Beating the #Airbnbust: 5 Tips for Improving Your Bookings

“My bookings are down.”

If you’re a vacation rental host, you’ve probably heard this line in recent months. Or maybe you’ve even said it yourself.

The sentiment was captured in this viral Oct. 16 tweet that popularized the term #Airbnbust, referring to a perceived decline in the popularity and feasibility of short-term rentals.

It’s more complicated than that, though.

On Nov. 1, Airbnb announced that Q3 2022 was its most profitable fiscal quarter ever. And AirDNA’s own data shows that both demand and revenue for short-term rentals are currently at historic highs.

So then why are so many hosts seeing year-over-year declines? And are those declines actually a sign of a long-term booking problem?

Don’t worry—we have the answers you’re looking for. As well as five practical steps you can take to bolster your rental business today, whether you’re feeling the bust or not.

1. Data over drama: Don’t overreact to economic uncertainty.

It’s no secret the global economy has been volatile since the onset of the COVID-19 pandemic. In the United States alone, mortgage rates dropped to a historic low in late 2020 (2.65%) and have since climbed to a 20-year high (7.08% as of Nov. 10, 2022).

You know the story: Initially, lockdowns and health concerns negatively impacted vacation rental demand. However, throughout 2021, travel restrictions relented and vaccines became widely available—all while mortgage rates remained below 4%. This reversed demand trends entirely. 

2021 became a banner year for the vacation rental industry, to say the very least. Many rentalpreneurs were earning record revenue, thanks to eager travelers who spent most of 2020 locked inside their homes.

As a result, many aspiring hosts were also motivated to join the rental game in 2021. And this trend of supply growth is still in full effect; there are 23% more active rental listings today than this time last year.

For these reasons, many hosts have experienced lower occupancy rates in 2022 versus 2021. Because 2021 was a true anomaly for the rental industry.

At AirDNA, we believe 2019 is a fairer benchmark for 2022 than 2021. And if you’re tracking behind 2021, that doesn’t mean you should panic about the future of your short-term rental business. Anxiety can lead hosts to make unnecessary changes to their rates, policies, and amenities—all of which may do more harm than good over the long run.

2. Re-evaluate your short-term rental rates.

• Airbnb recently changed the way its checkout prices are displayed, favoring the full cost of a trip versus a potentially misleading subtotal. (The new format is more akin to a hotel site.) However, this could mean your pricing may not be as competitive as you had hoped.
• Check out your competitors' rates to make sure you’re not leaving money on the table.
• Don’t ignore cleaning fees—which is another super divisive topic right now. A slight tweak in this department could make your listing much more attractive to an undecided shopper.

3. Can you offer more booking flexibility?

• Travelers are concerned about economic stability right now, which may mean they’re more hesitant to spend extra money. Can you offer a more flexible cancellation rate to offset these concerns?
• Alternatively, could you temporarily waive your cleaning fee to make your listing more appealing?

4. Promote your Airbnb wisely.

• Pay attention to variables like booking lead time (how far in advance are guests typically booking?) and booking trends (pacing), and use these findings to offer strategically timed promotions.
• Clearly labeled discounts can have a psychological effect on shoppers and make them believe they’re getting a deal—which they are. If you don’t want to adversely affect your bottom line, a small discount is still better than nothing in the minds of most travelers.

5. Appeal to the right guests for your property type and market.

• Now is an ideal time to revisit your amenities to make sure they’re attractive to potential guests. Are there any amenities popular for your area that are easy to add? Small updates can also go a long way, like allowing access to a washer and dryer that’s already in place or offering sports channels so guests don’t have to miss their favorite teams. Amenities that used to make you stand out (like a killer backyard) might now be common among your competition, so look for opportunities to freshen things up.
• Consider adding a mural or decorative wall space to make your listing more Instagrammable and memorable.
• Choose your listing titles wisely. In 2022, Airbnb briefly hid titles from search results, but they’re back now. Highlight appealing features or proximity to popular attractions to capture guest attention right away.
• The research here is clear: Your listing photos must make your property look amazing, no matters its size or style. Take pictures of features or amenities in your Airbnb that will make you stand out. Do you have new decor that needs to be captured? Are you using your most appealing photo as your cover photo? Try different images to see what guests are most drawn to.