Let's talk about the elephant in the room . . .
I get this question all. the. time. when I tell people I'm transitioning to mostly Airbnb Design:
'But isn't Airbnb dying?!'
In fact I can see the question bubbling up in their mind just demanding to be asked the moment I reveal my intentions.
They furrow their brow. They look down pensively. And they wait for me to finish my sentence so they can ask it.
Then inevitably, they do.
And even once in awhile when they don't, I know it's on their mind. I can see it lurking in their eyes behind a veil of well-intentioned skepticism. 😅
So let's talk about it.
But I'll warn you, my inner history nerd will likely come out at some point. 🤓
The Background
Ok, we're all hearing that the Airbnb industry is a bubble that's already starting to burst. So if that's true, then why in the world would anybody launch their Airbnb Design career now of all times?!?
Well, I'll tell you.
When Airbnb came on the scene, everybody and their mother jumped on board and bought a cheap little property, slapped some beds in it, and listed it on Airbnb for big money. Profits were high, standards were low, and practically anybody with four walls and a roof was making hand-over-fist money.
More and more hosts got on board, and the novelty of having the amenities and charm of a unique space kept guests wowed for quite some time. I mean, it's absolutely awesome to have a kitchen when you're traveling, and a place you can let your hair down in total privacy. Guests especially loved the family-friendly aspect of it!
Themed and high-end Airbnbs began to appear, and the standards began to climb.
...But then the excitement began to wear off.
Covid happened, and while many travelers still preferred private Airbnbs and VRBO rentals to crowded, germy hotels, occupancy was down.
People were traveling less.
Add the fact that every host was expected to pay for intense cleaning after each guest, and profits were suddenly way down.
The solution? Pass the expense on to the guest! And so cleaning fees skyrocketed.
Back when you could stay in an Airbnb cheaper or the same as a hotel, it felt like a steal.
But hotel prices plummeted, and they began to entice guests back. Because if you have to pay more for your stay but you don't get housekeeping, concierge service, or fancy amenities like a pool, hot tub, or continental breakfast, some of the sheen wears off.
All the hosts who had been rocking and rolling with little to no effort before suddenly were barely breaking even, and they loudly raised the cry that 'Airbnb was dying.'
But was it?
Here's where the truth and the rumor diverge, and the part that those hosts who made it through the rain understand upside down and inside out:
Airbnb isn't dying - BAD Airbnbs are dying.
It isn't that suddenly Airbnb is a bad business model, that guests realized they hate the concept, or that hotels figured out a way to crush them...
Guests just got wise.
See, Airbnb is an amazing, timeless concept.
In fact, it's downright historic!
For millennia, western travelers have been staying at small inns hosted by locals.
Long ago, bordellos, spas, and bathhouses began to offer sleeping facilities. Monasteries and Abbeys traditionally offered accommodation for weary travelers, safe from the elements during the Middle Ages. And in fact, as far back as the Ancient Greeks, savvy people have been making money by offering a safe, warm place to stay and dine.
(The oldest hotel in the world is said to be in Japan, founded in 705, but for our purposes we'll stick with the western world.)
But modern hotels as we know them today didn't appear on the scene until the industrial revolution cultivated new levels of prosperity. Traveling was no longer reserved for only the upper crust of society. Transportation boomed, railroads connected far-away places, and workers' holidays inspired people from all strata of society to ramble far afield.
Automobiles, then air travel expanded opportunities for more and more families and solo travelers to explore the world around them.
By the second half of the 20th century, the hotel industry was absolutely booming.
But the modern hotel that was born out of that time - the high-rise type that imitated the Ritz Carlton and its peers, that provided a glamorous setting, a concierge, mints on the pillows, and countless amenities (in short the type we're familiar with today) - is the exception to the rule.
We love to think that The Way Things Are today is the standard. The typical. The way it has always been.
But that simply isn't true.
We live in an incredibly prosperous era of history (the current economy and cost of groceries notwithstanding) 😅 and what we consider to be normal is in fact, a modern miracle.
In the grand scheme of human history, the small, homey, rustic building with a friendly (or sometimes not-so-friendly) personal hosting style - the classic Inn you read about in fantasy novels and history books - has been the norm.
From that perspective, hotels are the blip, not Airbnbs.
After all, we're a social species, and the de-personalization of the hotel industry is an anomaly unto itself.
And current trends reveal that humans are pretty dang tired of the corporate sterility of modern life.
We're longing for real human connection. (Renting from one human whose face you know and whose cell number you have is much more personal than staying at a corporate high-rise owned by some faceless mogul who doesn't know you exist.)
We're starved for meaningful time with loved ones. (Renting an entire home provides more opportunities for quality time together like cooking, sitting by a fire, hanging out in the shared spaces, and focusing our attention on one another instead of being surrounded by strangers and filed into our separate rooms, meeting only in the lobby for breakfast surrounded by dozens of strangers.)
More space & privacy means more private dance parties.
All that to say, Airbnb as a brand may not be around forever, but Bed & Breakfasts, small Inns, rented rooms, and savvy hosts who adapt to their guests' needs are here to stay.
But the question is - are Airbnbs still a good investment?
The answer is that it depends heavily on your market, your budget, your concept, and your intentions.
Here are some of the factors that go into a profitable Airbnb:
- Location, Location, Location. If you're in a touristy area, an area underserved by hotels, a region known for its hospitals, or any other place that people regularly travel to, then you can likely find a way to succeed. So many locals scoff at the idea of investing in a Northeast Ohio rental, but the region is famous for its hospitals, and has a dearth of good, affordable hotels. Our out-of-town investors understand that the low cost of real estate can equal huge, reliable returns. Our hosts find great success here!
- Guest Experience Matters! Gone are the days of tossing a half-assed rental onto Airbnb and raking in the dough. Successful hosts know that cultivating a unique experience that highlights local attractions & culture, provides interesting and desirable amenities, and thoughtful touches that go above and beyond the hotels is key to getting a booked-out calendar and raving reviews. The bare minimum is no longer enough when there are cheaper hotels on every corner.
- Design Is King. Boring, gray rentals stocked with Ikea specials and thrift-store art aren't cutting it anymore. Intentional, thoughtful design - especially warm & welcoming style - is the aspect that most helps Airbnbs run circles around hotels. From themed stays to incredibly unique touches, Superhosts know that investing in incredible design is the single best way to wow their guests, stop the scroll, and get more bookings.
- Personal Touches Guests no longer want to rent from a corporation - they want to know their hosts and feel connected to and spoiled by them. If you're not answering inquiries promptly, making yourself available when needed, offering personal touches inspired by your love of the area, or providing memorable moments, then why should guests choose your property over any other? Incorporating your personality and values into your guests' stay will have them coming back year after year. And if you can make them feel like family, then you'll be absolutely golden.
- Storytelling What makes your property stand out above the cold, detached nature of hotels? Your story. It could be a story about the local flavor, the culture of the area, the house itself, you and your family, the history of the home, or anything else you can dream up. Storytelling is accomplished through epic and thoughtful design, intentional planning, and the incorporation of real human experiences into your rental. If you don't have a clear, well-told story, then your rental will likely get shuffled to the bottom of the pile.
Hosts who have mastered these 5 things are still reporting large profit-margins, full calendars, and raving guests.
So the moral of the story is this:
Airbnb isn't dying, it's just getting started.
Guests just have higher standards than they have in the past. 💁♀️
But if you can cater to those desires, weave a unique experience, and create spaces where humans can relax and be themselves with the people they love the most in the world, then you will be on the right side of Airbnb history - and your bank account will be a thing of beauty.
Much Love,
Amy 😊
P.S............
ARE YOU THINKING ABOUT INVESTING?
While I've primarily worked in the Northeast Ohio area thus far, I'm so excited to announce that I'll soon be offering Virtual Airbnb Design for all 50 states!
What that will look like:
- Thoughtful, collaborative, design development that tells the story of your space & stops the scroll
- An expertly curated list of items for you to purchase to achieve that design, complete with links
- Floor plans, sketches, and detailed instructions for installation that leave no questions about how to achieve success
I'm realllllly excited about offering this new service! While I absolutely love NEO, I'm thrilled to help hosts refine their rentals, create gorgeous new properties, and dream up spaces for guests to enjoy for years to come all across the US.
Reach out to start a conversation if you're interested in working with me:
