Competing on Airbnb

As the collaborative economy grows, sites like Airbnb, VRBO, or Homeaway attract more and more hosts and guests. Therefore, competing on Airbnb or other platforms is becoming increasingly demanding.

The sharing economy is a market with few barriers to entry for new players – and thus, with an increasingly high level of competition. This fact has been attenuated by the brutal increases in demand that vacation rental platforms have experienced.

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Keys to competing on Airbnb

As we said, expanding demand has softened the arrival of new competitors. But you must not forget that the reduced barriers to entry brutally affect the sector. When simply entering this market meant opening the doors of your house – and being the only host – attracting new customers was not a complicated task. The occupancy rate might not have been 100%. However, you weren't battling with your competition on Airbnb.

So, how can you compete on Airbnb?

Some of the best hosts will grow their business and capture more market; others, however, will succumb to the competition and be left with their tourist apartments empty. Below we bring you some keys to discover what are the keys to consistently filling your tourist apartments.

Competing on Airbnb is about offering experiences to your guests

Guests in tourist accommodations want to feel comfortable and stress-free. Unlike the typical hotel guest, Airbnb guests also want to feel that their hosts treat them like friends – or at least acquaintances. To compete on Airbnb, remember that your guests want to feel at home... This level of treatment is unachievable by a hotel. Hosts who recreate this atmosphere of closeness are the ones who receive the best ratings. It is key to shine in the listing of your tourist apartment.

If you are a reader of this blog, you have probably already learned some useful tips to make your guests feel at home. Below are some extra tips to stand out from the competition for your tourist accommodation.

As in any other business, competing will cost you money. However, you should evaluate the return on that investment (ROI): will the final result allow you to increase the nightly rate you charge your guests? Will it increase the profits of your tourist accommodation?

Inform your guests

Firstly, you should create a personalised guide to the house and the neighbourhood. This document is key to competing on Airbnb. Upon arrival, typical customer questions usually fall into three categories:

• WiFi password
• House rules
• Information about the area:
• Nearest metro, train station, or bus stop
• Supermarkets
• and... your personal recommendations of places to visit!

A good welcome book allows your guests to resolve all these doubts without you needing to contact them personally.

Below, you have a comparison table showing the pros and cons of the different forms such a guest guide can take. Choose the one that best suits your tourist accommodation's target guest. This understanding of the ideal guest and the positioning of the accommodation is critical for competing on Airbnb.

TypeAdvantageDisadvantageAirbnb's House Rules> Already in your Airbnb listing> Guests don't read themPrinted accommodation manual> Cheap
> Easy to find
> Time to consolidate
> Difficult to update remotely
> Complicated to use if not well formattedSend guests a PDF> Easy to send
> Easy to update> Not available on all devices
> No traceability of what your guests readDigital welcome book> Easy to navigate
> Easy to update remotely> Depends on internet connection
> Guests need to remember how to access

Show appreciation

If you want to take the act of appreciation to the maximum, it is advisable to write a personalised thank-you card with the guest's name. Yes, buying cards at the supermarket or stationery store and always using the same one also works. However, personalisation is a technique for competing on Airbnb that will allow you to differentiate yourself from the rest and stand out.

Moreover, if your guests receive this personalised card before leaving, they will leave your accommodation with a good impression... which will help you get a great review.

Go beyond

The last tip for competing on Airbnb is to go beyond basic amenities. By the way, if you are starting and are not sure what to include, check out our post on decorating tourist apartments.

It is true that some guests bring their own towels. However, limitations on carrying liquids at airports or increasingly strict baggage conditions (have you travelled with Ryanair? hehehe) make it advisable to include these types of elements in your tourist accommodation to compete on Airbnb.

Conclusion: Competition on Airbnb

As Airbnb, the vacation rental sector, and the collaborative economy in general, continue to grow, the market is shifting from an incipient – and expanding – phase to one of consolidation. With this, competition intensifies.

As more and more guests start using these platforms – most coming from hotels – the level of demand for hosts increases. Those who do not offer equivalent experiences will be losing part of this new wave of customers.

However, you should not depersonalise the Airbnb experience. Your guests expect more personal treatment – something no hotel can offer them – and, at the same time, an equivalent level of service quality.

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