Friday, November 1, 2024
HomeTravelCould Airbnb’s new co-host marketplace challenge property management companies?

Could Airbnb’s new co-host marketplace challenge property management companies?


After first announcing the creation of a co-hosting
marketplace during the company’s Q2 earnings
call in August
, Airbnb today officially launched the service – enabling hosts
to hire other hosts to help them manage their listing and property. 

“We’ve found that over 40% of hosts said they would host
more than they do currently if they had help,” said Jay Carney, Airbnb’s global
head of policy and communications. 

“It’s a great way for us to increase supply, improve the hosting
experience overall for more hosts, lifting quality in general … and the co-host
brings all this expertise to it so you’re going to enhance the experience for
guests, so it’s a great flywheel for us.”

According to short-term
rental analytics company AirDNA
, hosts with just one unit are the fastest
growing type of listings on Airbnb, with nearly 15% year over year growth in inventory
as of August 2024.

Co-host vs. professional property manager

Airbnb’s
criteria for co-hosts
includes things such as an average guest rating of
4.8 over the past 12 months across all accounts and listings that the person
has on Airbnb, cancellation rates of less than 3% and a verified identity. 

Hosts enter their address to find approved co-hosts nearby
and then the two communicate directly to establish the scope of the partnership
and the fee for the services – none of which goes to Airbnb, Carney said.

Examples of tasks co-hosts can be asked to handle include
creating a listing on Airbnb, taking photos, cleaning, communicating with
guests and managing check-in and checkout. 

Airbnb said the marketplace is launching with 10,000
co-hosts in 10 countries – the United States, United Kingdom, Canada, Mexico,
France, Germany, Italy, Spain, Australia and Brazil – with plans to add more
countries in the future. 

When asked if professional property managers could become
co-hosts, Carney said the co-host must be an individual, but that person could
work for a property management company.

“The goal here is to have these incredibly high standards
and … large property management companies don’t often clear that bar,
individual hosts within them might, but the goal here is to deliver for
existing hosts or new hosts this quality partnership with a co-host,” he said,
noting that the average rating for large property management companies on
Airbnb is 4.62, below the threshold for the co-host marketplace. 

According to AirDNA data, as of August 2024, there were more
than 1.7 million short-term rental listings on Airbnb and Vrbo in the U.S. and
about 20% of these listings – just over 330,000 – are managed by property
managers. 

That leaves potentially hundreds of thousands – just in the
U.S. – of properties whose hosts may want some support, but may not see the
need – or want to pay the fees – to hire a full-service professional property
management company.

According to upcoming Phocuswright data, about one-quarter
of hosts with fewer than 10 properties have partial-management agreements with
property management companies, and this marketplace could serve that type of rental
owner, said Phocuswright manager of research and special projects Madeline List.

“This could threaten some property managers who are working
to offer partial service, but it isn’t going to take the place of full-service
offerings,” she said.

“But depending on who is able to join the network, you may
just have some property managers entering the network to offer partial services
as opposed to just recruiting homeowners through other marketing channels.”

In early September, Thibault Masson, head of product
marketing at PriceLabs,
wrote about the coming co-hosting marketplace on LinkedIn
and advised
property managers to pay attention because, “Local co-hosts can now easily
enter the market, potentially driving down property management fees…”

And Simon Lehmann, co-founder and CEO of rental consultancy AJL
Atelier, reacted
with an even stronger message
: “This is not simply a new service—it’s a
shift in power dynamics. … While this model offers convenience and cost savings
for property owners, it represents a serious challenge to traditional property
managers…. Many co-hosts offer similar services with less bureaucracy, fewer
fees, and often, a more tailored experience for both guests and property
owners. With Airbnb providing a marketplace to match these co-hosts directly
with property owners, the traditional management model is being undercut in
ways that may soon become impossible to ignore.”

Additional updates

Along with the co-host marketplace, Airbnb’s latest product
announcement also includes more than 50 updates for guests. Carney said Airbnb
now has more than eight million listings around the world, and updates such as redesigned
filters and suggested destinations are intended to make it easier and faster
for users to find properties that meet their needs. 

“The updates will glean insights from a guest’s past trips
or from their current search to help them search for a perfect listing in less
time,” he said.

When asked if Airbnb may add natural language search in the
future, Carney said Airbnb is “constantly upgrading the experience … and we’ll
continue to introduce new features… and we are not in the business of hyping AI
but we in the business of applying it where we think it makes the most sense to
enhance the experience… and that may at some point include natural language search
but certainly nothing to announce today.”

Airbnb at The Phocuswright Conference

Hear from Airbnb’s chief business officer Dave Stephenson at The Phocuswright Conference, November 19-21 in Phoenix.



Source link

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments

Translate »