Is it worthwhile for vacation rental owners and short-term rental hosts to list and rent out via Airbnb? In our guide, you'll discover the benefits the booking portal offers.
Airbnb is an online portal for booking and renting accommodation that connects private owners (also known as hosts or landlords) with guests. Even if you already offer your vacation rental through other booking portals, such as Booking.com, VRBO, or your vacation rental website, it makes sense to create a profile on Airbnb as well. This way, you can target a new, younger audience and become even more successful as a short-term rental host.
A Channel Manager like Smoobu helps you keep track of your bookings and avoid double bookings. The software synchronizes your booking calendars across all booking portals in real-time.
What is Airbnb?
Airbnb was founded in 2008 by Brian Chesky, Joe Gebbia, and Nathan Blecharczyk in San Francisco. The marketplace aims to connect private vacation rental owners with their guests. In doing so, Airbnb provides a platform in the form of a website and mobile apps, helping with the rental process. In return, the company charges a service fee per booking. We will go into detail about the amount and composition of this commission later in this Airbnb guide.
The beginnings as Airbed & Breakfast
Initially, Airbnb was an Online platform that allowed private individuals to rent out vacant rooms in their apartments to supplement their income. Therefore, the booking portal was originally called Airbed & Breakfast ("air mattress and breakfast"). The name was shortened to "Airbnb" over time.
Initially, it was mainly about meeting friendly people and showing them the hometown. Guests were supposed to feel less like tourists, sequestered in a hotel and just checking out the sights from the guidebook. Instead, they should get to know the locals, become good friends, and receive lots of insider tips. Since Airbnb listings are often located in popular cities, they also serve as an affordable alternative to hotels in terms of price. The first accommodation rented through Airbnb was the founders' apartment, which was rented in 2008.
Today: Professional accommodations
In the meantime, many hosts, owners, and landlords of classic vacation apartments and vacation homes also use Airbnb to generate additional income. Booking is straightforward, and Airbnb's design and modern technology appeal to a new, more digital target group who book spontaneously using their smartphones.
Many Airbnb hosts still offer single rooms in their apartments and houses, but often also second homes and secondary residences. Some advertise their apartments only occasionally, when they are on vacation themselves, while others rent out the accommodations on a permanent basis.
Since its IPO at the beginning of 2021, Airbnb has also sought to expand in traditional vacation destinations. After all, bookings here are often much longer than for city trips. For Airbnb, more extended stays mean more revenue and are therefore a significant growth area. For hosts in these regions, this development is reflected in a steadily increasing share of Airbnb bookings.
Meanwhile, according to Statista, 5 million hosts, owners, and landlords worldwide advertise via Airbnb (as of March 2024). This has made it one of the most essential booking portals in the world.
Airbnb hosts and guests see themselves as part of the Airbnb community.
Anyone who wants to benefit from Airbnb hosting tools (whether an owner or guest) must first create an account on the Airbnb website. In doing so, there are some mandatory details to ensure that it is a real person. Since the profiles are rated, hospitality on Airbnb is both gratifying and rewarding. Because with good service, hosts can increase their visibility and bookings.
Instructions: How to start an Airbnb business?
Here you will learn step by step how to become a host and rent through Airbnb:
- Register
Register as a host on the Airbnb website or through your Airbnb app. Creating your profile is free, and you'd only need to agree to Airbnb's Terms and Conditions. - Choose the type of accommodation.
Here you specify whether you're renting out a house, a vacation rental, or a single room. You can also set whether it's a standalone vacation rental or an unoccupied room in your own home.
The number you specify indicates the maximum number of guests who can stay there and the exact location of the apartment. You can also identify equipment, such as air conditioning or a TV, or shared areas, like a pool or garden, in this step. - Upload photos
For Airbnb listings, the photos are essential because they are the flagship of your ad. Take a look at your competitors' listings for inspiration. What do you find particularly successful? What should you avoid in your Airbnb ad? - Description of the apartment and surroundings
Be honest when writing the description and describe your accommodation as well as possible. The title and text should make guests want to book, but not create false expectations. Disappointed customers will leave negative reviews, which can harm your reputation as an Airbnb host. The style is casual and friendly. The "you" is standard in the Airbnb community. - House rules & requirements for guests
Besides the Airbnb guidelines (email address, phone number, and payment information), what information is required for guests to book your accommodation? Here you can set, for example, that they must accept your house rules before booking. In these house rules, you can specify whether the apartment is suitable for babies and small children, whether pets are allowed, whether smoking is prohibited, etc. - Booking preferences
Do you want your bookings to be synchronized in the calendar? Do you accept bookings on the day of arrival, or do you need at least one day's notice? When are check-in and check-out available? What is the minimum length of stay? Do you offer permanent rentals? - Airbnb tip: a discount for first guests
Now, Airbnb will advise you to offer a discount for the first three bookings. Take this advice, as it'll help you earn points with your first guests and receive good reviews more quickly. Especially the first reviews are crucial for your future ranking. Therefore, it is advisable to start with a low price and gradually increase it later. - Verify account
You do this by uploading a proof of identity. This is very important and will increase trust among your guests. - Publish your listing
That's it! Now you can publish your listing and soon receive your first bookings.
Booking request vs. instant booking
You decide if your guests need to make a booking request first or if they can book your accommodation immediately. With booking on request, you can choose your guests, but you have more work overall and always have to react quickly. Many guests make requests to several accommodations at the same time, but in the end, only one host receives the booking. For the others, it was all just unnecessary work.
Direct bookings, on the other hand, have several advantages: most guests prefer this option because it allows them to plan their trip more effectively. Many travelers, therefore, specifically filter for "instant booking" in the Airbnb portal. As an Airbnb owner, you also save time with this option because you don't have to check and process booking requests manually. You can automate many tasks and still achieve a higher occupancy rate for your vacation rental.
If your guests still have questions before booking, they can simply send you a message.
With instant booking, you also increase your chances of being awarded the "Superhost" designation. Statistically, accommodations that offer instant booking are 17% more likely to be booked and therefore rank higher on Airbnb results lists.
What is an Airbnb Superhost?
A "Superhost" is an experienced Airbnb host who consistently receives excellent reviews and serves as a role model for other hosts. Airbnb guests prefer to book accommodations with Superhosts because they can be confident of a positive experience.
How to become a Superhost on Airbnb?
- At least 10 stays or at least three long-term stays (with a total of 100 days): patience is required here, as this requirement is fulfilled over time. The more apartments you have, the faster it goes.
- Response rate above 90%: Short responses via the app are reasonably sufficient. The important thing here is not to wait too long.
- Cancellation rate below 1%: If you use a channel manager, your calendars and prices are always up to date. Therefore, as a renter, you should never have to make cancellations.
- Overall rating of 4.8 (in the past 365 days): Again, personal contact is the key to success. Guests tend to give better ratings if they have a good relationship with their host before and during their stay. Hence, building a good atmosphere and offering gifts, such as a Welcome Pack, can help you stand out among your competition. Also, don't go overboard with prices. This is because it also raises expectations of the accommodation and could result in poor reviews if the expectations are not met.
Sync Airbnb calendar with a Channel Manager
If you want to use Airbnb in addition to other booking platforms, a Channel Manager like Smoobu can save you a lot of work. You can connect various portals, such as Airbnb, Booking.com, VRBO, or smaller niche portals, and synchronize them automatically via your booking calendar.
You can also easily adjust your prices with the Channel Manager and manage your listings on Airbnb from a central platform. Simply enter your base price. The service fees of the different booking portals are automatically added and sent to the individual portals. This way, you have less work to do and you can still increase your sales.
The Channel Manager also helps you with instant bookings. Since the availability of your vacation rental is always up to date in the calendar, double bookings are prevented. Airbnb also offers the possibility to import iCal calendars. However, we recommend using a real Channel Manager with an API interface. These are more reliable and, most importantly, sync in real-time.
Learn how to connect your Airbnb account with Smoobu here.
Increase your revenues with Airbnb.
If you choose to manage your Airbnb by yourself, then everything goes about your personal touch. Consider what sets you and your vacation rental apart from the competition and establish your unique brand. To do this, you'll need a top description and high-quality photos, first and foremost.
Find the right nightly price.
Finding the correct rates is not an easy task. You need experience and time. Consider how to minimize your own time and costs while still providing your guests with the best possible service. That should be the lower end of the price range, and you should never go below that. The high end is based on demand and competition. We recommend always starting at the bottom and then gradually increasing the price.
The minimum stay and cleaning fees are at least as necessary for optimization. If you're unsure about this, consider using a dynamic pricing tool, which allows you to set prices that best suit both you and your guests.
Get positive Airbnb reviews.
Many guests prefer the option of instant booking because it enables them to plan more effectively and save time. When you offer this option, your accommodations appear higher in search results and are more likely to be booked. Thus, you optimize your ranking and stand out from the competition.
Surprise your guests upon arrival with a complimentary bottle of water or local specialties (wine, fruit, chocolate). Always be friendly and helpful, or respond quickly to questions. Even a fresh bouquet will do wonders.
Win regular guests
This is how you provide your guests with the best possible experience and get positive feedback in return. Satisfied guests may even become regulars and return regularly. Or, at the very least, they'll give you a good review and recommend you outside of Airbnb.
Be there for the guest. Offer them support and entertainment. You don't have to spend time with them. Even an honest recommendation for a good restaurant or leisure activities in the vicinity is very well received.
How much does Airbnb cost for hosts?
Signing up and listing is free, but Airbnb's business model is sustained by charging its customers a service fee per booking. The company uses this to fund its online platform and services, such as support. Most importantly, Airbnb uses it to find guests through its marketing.
There are two models for collecting this commission: either the host shares the fee with the guest or the host pays the entire cost.
- Variant 1: Separate service fee
In the first variant, most hosts pay 3% of the booking price. Airbnb hosts in Italy or with strict cancellation policies pay slightly more. Airbnb automatically retains this amount when paying out to the host. So it does not have to be paid extra.
The guest pays a maximum of 14.2% surcharge on the booking price. The exact amount is displayed on the portal before you make a payment. - Variant 2: The Host pays the entire service fee
In the second variant, the Airbnb host pays the entire fee. This option is mandatory for hotels or hosts that use software (such as a Channel Manager) to manage their accommodation. The cost is between 14% and 16%, and can be higher in some non-European countries or if cancellation conditions are strict. This so-called host-only fee is a more transparent and cheaper pricing model, and the guest prefers it.
Conclusion: Reasons why you should list your vacation rental on Airbnb
- Airbnb is a worthwhile option for renting out vacation homes and apartments as an additional booking platform, as it allows you to target a new audience. Airbnb users often book on short notice, which helps you avoid unnecessary vacancies of your accommodation.
- The rating system shows your potential guests that you are a serious host, owner, or landlord. You can also better assess whether guests are trustworthy and thus avoid problems.
- If you also offer your vacation rental on other platforms, such as Booking.com and VRBO, it is best to use a Channel Manager to avoid double bookings. Smoobu is ideally suited for this as an Airbnb Preferred Software Partner.