There is unexpected competition emerging in the vacation rental business.
We don’t want to tell you, Airbnb, but the call came from inside the house.
According to a report this month from bear cave and reported by Reuters.
Professional rental companies often designated as Superhosts — a term the company uses to denote the most productive rental owners — are phasing out Airbnb by letting tenants book room directly with them or through their own listing platform at a more affordable rate.
That might be bad news for Airbnb, but it’s great news for your wallet as you head into the summer break.
One of those companies, heirloom, which lists luxury vacation rentals on Airbnb but also allows guests to book rooms on its own website. According to the report, a two-night stay at one of Heirloom’s Nashville listings is $125 per night less than what you’d find on Airbnb.
That poses a new challenge for Airbnb, which has been plagued by complaints recently that cleaning fees, service fees and other fees skyrocketed that made the platform suddenly less attractive than its competitors. hotels.
Airbnb CEO Brian Chesky notes that the company is moving towards the practice prepaid price be more transparent about how much final guests will pay for a stay.
However, eliminating the company entirely by going directly to the host would make things more affordable for travelers. Direct listings Heirloom in Nashville charges half the service fee that comes with booking the same property through Airbnb.
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Workarounds are on the rise
This practice has always existed to some extent in the Airbnb world, with hosts sometimes working directly with tenants instead of requiring them to book rooms on the site and incur various service fees. .
It works both ways, as tenants pay less and hosts make more money by not paying Airbnb a fee. It seems that Airbnb has tried to prevent this activity with various security measures such as blurring phone numbers and emails when hosts and guests message each other on the platform.
While Airbnb hasn’t made it clear that hosts canceling reservations upon booking is a common practice and a financial burden for the company, the company’s most recent annual filing with the Securities and Exchange Commission and US Exchange note the following:
Some of our Hosts have chosen to cross-list their properties, which reduces their availability on our platform. When properties are cross-listed, the prices guests pay on our platform may or may not appear to be competitive for a number of reasons, including differences in fee structures and policies, which may cause guests to book through other services, which could have a material adverse effect on our business, results of operations and financial position. Some property managers contact our Hosts and guests to encourage them to list or book directly with them and bypass our platform, and certain Hosts may encourage encourages transactions outside of our platform, which reduces the use of our platform and services.
Airbnb did not respond to TPG’s request for comment. However, The Bear Cave’s report shows just how successful the workaround has become in the Superhost community — and the threat it poses if more Superhosts professionally manage the property. than follow the Heirloom step.
Professional property managers make up just 1% of all Airbnb and Vrbo hosts, according to AirDNA vacation rental data platform. However, they manage 23% of the available listings and generate 28% of the total revenue. That could make a big dent in Airbnb and Vrbo if travelers start to turn to more affordable listings for the same property offered on another site.
Reuters notes that Airbnb’s share price fell by as much as 6% after the report was published, which also outlined various guest complaints about staying at Airbnb rentals — from hidden cameras in rooms. shower came with an unexpected cleaning request and the host canceled the room at the last minute.
How to use this Airbnb game to your advantage
As with any major purchase, the message here is simple for travelers: Do your research.
TPG found the same four-bedroom home in Provincetown on Cape Cod in Massachusetts that had multiple nightly rates depending on platform for the same week in October. While vacasa listed at $899 a night, rented by owner had it at $904 per night. It costs $1,074 a night on Airbnbwhile Marriott’s Homes & Villas by Marriott Bonvoy platform has the highest rates at 1,249.23 USD per night.
Airbnb and Homes & Villas may not want to be truncated by a competing business on the same list, but travelers willing to do some of the necessary work before booking a vacation can often win their wallets. Surname.
As Smokey Robinson and the Miracles once sang, “You better shop around.”
