriendan autos? (dohn-deh ah-rreeehn-dahn ahoo-tohs) (Where do they rent cars?) ¿Hay oficina de renta de autos? (ahy oh-fee-see-nah deh rehn-tah deh ahoo-tohs) (Is there a car rental office?)

Article / Updated 12-23-2021

After you've gotten through the first year at your home university, you probably feel like you finally know all the buildings on campus, can find your way around town, know which professors to avoid, which dining hall is busiest at lunch, and of course, have made plenty of friends. So why leave this cozy little environment you've created for yourself just to go back to being the new kid on the block? Because your experience abroad is definitely worth the few trials and tribulations of starting over! Think of study abroad as just an extension of your studies at your home university. Your time away should be an integrated part of your four-year undergraduate academic plan. When you go abroad, you will likely take courses that, in some way, build on or add to the courses you are taking at your home university. Study abroad is also a great time to begin independent research projects. Increasing numbers of students conduct research abroad and then work with faculty members when they return to convert their projects into senior theses. Ready, set, grow! Studying abroad definitely challenges you on a personal level. Whether you consciously realize it or not, you develop a greater self-confidence, independence, and self-reliance. By the time you return home, you may feel like a super hero: You can do anything! Studying abroad may be the first time you are truly away from home — all your familiar surroundings here in the U.S., as well as friends and family. While this isn't always easy, most students agree that the benefits of giving up your familiar environment for a short period of time far outweigh the reasons to stay at home. Believe it or not, if you immerse yourself in a new culture, experiment with new ways of thinking, or try a different way of living, you naturally experience some sort of personal growth. After you master your new culture and the abroad academic life, you will return home much wiser and probably slightly impressed with yourself for having had a successful time abroad. Changing your perspective If you go abroad with an open mind, then you're certain to return to the U.S. a more enlightened person. One of the major benefits of studying abroad is its ability to broaden your world understanding and perspective on just about anything. You gain a different view of international affairs, from politics to economics to social issues. You also return with a deeper understanding and respect for your host country, knowing how another culture approaches daily life and unusual challenges. You may also return with a new appreciation for the U.S. Living in another culture can help you understand your own on a deeper level. You may return grateful for the way of life in the U.S., its political system, or its foreign or domestic policies. Through your interactions with your abroad professors, your new peer group, and other foreign or U.S. students on your program, you can find out what others think about the U.S. (and this is usually both positive and negative). While abroad, a new academic interest or perspective on your major may emerge. Studying at an abroad university allows you to study subjects that aren't available at your home university. You also study familiar subjects but from a different cultural perspective. For example, if you study international relations in France, it will be from a European perspective. Alternatively, studying the U.S. and American history from a different country's point of view can be fun. And, of course, all your classroom learning is enhanced by living in your abroad location and interacting with host families, housemates, roommates, or friends who are native to your abroad country. Jump-starting your career Studying abroad typically gives your resume a nice boost and improves your post-graduate employment prospects, particularly if you're considering a career in business, international affairs, or government service. Nowadays, employers actively seek college graduates who have spent time studying abroad because they want employees with an international knowledge base as well as foreign language skills. The same international skills that make you more marketable for employment are also valued by graduate schools. These skills include cross-cultural communication skills, analytical skills, teamwork, flexibility, an understanding of cultural contexts, the ability to adapt to new circumstances and deal with differences, a developed view of the world outside the U.S., independence, and self-confidence. Experiencing a different education system Institutions of higher education outside the U.S. function differently than what you're accustomed to. Even if your program is directed by a U.S.-based school, your experience can still differ because U.S.-based programs often employ local professors. In the U.S., most students pay to go to college. It's kind of a pay-for-service model in which students pay for the education and in return expect their professors to conduct lectures, foster class discussion, hold office hours, and so on. This isn't usually the case in other parts of the world. If students don't pay for school or if the government (maybe through taxes) subsidizes tuition, then students don't feel as entitled. The tables are turned. Students have the privilege of going to school and therefore, it is up to them to take responsibility for their own learning. Abroad universities are much less focused on grades. They care more about learning to increase understanding and knowledge. Therefore, you can expect much more of a lecture format to your classes and not much (if any) class discussion or participation. You can also expect to have less one-on-one interaction with your professors. (Professors at your abroad university may not even be required to hold weekly office hours.) However, the flexibility of curriculums abroad often gives students at abroad universities more freedom to explore their own interests within a course than would be allowed or even feasible in the U.S. The difference in set ups between your home university and your host university doesn't mean you should assume that academics are easier abroad. All of these differences don't mean that the education you receive while you're abroad is better or worse than the education you get at your home university — it's just bound to be different. If you don't like your abroad classroom or learning style, chalk it up to a learning experience. Accept the challenge to learn in a different way, in a different cultural setting. Before you take the plunge, think about your own personal reasons for wanting to go abroad because when you return from studying abroad, you'll assess whether you achieved your goals or hopes for studying abroad. Whatever your reasons for studying abroad, make sure that they are not only attainable, but also positive. For example, learning a second language, studying about another culture, diversifying your studies, preparing for graduate school, or traveling to meet new people are all good reasons to study abroad.

Article / Updated 12-23-2021

Germany has 13 wine regions — 11 regions in the west and 2 regions in the eastern part of the country. German wines are mostly white. They’re fruity in style, low in alcohol, rarely oaked, and often off-dry or sweet. Their labels carry grape names, which is an anomaly in Europe. Germany is the northernmost major wine-producing country in Europe — its climate is cool. Except in warmer pockets of Germany, red grapes don’t ripen adequately, which is the reason most German wines are white. The climate is also erratic from year to year, meaning that vintages do matter for fine German wines. Germany’s finest vineyards are situated along rivers such as the Rhine and the Mosel, and on steep, sunny slopes, to temper the extremes of the weather and help the grapes ripen. Riesling and other grape varieties In Germany’s cool climate, the noble Riesling grape finds true happiness. Riesling represents little more than 20 percent of Germany’s vineyard plantings. Another major, but less distinguished, German variety is Müller-Thurgau, a crossing between the Riesling and Silvaner (or possibly Chasselas) grapes. Its wines are softer than Riesling’s with less character and little potential for greatness. After Müller-Thurgau and Riesling, the most-planted grapes in Germany are Silvaner, Kerner, Scheurebe, and Ruländer (Pinot Gris). Among Germany’s red grapes, Spätburgunder (Pinot Noir) is the most widely planted, mainly in the warmer parts of the country. Germany’s wine regions The most famous of Germany's 13 wine regions is the Mosel-Saar-Ruwer region, named for the Mosel River and two of its tributaries, along which the region’s vineyards lie; and the Rheingau region, along the Rhine River. The Rhine River lends its name to three other German wine regions, Rheinhessen, the Pfalz (formerly called the Rheinpfalz), and the tiny Mittelrhein region. Following are descriptions of notable wine regions in Germany: Mosel-Saar-Ruwer: The Mosel-Saar-Ruwer vineyard rise steeply on the slopes of the twisting and turning Mosel River. The wines of the region are among the lightest in Germany (usually containing less than 10 percent alcohol); they’re generally delicate, fresh, and charming. Riesling dominates the Mosel-Saar-Ruwer with 57 percent of the plantings. Rheingau: The Rheingau is among Germany’s smaller wine regions. It, too, has some dramatically steep vineyards bordering a river, but here the river is Germany’s greatest wine river, the Rhine. The Riesling grape occupies more than 80 percent of the Rheingau’s vineyards, many of which are south-facing slopes that give the Riesling grapes an extra edge of ripeness. Rheinhessen: Rheinhessen is Germany’s largest wine region, producing huge quantities of simple wines for everyday enjoyment. Liebfraumilch originated here, and it’s still one of the most important wines of the region, commercially speaking. The Rheinhessen’s highest quality wines come from the Rheinterrasse, a vineyard area along the river. Pfalz: Almost as big as the Rheinhessen, the Pfalz has earned somewhat more respect from wine lovers for its fairly rich and full-bodied white wines and its very good reds — all of which owe their style to the region’s relatively warm climate. Müller-Thurgau, Riesling, Silvaner, and Kerner are among the most planted grape varieties of the Pfalz, but qualitatively Scheurebe and Blauburgunder (Pinot Noir) are important. Nahe: One other German region of importance for the quality of its wines is Nahe, named for the Nahe River and situated west of Rheinhessen. The Riesling wines produced here are relatively full and intense.

Article / Updated 12-23-2021

If you want to travel internationally, you will need a passport. Passports are approved by the U.S. Department of State, Bureau of Consular Affairs. In order to apply for a passport, you need to fill out the application, collect the appropriate documents for submission, prepare the fees, and submit your material to an acceptance facility. To submit a non-expedited, first-time passport application, you will need: Form DS-11: This and other forms necessary for passport applications or renewals are available at the U.S. Department of State, Bureau of Consular Affairs Forms page. Identification documents: Your identification can be authenticated with a U.S. passport (may be expired) Driver's license Certificate of Naturalization or Citizenship Government employee ID U.S. military ID Valid foreign passport Matricula Consular (Mexican Consular Identification) Proof of citizenship: This could include A U.S. passport (may be expired) A U.S. birth certificate A Consular Report of Birth Abroad or Certification of Birth A Certificate of Naturalization A Certificate of Citizenship A current photo: Some passport acceptance facilities will provide this photo for a charge. The photo must be 2 x 2. You should be facing the camera, wearing normal clothing, with no adornments on your head or face (including hats, glasses, or headphones). Check the Bureau of Consular Affairs website for more specific requirements regarding passport photos. The required fees: Make sure you have separate payments prepared for the application fee and execution fee. This table outlines the fees associated with the regular six to eight-week processing period. Once you have collected all of the necessary documents and have the fees prepared, you will submit all material to a passport acceptance facility or at a passport agency (if you meet the requirements for expediting). How long does it take to get a passport? The normal processing period for a passport is six to eight weeks. However, if you are experiencing special circumstances, you can sometimes expedite the service so that you receive your passport more quickly. Certain situations may qualify for expedited service. Without explanation, you can apply for expedited service with an additional fee of $60. In this case, you should receive your passport within two to three weeks. If you are experiencing special circumstances, you may be able to get a rush order. These situations include A travel date within two weeks: In this case, you must make an appointment with a passport agency or center. A life or death emergency in your immediate family: If this situation should arise, you will need to make an emergency appointment with a passport agency or center. Find more information on the U.S. Bureau of Consular Affairs website. Where to get a passport The Department of State's Bureau of Consular Affairs, Office of Passport Services/Customer Service elects certain entities to accept passport applications as a representative. Typical places that accept passport applications include: Libraries Post offices Local government offices Clerks of court Visit the U.S. Department of State’s website to find a representative in your area. Simply enter your zip code and adjust the distance requirements to find the passport acceptance agency nearest to you. If you need a passport within two weeks or less, you must visit an actual passport agency or center, rather than an elected passport acceptance facility.

Article / Updated 12-23-2021

If you’re already putting in the time and energy to hosting on Airbnb, why not get the most from your hosting efforts? This list has ten strategies that have helped hosts to earn more while hosting. Put your best listing forward Most new hosts who complain about not earning as much as they want have low hanging fruits with their property listing, which can include having photos taken from their phones from the wrong angles with poor lighting at the wrong time of day. Or they have poorly written descriptions and boring titles. Unless you have the best listing profile you can have for your property, you won’t come close to earning your full potential as a host. Ask guests to leave reviews Although Airbnb will send an email to guests, reminding them to leave a review after their check-outs, hosts who reach out to guests with a friendly reminder will get more guest reviews. Having more reviews, especially from happy guests raving about their wonderful stays, will lead to more bookings and profits by making your Airbnb listing more appealing to future guests. However, asking for more reviews when you’re not meeting guest expectations consistently is just asking for trouble. Tailor amenities to your audience Understanding who your guests are can help you better cater to their specific needs. For instance, business travelers have very different needs than families with young children. Pay attention to the type of guests who stay at your listing and look for ways to add relevant amenities. For example, having family-friendly games can help attract family travelers while having a dedicated work station can appeal to the business travelers. The more you can make your listing an easy decision for your target traveler audience, the more bookings you’ll get. Offer add-on goods and services After your guests book with you, you’ll have a captured audience during the length of their stay. Why do hotels offer minibars? Some guests want to drink. You can do the same by offering a menu of extras like alcohol or breakfast to earn extra income. Hosts can also provide services like pickup and drop-off, guided tours, home-cooked meals, or equipment rental to increase earning potential. Use appropriate pricing Charge too much and you risk having more unoccupied nights. Charge too little and you miss out on profits you could have earned from guests who already chose your listing. Figuring out the right price to charge for your listing for any given night requires that you account for many factors that affect pricing, including your competitors’ pricing and availability, seasonality, and special events. Successful hosts understand they can’t do that manually and instead use a third-party pricing tool to set the ideal pricing for your listing automatically. Host more listings You can earn only so much from a single listing. After you’ve reached maximum occupancy charging the highest rates your market can support, there is little you can do to increase your earnings from that listing. But add another listing or two, and you can quickly grow your earnings on Airbnb. One of the best ways to do that is to offer your hosting services to a property owner who doesn’t want to host themselves. Doing so creates a win-win — hands-off profits for the owners and more earnings for you as a host without having the risk of buying or leasing another property. List an Airbnb experience Renting a property is not the only way to earn money on Airbnb. A recent but fast-growing opportunity on the platform is for hosts to list an activity rather than a property. Hosting an Experience over a property has many benefits and can help you grow your earnings substantially on the platform. Think long term Would you take $10 more now to lose $100 later? Probably not. Yet many new hosts make a similar trade-off by taking small short-term gains for bigger long-term losses. Yes, providing an extra supply of incidentals will mean higher costs per stay as guests use more of those items, but this small investment now prevents negative guest reviews that later lead to long-term losses from lost bookings. Similarly, hosts in hot or cold areas where energy costs can be very high for extended air conditioning or heater usage, can earn more in the long term by investing in solar panels that cut energy costs to zero while potentially adding value to their property. Although Airbnb is by far the most prominent example of the growth of sharing economy, it isn’t the only model. If you find that your listing isn’t getting enough bookings on Airbnb, you can look at alternatives like VRBO, HomeAway, FlipKey, and Bookings.com to just name a few. Putting your listing on multiple platforms requires the use of vacation rental management tools to help you manage the multiple listings and calendars to avoid double bookings and scheduling confusion. These tools can be costly so the option isn’t ideal for properties in low demand markets. Rent something else If you search online, you’ll quickly find Airbnb-like platforms targeting some other underutilized asset. Have a rarely used car you can rent? There’s an Airbnb for cars. A boat, backyard, garage, tools, gear, office, you name it. There’s an Airbnb for whatever that is. Some platforms could complement your hosting operation while others are an entirely separate operation. Avoid catastrophic losses Getting a huge fine from the city or having to make a costly replacement due to damage can wipe out an entire year’s worth of earnings. To avoid potential big losses, be sure to check and comply with local laws, keep all receipts and documentation if you need to make an insurance claim, and make timely repairs of all safety-related issues to limit liability risk. If you have assets greater than one million dollars, you should purchase additional insurance coverage on top of Airbnb’s insurance policy.

Article / Updated 12-23-2021

Even though both launching and maintaining a successful Airbnb listing takes planning and effort, as a host, doing some simple things can help you earn more, stress less, or both. Here are ten helpful tips for happy hosting. Research your market before hosting Smart hosts research their market before hosting to know exactly what to expect in their market. Some would-be hosts choose not to become Airbnb hosts after finding out that a traditional rental of their unit would perform better. Become a guest first The best hosts know what it’s like to be guests first. So, before you jump into hosting with both feet, book your stays on Airbnb for your next trips. Experience the entire process from start to finish as a guest — from searching on the platform and booking to checking in and checking out. Note all the moments you felt confused, irritated, relaxed, or elated. These moments can point to both things to replicate or avoid in your practice as a host. Even better, enjoy a few “staycations” by booking reservations at existing local listings in your city. Invite but never impose Guests traveling from different places come stay at your listing for different reasons. Some come to relax. Some want to meet and hang out with strangers. Some want quiet time. Never assume you know the preference of any guests unless they tell you explicitly. For example, if you’re hosting a dinner party with friends and family and want to extend an invitation to your guests, make sure they know it’s an open invitation with zero expectations. Come if they want. If not, no biggie. The more you host, the more you’ll develop intuition for how and whether to extend invitations with each specific guest. Offer more than promised Promise the stars and deliver the moon? Disappointment. Successful hosts who wow their guests consistently know to properly manage expectations with their listing profile and their communications with potential guests. This means having great but honest photos and descriptions and then offering little but unexpected extras for the guests. Offering killer home-baked cookies? A bottle of wine from a local vineyard? Fresh roasted coffee beans from a local roastery? Let your guests discover them as surprises when they arrive. Touch base with your guests regularly For every guest who reached out to you directly with a question or complaint, there probably were a few more with the same question or complaint who didn’t reach out to you. Some people are shy. Some don’t want to feel bothersome. Send a short and inviting message to your guests like, “Good morning! Just wanted to see if you had any questions or requests. Call/text me anytime. Here for you,” the day after check-in and at least once every three days. Doing so lets the guests know it’s more than okay to reach out to you if they need something. Use tiny helpful labels Checking into a stranger’s home after a long day of travel, many guests will want to settle in and relax before the next day’s adventures. But that can be tough if they don’t even know which switch works for which light or if they have to open all the cabinets just to find the extra trash bags. One simple way to show your guests you’re thinking of them is to place small but conspicuous labels next to switches, cabinets, drawers, or doors in the house. Keep these small and visible only up close so they don’t show up on normal photos. Use a color scheme and a font that fits your overall decor, and they will look as intentional as they are useful. Always have extra supply Not having an extra supply of essentials like toilet paper, paper towels, soap, and all linens will ruin an otherwise great Airbnb experience for your guests. No one will enjoy having to make a trip out to the local store to get toilet paper because the host provided only a starter roll. Being penny-wise and pound foolish may save you a few bucks in the short run, but unhappy guests will leave you scathing reviews that cost you bookings in the long run. Keep the extra supply out of sight to encourage more frugal use of supplies and provide it to guests happily when asked. Use action shots in your photos Showing guests what they could be doing in your listing is much better than telling. Yes, well-composed photos help, but putting people in some of the photos enjoying the space or showing the action will make for a more compelling pitch and result in more bookings. Have a hot tub in the backyard overlooking a picturesque sunset? Put a couple of friends in there and silhouette them against that sunset. Have a firepit in the back ideal for making marshmallow s’more sandwiches? Show the marshmallows roasting on the open fire. Have a billiards table for guests to enjoy? Don’t show an empty table but take a photo with the blurry moving cue ball just about to collide with another ball. Disclose and highlight potential negatives up front Getting long-term success for your listing is as much about avoiding the wrong kind of guests as it is attracting as many guests as possible. Have an extra friendly cat that likes to greet guests? Talk about Waffles and his nosy manners in the descriptions and add a photo. Yes, doing so will turn off many guests who don’t want to share their stay with a cat, however friendly. But it also will make your listing more appealing to guests who love cats. Honest disclosure enables you to both attract the right guests who would appreciate the listing as it is and discourage those who wouldn’t enjoy it from booking in the first place. Measure return on time Could earning more from your listing ever hurt? Yes, if it means having to put in a disproportionate amount of extra work. Would you rather earn $1,000 a month from two guest stays or $1,200 from 15 guest stays? Many will choose the more relaxed two guest stay with far less turnover work. As you host, instead of only seeking ways to squeeze every dollar out of your listing, look instead on how you can free up your time by using automation tools to simplify pricing and communications or using smart locks to eliminate time-consuming in-person check-ins. Sometimes, profit per hour of input is more important than total profits.

Article / Updated 12-23-2021

After your guest checks out, your work as their Airbnb host still isn’t complete. The hours and days afterward are an opportunity for you to put the finishing touches to a successful reservation. After checkout is a great time to follow up with your guests and provide some incentives to encourage potential future bookings. You should also check the condition of your property, especially if you suspect any potential for damage or theft. Assessing the state of your property Whether you’re doing the turnover yourself or hiring a cleaner to do it for you, make sure you or the cleaner accesses the state of your property after your guest checks out. A simple checklist to account for the both the presence and condition of all major appliances and furniture will do. Filing a claim with Airbnb If you find damage or missing items, take good photos for documentation and file a claim with Airbnb against the security deposit and/or Airbnb Host Guarantee right away. Include any written communications between you and the guest that corroborates or supports your claim, especially for any retaliatory damages. You have until your next guest check-in or up to 14 days to file a claim, whichever occurs sooner. In most cases, your window for filing a claim is just the few hours from the prior guest’s checkout to the next guest’s check-in, typically between 11 a.m. and 4 p.m., making it a smart move for you to assess your property during each turnover. After your next guest checks in, you can’t make a successful claim because the damage or theft could now be due to the next guest. For minor claims that can be made on the security deposit, you can follow these steps: Go to www.airbnb.com/resolutions. Click on “Request money.” Select the appropriate reservation to make your claim. From the “Select a reason” options, chose “Request compensation for damages.” Click on “Continue.” Type in details of specific damages or reasons for the claim and requested compensation amount. Submit to complete your request. Your guest will have 72 hours to accept your request, which would then be paid out to you in approximately five to seven business days. However, if your guest doesn’t respond or refuses to accept within 72 hours, you can log back into your Airbnb account, go to the Resolution Center, and choose the “Involve Airbnb” option to bring Airbnb in to help resolve the claim. Airbnb may ask for additional information, such as receipts or proof of the condition of the damaged item prior to the reservation in question, which you must provide within 72 hours. According to Airbnb, most claims on security deposits are resolved within a week. Following up with your guests With guests receiving so many notifications from just about everywhere, many hosts are hesitant to add one more message to their guests’ inboxes. But sending a follow-up thank you note can make the all the difference for your performance. Send a thank you note within 12 to 24 hours after their checkout and include these three important items: Expressing sincere appreciation Share your sincere appreciation with your guests for choosing to stay with you. They could have chosen any other Airbnb listing in your area, but they chose to stay with you. Thank them for being great guests if they left your property in good condition and were otherwise pleasant for you to host. Not only will this prime your guests to be in a better mood when reading your note, it may also encourage them to look back at their stay through a more positive lens. Asking your guests for a review From our own survey of hosts, the percentage of their guests that leave reviews can range from as low as 30 percent to as high as 100 percent. Even though Airbnb now automatically sends emails to remind guests to leave reviews after checkout, these messages can get lost in their inboxes or guests may simply ignore them. Asking your guests to consider leaving you a review can drastically increase the percentage of your guests who end up leaving reviews. Asking is especially crucial if your listing is new with little to no reviews. Notify your guests that you’re quite new to hosting and that every review helps tremendously. Guests who’ve otherwise enjoyed their stay with you are typically eager to oblige. In addition, Airbnb has many requirements when evaluating a host for Superhost status. One is that at least 50 percent of the guests who stay with the host end up leaving a review. By not asking your guests to leave a review, you risk falling below on this metric right from the start. Providing incentives for future stays A good way to end your thank you note to your guests is to offer them an incentive to book a future stay with you. Many hosts offer a discount of 5 to 15 percent to former guests and their family and friends. The sample note above hits on all three points: expressing sincere appreciation, asking for reviews, and offering value. Use the template to create your own. For guests traveling to visit family for on an annual trip, they may well take you up on the offer. During low season periods, getting referrals can help you fill up some nights that otherwise would stay vacant. Blocking out a day or two before and after reservations for preparation time In rare situations, you may need to block a day or two in between reservations to have enough time to turn around and prepare the property for the next guests. Consider blocking off a day or two before and after each reservation if your property needs extra time for a proper turnaround. For example, if you have a listing within a large building and many amenities on a vast property where you and your cleaners require more than four to five hours to properly clean and turn, add the extra day or two in between reservations. If you’re not seeking to maximize your profits and would prefer a more relaxed hosting experience, adding the extra day or two between reservations reduces the hectic chaos that could ensue for same-day turnarounds. However, adding this extra buffer means giving up those days of potential revenue because you’d be blocking those days off with each reservation that comes through. If your typical reservation lengths are short, say on average three days, then blocking off one day before and after takes your available days for booking down by 25 percent. The impact is less severe if your guests typically book long stays, such as losing a day or two for a three-week average stay length. To block off one of two days between reservations, follow these steps: Log into your Airbnb account. Select “Availability settings” from your Calendar Select the dropdown menu under the “Preparation time” label with the coffee cup icon Select either “Block 1 night before and after each reservation” or “Block 2 nights before and after each reservation.” Select Save. Choose the one-day option first to see if that’s enough time for you. You don’t need to block off more days than necessary unless you prefer the extra break between guests.

Article / Updated 12-23-2021

The best way to estimate your profit potential on Airbnb is to find out what similar listings in your neighborhood are already earning on the platform. But how do you find out? You gather performance statistics — the occupancy rates and nightly rates—for existing listings in your market with which you’ll be competing. Picture yourself running a nice one-bedroom Airbnb listing in your city. After all the operating expenses that include supplies, utilities, and cleaning, say you’re able to pocket a tidy $1,000 per month in profits. Should you be happy with your performance? Are you doing well as a host? What if we told you that the other one-bedroom Airbnb listings in your market are making only $500 per month in profits on average? That would mean you’re earning twice as much as your competition! You should feel good about that because that means you’re executing well as an Airbnb host. But what if, instead, your competition is earning $3,000 per month in profits on average? You wouldn’t be feeling too good about that information. If hosts with similar listings in the same market are earning three times as much as you are, you’re doing some things wrong as a host. In the early years, you would have to gather and estimate these statistics manually, a painfully laborious and inaccurate exercise that took hours to complete only to be outdated immediately. However, the growth and maturation of short-term rental data providers in recent years have provided fast, accurate, and up-to-date statistics to aspiring hosts for a nominal starting at just $20 to access local market reports. Some providers offer free limited reports or free trials occasionally, so make sure to search the web for a recent offer before making a purchase. Get the free reports and trials to see which one you like and then get a one-month subscription for full access to the market data in your market. You can’t get the statistics on your own, and even if you tried, doing so would take you many painful hours to days to put together an inaccurate data set. Don’t waste your time! You can always cancel your subscription after the first month. However, we recommend ordering the reports at least once a year to keep a pulse on your market and to gauge how your listing is faring against your competition in the market. You need to look beyond the published asking nightly rates of similar properties on Airbnb — just because a few listings ask for $250 per night doesn’t mean guests are paying that much, nor does it mean that these listings are able to fill their availabilities at this rate. And what the performance is like during one part of the calendar may look entirely different during other parts of the calendar. So, in addition to understanding the nightly rates, you need to look at other market metrics and considerations to access your profit potential accurately. Finding the crucial market statistics Regardless of which data provider you ultimately go with, you want to pay attention to a few key statistics when assessing the viability of hosting your property in your market. Here are the statistics to get and why pay attention to each: Daily rates: The best way to know what you’ll be able to charge is to find out what identical or similar listings in your market can currently charge guests. Although obtaining market averages is better than having nothing, getting a range of daily rates is more useful because a few very high performing or very low performing listings can artificially inflate or deflate the average figures in the market. For example, AirDNA market reports will also give you the 25th, 50th, 75th, and 90th percentile figures. Most hosts should use the 50th percentile figure (median) for their initial estimate unless they have reason to place their listing as more or less attractive than competitors to use the 75th or 25th percentile figures instead. The chart above shows the average monthly rental revenue for one-bedroom listings in a select city in Los Angeles, shown at the 25th, 50th, 75th, and 90th percentiles. For example, to achieve rental revenue rates at the 90th percentile line, your listing would need to be among the top 10 percent of listings in the market. Occupancy rates: Occupancy rates are the percentage of available nights that are booked. For example, an Airbnb listing that is made available for rental for 100 days out of the year and is booked 65 days has an occupancy rate of 65 percent (65 divided by 100). Just knowing the daily occupancy rate isn’t enough if you don’t know how many nights are being booked in the market. Similarly, obtaining a range of occupancy rates rather than just an average is more useful. Take an honest assessment of your listing compared to the existing listings on the platform that are your competitors. Compare your listing to this entire set of direct competitor listings, ideally at least ten. Is your listing in a more attractive location versus the others? Does your listing look newer, more modern, or luxurious? Does your listing have more appealing amenities? Where does your listing place among this set? For an older property farther away from points of interest than competition, you may need to use the 25th percentile figure for your estimate because your listing will likely attract fewer guests. Alternatively, for an attractive new listing located immediately adjacent to the top performing listings in the market, you may use the 75th or 90th percentile figures instead because you can reasonably expect similar levels of performance to the top performers. Rental revenue: The top data providers will calculate the rental revenue figures for you and often present them in the same way they’ve presented the daily rates and occupancy rates data. Again, looking at the range is more helpful than the simple average. Brace yourself when you look at these figures the first time because many prospective hosts often have mismatched expectations from reality. For example, a prospective host whose expectations are colored by the news articles covering the new breed of six figure Airbnb hosts might be sorely disappointed to discover he’ll likely earn far less than six figures in his market. Better to know the truth early even if disappointing than to find out later after investing significant time and resources. Although getting annualized figures are useful to understanding where your average daily rates, occupancy rates, and annual rental revenues may fall, you’ll want to look at the monthly figures as well for the prior 12 months. Why? Some markets may have pronounced seasonality where the demand is much higher or lower during some months than others. Having this knowledge can better help you prepare for both the high and low travel seasons in your market. Understanding the market deeper Each data provider will provide the three basic statistics for their users that we mention in the previous section. However, to stand out from their competition and to further entice their potential customers to choose them over others, the top listing data providers offer many additional statistics about the market. Here are some other useful things you may find: Market mix: The market mix is basically a relative ratio of different types of Airbnb listings in a given market. For example, the market mix for Airbnb listings by a large lake may skew toward cabins whereas in a downtown urban market it may skew toward one- and two-bedroom apartments. This information lets you determine what the current composition of active Airbnb listings is, including whether more studio and one-bedroom units are being reserved compared to larger units with three or more bedrooms. Knowing the respective performance of the different subsets of listings can tell you what the travelers to this market are demanding. For example, if the top performing listings are all private room and studio listings whereas the few large big house listings are mostly unoccupied, you may want to explore turning your five-bedroom house into multiple private room listings instead — you can’t rent what people don’t want. Long-term trends: Understanding recent statistics tell you where the market is today, but those stats doesn’t tell you how the market got where it is. Is the market growing or shrinking? Only by looking at several years of data can you spot this trend. With Airbnb increasing in popularity, more listings are coming online in more markets. However, in some markets, the influx of supply without a complementary growth in demand means more hosts competing for the same number of guests, leading to higher competition, lower pricing and occupancy, and ultimately lower profits for hosts. Amenities statistics: To understand how your property stacks up against your competition you need to know what your competition is offering. By looking at the amenities that everyone else provides and what only the top performing listings offer, you can determine exactly what amenities you need to compete and what you can aim to have to stand out. Future statistics: Some data providers have a direct data feed of hundreds of thousands of listings that allow them to know future occupancy and rates of competing listings. With this information you can price your future available dates to remain competitive. Top listings: Being able to see the performance of the top listings in your market based on actual performance data provides a target to aim your performance. With this information you can scrutinize every aspect of these top listings from their photos and title to their descriptions, pricing, and policies. You can’t emulate the best without first being able to identify the best. Rating statistics: How guest ratings are distributed across property types and among your direct competitors can tell you how competitive your market is. The higher the ratings for existing hosts, the more competitive the market and the less margin for you to make hosting errors with your guests. Granular seasonality: Even though monthly figures help you spot broad seasonality trends in your market during the calendar year, having access to market performance for each day can help you spot and prepare for unusual spikes in travel demand. For example, an annual conference that brings in thousands of travelers can lead to overbooking during those specific dates. Refer to the figure for an example to see the full year seasonality for a market. In some markets, Airbnb travel demand is seasonal and varies significantly depending on the month of year. In addition, certain recurring special events can also create unusually high demand during specific days of the year. Knowing when they occur and how much impact they have on demand allows you, the host, to price your listings appropriately. Traditional rental statistics: For investors who wish to purchase property for renting them on a short-term basis on Airbnb, comparing the traditional rental market statistics in that market to short-term rental statistics is crucial to making a sound investment decision. Other statistics: If it’s an attribute you must decide on for your listing, chances are the data providers are tracking and sharing the results to their users. This information includes how others are handling minimum stays, security deposits, cleaning fee rates, cancellation policies, and more. From our experience and those of our readers and students, hosts in different cities and countries find different data providers to be more or less accurate for them individually, so it’s worth first exploring several options to see which will work best for you.