We have all heard of Airbnb; the online community that started back in 2008. As you may be aware, Airbnb started out as a room rental service. If anyone had a spare room in their house, they could list it and make some extra money. Today, you can also find listings for vacation rental homes, apartment rentals, and hotel rooms.
Maybe you have a home or apartment that you are thinking about listing? You may ask yourself “What is the best marketplace for my rental?” or “is it worth the money for the possible risks and time involved?” Maybe your rental is right for Airbnb, as it can be suitable for the right property owners. However, there could be much better options you may have never heard of. We will let you be the judge and decide for yourself.
Issues Arising for the Average Host
The first question you may ask yourself is “how many rentals do I have, and what does competition look like within the marketplace?” The type of host making the most money for themselves and Airbnb, taking 40% of the revenue, is the ‘career host’, meaning they have more than one listing and rents each one out for the majority of the year. Then you have your ‘mega hosts’ who have three or more listings. These guys make up 25% of the revenue and make six figures a year, depending on the city. Career and mega hosts are now dominating the platform and the guest experience.
So what does this mean for the average recreational host? The impact is that, as a specific tourist market matures, the ability for a “normal” recreational host to make enough money on Airbnb to find it personally worth it to maintain that listing decreases. Will Airbnb ever put a stop to these mega operators? I assume not, as that is where the majority of their revenue streams from.
Added Risks Due to Demographics
Because Airbnb has been around for over 9 years and originally started out as a room rental platform, it has primarily served the young, budget-minded travelers. Perhaps the biggest risk is that your property could be damaged. There are stories of entire houses being trashed by young party-goers and claims of items being stolen from the properties. Airbnb tries to deflect those issues with their “Host Guarantee Program,” providing protection up to $1,000,000 in damages. Just do yourself a favor and read the fine print. It is only eligible in certain countries, doesn’t cover things such as missing cash, artwork, jewelry, etc. and in order to seek payment there are certain steps required to proceed.
Countless Fees for Hosts & their Guests
When it comes to your business, what is most important to you? I’d say profits and the guest experience is #1. So how much profit will you really make if listing your rental on Airbnb? They take a 3% service fee from the host for each reservation to cover the cost of processing the transaction. On top of service fees charged to hosts, Airbnb also takes an additional 6-12% from travelers, which is added to their rental reservation. Booking a home is now more costly for the guest and doesn’t help in the overall experience when they go to check out and their reservation is hundreds more. Then, once the traveler decides to pay for the reservation, Airbnb holds the hosts funds for 24 hours after the check-in! Talk about not being in control of your money, or your rental business.
The Bottom Line
Have you decided if Airbnb is right for you yet? With the domination of mega hosts, the higher risk involved on the platform due to demographics, and the outrageous service fees charged to both the host and their guest, is Airbnb a platform you would choose for your rental? Maybe you have multiple rentals and the location of your home is more suitable for a younger demographic? Airbnb could be just what you are looking for. These are just factors to think about that are important when deciding where to list.
On the other hand, if you do not believe Airbnb is right for you, what are you going to do about it? What are other, more suitable options? There are countless other platforms just like Airbnb, and all seem to be moving in the same direction- taking control of rental businesses and eating all your hard earned profits. It’s time for a solution; a better option for those property owners who may need another way.
Our Solution – Tripz.com
We are a family owned company founded by vacation rental owners that have been in business for more than 12 years. We became just as frustrated and fed up with the turn of the industry and that is why we founded Tripz in the first place. We feel as if all of these sites put their profits before their users’ wants and needs, and it’s unfair. We founded Tripz.com to not only fix all of the current issues within the marketplace, but to put owners back in control of their rental businesses.
Our goal is to revert the marketplace back to its original purpose; to bring hosts and guests together. We are simply an advertising platform to assist in bringing you reservations. We do not charge commissions to our hosts, or service fees to the guest. We have created a platform that is once again fair to all hosts, and their guests, providing the transparency, trust, and communication needed for a successful and enjoyable experience on both sides.
Join the Tripz Movement and become part of the change this industry so desperately needs – for property owners to run successful and profitable businesses once again, and to give back the enjoyable and affordable experience all travelers once expected and deserve.