The latest Airbnb updates introduce unique "Icons'' experiences, improved tools for both guests and hosts, and verified listings. These updates signal a strategic shift towards memorable, community-focused offerings.

2024 Airbnb Updates: The Lowdown on New Features and Star-Studded Icons

Airbnb's new "Icons" feature offers unique experiences with celebrities and iconic venues to attract new users and increase app engagement.

The platform introduced guest-focused tools for better planning and communication, including shared wishlists and group trip invitations.

Host updates include deeper earnings insights, an AI-enhanced messaging platform, and improved listing capabilities for easier property management.

Buckle up, STR hosts and investors! Airbnb just dropped their 2024 summer release, which includes a slew of exciting new features. Topping the list is Airbnb’s all-new “Icons,” which offer lucky guests a chance to take part in larger-than-life experiences.

The spring and summer announcement also included new tools for both guests and hosts that will help to improve communication, simplify group trips, provide valuable earnings insights, and more. 

Let’s dive into some of the most notable details of these new Airbnb updates.

The travel industry is abuzz with the news of Airbnb’s new Icons, which are unique properties where guests can book a stay or take part in an experience. 

On the table are remarkable experiences like:

Overnight stays in Paris’s Musée d’Orsay

A VIP tequila experience with comedian Kevin Hart

These listings serve to generate publicity and excitement about using Airbnb, showcasing some of the most extraordinary accommodations available on the platform. Space is extremely limited for Airbnb Icons, and those lucky enough to book one are issued a golden ticket. 

According to AirDNA VP of Marketing, Scott Sage, user acquisition is Airbnb’s goal with Icons.

“My assumption is that this is part of a broader and long-term strategic play. This is one lever [Airbnb] has for user acquisition,” Sage says. “This is a great play by them to get eyeballs, to get people into the app by requiring users to request to book icons in the app, and to get more people utilizing Airbnb.”

AirDNA Chief Economist, Jamie Lane, expands on how Icons can help with new user acquisition. 

“If you try to book [an Icon], you can’t do it unless you’re in the app. So Airbnb pushes people into the app. Then, secondarily, you’re prompted to…create an Airbnb account,” he says. “So how many people might download the app and create a profile for the first time because of this?”

Listen to the entire conversation on Airbnb updates with Scott and Jamie in episode 79 of STR Data Lab podcast.

AirDNA’s powerful yet easy-to-use tools make hosting and investing a breeze. This means having every insight you need, all in one place, always up-to-date.

Beyond the buzzworthy Airbnb Icons, the booking platform also released a handful of helpful new tools and features for guests as part of their Airbnb updates.

Shared wishlists: Invite others to vote, add notes, and edit trip details—together in the same wishlist.

Group trip invitations: Guests can send their travel partners trip details with digital postcards.

Redesigned messaging platform: Upgrades to the Messaging tool allows multiple guests to join a group chat with the host, and react to messages with emojis.

Airbnb’s new host features may not have the same fanfare as Icons, but they are worth celebrating for the ease they add to everyday short-term rental management.

Deeper earnings insights with interactive charts. Hosts can review their earnings by month or by year, filter earnings by listing, and get insights into past earnings and future projections. 

New reporting hub: Earnings reports publish automatically on both a monthly and annual basis. Reports are provided in a simple PDF format and include breakdowns by listing and payout method.

Redesigned Messaging platform: Finally, all your Host, guest, and support messages will appear in one place, making it easy to search through them.

AI Messaging tools: Save time and respond to your guests faster with AI-suggested quick replies.

New listing capabilities. Hosts can now enjoy an AI-powered photo tour wizard to incorporate new listing photos into existing tours, as well as an updated tool to showcase amenities on listings.

Released in March 2024, these updates may have flew under your radar:

Verified listings: Nearly 1.5 million listings across the US, Canada, Australia, UK, and France were verified and will receive ‘verified’ badges.

Top Homes highlight: Airbnb rolled out a new highlight to help the best of the best stand out as a complement to its recent “Guest Favorites” badge. The new highlight showcases eligible listings that are in the top 1%, 5%, or 10% ranking compared to others based on ratings, reviews, and reliability. Listings with at least five reviews in the past two years qualify for a highlight.

Changes to deter host cancellations: Over the course of the last several months, Airbnb has implemented some minor changes—like stricter host cancellation policies and new pricing tools—designed to prevent hosts from avoidable cancellations.  

Schlage smart lock integration: Hosts using Schlage smart locks as a key exchange solution can integrate them directly with Airbnb to automatically create unique entry codes for every reservation. Integrations with August and Yale smart locks are reportedly to come. 

Without a doubt, one of the most asked-about and requested features on Airbnb is a rewards program. In light of Expedia launching its One Key Rewards program—which includes Airbnb competitor, Vrbo—many are asking if Airbnb will follow suit.

Though Airbnb didn’t address the elephant in the room in its release notes, Airbnb CEO Brian Chesky did comment in a Skift.com article. 

According to Jamie Lane, it’s for a good reason.

“34% of Airbnb users are Super Users, booking four or more trips throughout the year. So Airbnb has a strong, loyal base already,” Lane explains. “If you create a loyalty program, you’re rewarding your best customers with discounts or free stays and you’re not getting much back for it. It would be a financial negative for them.”

Airbnb’s announcement of Icons signals a shift from focusing on rentals toward delivering memorable experiences.

“My takeaway from this release is, strategically, the direction Airbnb is trying to move is around broadening their verticals into new experiences, with an emphasis on community,” Sage says. “With these unique experiences, it emphasizes and amplifies the need for community and maybe even trying to build a community within their app.”

For more information about Airbnb's summer release and the latest updates, visit Airbnb's release page.

AirDNA’s vacation rental pricing tool uses data-driven recommendations to propose the best daily rates.

Discover the latest Airbnb updates, including unique "Icons" experiences, improved guest and host tools, and verified listings.

How to Identify the Best Type of Property for Airbnb

Key Takeaways
Entire homes are the most popular type of rental property because they offer higher rental prices and consistent occupancy rates, but unique stays like tiny homes and treehouses show rapid growth.
Property performance varies, with entire properties leading in listings. Occupancy rates and profitability are influenced by location, type of property, and guest demand.
Choosing the right property involves assessing location, understanding market trends, and considering guest preferences, with tools like MarketMinder and Rentalizer providing essential insights for informed investment decisions.

Many real estate investors are looking to get in on the thriving vacation rental market. Airbnb investments have emerged as a popular way for investors to diversify their portfolios. 

However, getting started with an Airbnb investment and identifying the best property can be a daunting task. With so many options–including private rooms, villas, treehouses, and yurts–the decision is not always clear-cut. 

You must align your vacation rental business objectives with the desires of prospective guests to select the best type of property for Airbnb. We have everything you need to know when making this important decision. 

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What are the Types of Properties on Airbnb?

Airbnb offers various property types that fit different guest preferences and investment strategies. 

Listing Property Types

Entire Home: Entire homes are popular for individuals, families, and groups seeking privacy and space. They often command higher rental prices and can offer a more consistent occupancy rate.

Private Room: These listings offer a room within a host's home. They're a great option for budget-conscious travelers and can provide a more personal, homey experience. Private rooms can attract a steady stream of Airbnb guests, especially in high-demand urban areas.

Shared Room: Shared rooms cater to the most budget-sensitive travelers. While not as lucrative as entire vacation homes or private rooms, they can be a good entry point for new hosts.

Real Estate Types

House: Houses can range from modest dwellings to luxury estates. They offer versatility in catering to guests' needs, from large group accommodations to cozy family retreats.

Apartment: Apartments, particularly in urban areas, appeal to many types of travelers, from business professionals to small families. They can offer the convenience of location and amenities.

Condo: Condos are common in urban settings. They often come with added benefits like security, maintenance, and access to shared facilities like gyms and pools.

Villa: Villas are often associated with luxury and exclusivity. They can generate higher monthly rental income, especially in sought-after vacation destinations.

Unique Stays: This growing category includes unconventional properties like tiny houses, yurts, glamping tents, treehouses, and container-style vacation homes. 

Aspiring Airbnb hosts should consider the appeal of different property types to different guest segments. What type of property you choose can significantly influence success based on location, target market, and investment goals.

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How Do Different Property Types Perform?

AirDNA data shows that the majority Airbnb listings are entire properties, which make up 83.9% of listings. Private rooms represent 15.7% of supply, appealing to those seeking a more budget-friendly and personal stay. Shared rooms are the least common at 0.4%.

Property performance also varies based on the number of bedrooms and how expensive it is to rent. The occupancy rate represents the percentage of time your property is rented out compared to the total available time. Listings with more rooms have lower occupancy rates (54%) compared to studio listings (60%). This holds true regardless of the price tier, i.e. how expensive the unit is relative to others in the same market with the same bedroom count. 

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Looking through the lens of pricing, data indicates that luxury properties have a lower average occupancy rate of 52% in comparison to budget properties. The least expensive rental properties are occupied 59% of the year because they are accessible to more people and they target guests that are budget conscious.

Market-Informed Pricing Decisions

AirDNA’s vacation rental pricing tool uses data-driven recommendations to propose the best daily rates.

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Unique Stays Are a Top Investment Property Type

It is important to note that the size of a market does not determine its profitability. Unique stays comprise only 3.4% of all listings, yet they are part of an expanding market.

Farm stays represent the largest subcategory within unique stays at 52k listings, followed by tiny homes (47k), camper/RV units (21k), and tents (13k). 

According to AirDNA research, the fastest growing unique stay Airbnb properties in 2023 were:

Riad*: +149.4%
Tower: +135.9%
Shipping container: +106.2%
Dome House: +47.2%
Barn: +40.0%
Cave: +38.4%

*A riad or riyad is a traditional Moroccan and Andalusi interior garden or courtyard associated with house and palace architecture.

For Airbnb investors and future Airbnb hosts, these statistics underscore the importance of aligning property offerings with guest demand.The smartest real estate investing decisions are data-driven and strategically sound to capitalize on the prevailing market trends.

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How to Choose the Best Investment Property

A key component of Airbnb investing is making informed decisions that align with your investment goals and market trends. 

Gross Rental Yield Insights

Gross rental yield is calculated by comparing the annual rental income to the property's purchase price. The gross rental yield is an important metric that helps real estate investors determine the potential returns of different rental properties in a given real estate market. 

Compared to the long-term rental market, the short-term rental sector often presents a higher yield potential. However, it's important to weigh other factors such as location, property type, management, maintenance costs against the gross rental yield. These factors can affect the overall profitability.

Customize Your Experience

Your pricing strategy should be as unique as your rental property.

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Location-Based Analysis

Property type and real estate type can impact occupancy rates. What type of Airbnb property performs best is often dependent on the location. Typically, we see higher occupancy levels in apartment/condo listings. This is especially true in coastal destinations, where they enjoy a 62.6% occupancy rate over houses and villas (58.3%). Interestingly, houses and villas enjoy a slightly higher occupancy rate than apartment/condo listings in small city and rural areas.

Location also affects your average daily rates (ADR), or the average rental income per paid occupied room in a given period. Narrowing the analysis to 3 bedroom listings, AirDNA data indicates that houses and villas enjoy a 5% higher ADR than apartment/condo listings in coastal destinations. 

On the flip side, apartment/condo listings net 20% higher ADRs than houses and villas in mountain or lake destinations.

Consider pros and cons of each short-term rental property’s location, such as proximity to tourist attractions, national parks, or business centers. Where their accommodations are in relation to where they want to go in the area and how easy it is to get around with or without public transportation can significantly impact guest bookings and satisfaction. 

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Additional Considerations When Choosing an Airbnb Rental

Selecting the perfect Airbnb rental goes beyond just the type and location of the property. Understanding the finer details can make or break your success in the Airbnb marketplace.

Review Short-term Rental Laws and Regulations

Before diving in, familiarize yourself with the local laws and regulations. Many cities have specific zoning laws, licensing requirements, and tax considerations for short-term rentals. Compliance is non-negotiable, and understanding these rules will prevent costly fines and ensure your rental operates legally.

Calculate Your Budget and Expenses

Calculate the initial investment and ongoing expenses. This includes the purchase price, any renovation costs, furnishings, and regular maintenance. Don’t forget to factor in the operational costs like cleaning fees, utilities, and Airbnb’s service fees. Ensure your budget aligns with your financial goals and the realistic income potential of the property.

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Analyze Properties for Sale

Do your homework on the properties available. Look for real estate that fits your budget and has the potential for high occupancy rates and good returns. Consider the specific attributes that make a property a viable Airbnb investment property, such as location, standout amenities, and local demand.

Work with a Real Estate Agent

A knowledgeable real estate agent can be invaluable for investors who are new to the Airbnb business. They can provide insights into the local real estate market, help navigate the purchase process, and find properties that meet your specific criteria.

Tools to Help You Find The Best Airbnb Rental Property

Short-term rental tools provide valuable insights into the performance of rental properties, streamlining your search for a profitable Airbnb property. These powerful data-backed tools are a must-have for any modern property investor. 

MarketMinder

Market Minder tracks the daily property performance data and rental analytics of 10 million short-term rentals in over 80,000+ markets around the world, displaying property-level data on an interactive map. With a fully filterable dashboard, vivid graphs, and sliders, the tool is designed to be accessible to hosts who are just starting out on Airbnb and powerful enough to support professional vacation rental managers. 

Airbnb Analytics Dashboard

For current hosts looking to optimize their listings, Airbnb offers an analytics dashboard. This feature tracks listing performance, offering insights into number of listing views, nightly rates, and guest demographics. Dashboard analytics helps hosts to make informed adjustments to improve their rental’s appeal. 

Rentalizer

Rentalizer™ uses data from over 10 million Airbnb and Vrbo listings to accurately predict earning potential for any property in the world. Enter any address and Rentalizer will provide a personalized projection that includes annual revenue, average daily rate, occupancy rate, seasonality's impact on profits, and a competitive analysis of neighboring competition.

Incorporating these tools and considerations into your strategy can lead to a smarter Airbnb investment property, potentially increasing your chances of success in the competitive world of short-term rentals.

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Whatever You Do, Decide with Data 

Choosing the best Airbnb property is really about matching what you want with what the short-term real estate market needs. With the right approach and tools, selecting the best Airbnb investment property can transform your real estate venture into a thriving and profitable business.

Tools like AirDNA help you pick a property that's not just a good real estate investment, but also right on the money with current trends and guest preferences. It's about making a smart move in a market that's always changing. So, when you're ready to take that step, let the facts lead the way.

Discover how to pick the perfect Airbnb property for investment success with expert tips and data-driven strategies.

2024 Airbnb Updates: The Lowdown on New Features and Star-Studded Icons

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