In the competitive world of Airbnb, standing out is hard. With new listings popping up every day, offering “just another place to stay” won’t cut it anymore. To make your property the top choice for guests, know your competition. Then, outshine them. Today, I’ll talk about what I do to analyze my competition. I do it strategically, using data, creativity, and a little finesse to dominate the market.
Why Competitor Research Isn’t a “One and Done” Task
Most hosts start their journey by researching the competition. They check pricing, amenities, and reviews. They may use the data to estimate their potential earnings. But here’s the problem: most hosts stop there. They never revisit their competitors, even as the market evolves. And trust me, the market is always evolving.
Remember Blockbuster? They ruled the video rental industry. Then, they ignored the changing market. Enter Netflix, and the rest is history. If you don’t analyze your competition and adapt, your listing will become the Blockbuster of Airbnb.
Are You Competing Against the Right Listings?
It’s easy to assume your competition is narrowed down to other properties in your immediate area. But competition isn’t about proximity by mile; it’s about the search a guest performs. Guests compare properties based on what they entered into the search box of Airbnb. For example, you can enter Big Bear City or you can enter Big Bear Lake into Airbnb’s search engine. When you do, either search will come up with properties from both areas. Your guest will compare features and amenities from that list. Then they pick the listing that fits the trip they’re planning the best.
Take my experience in Big Bear, for example. It’s a highly competitive market flooded with properties, many from big investors. To stay ahead, I constantly analyze my competitors. Not just the ones down the street, but others across the entire valley.
Think of it like racing in Formula 1. If you’re a newcomer going up against seasoned drivers, you can’t rely on speed alone. You need strategy, precision, and a deep understanding of the competition. That’s what keeps me ahead.
What Can You Learn from Your Competitors?
Your competitors are a goldmine of insights if you know where to look. Here’s what I focus on:
- Guest Experience: Reviews will tell you exactly where your competitors are doing well and where they’re falling short. If their guests rave about cleanliness or communication, it’s time to level up your game. On the flip side, if they’re missing the mark on responsiveness or amenities, that’s your chance to shine.
- Unique Features: Identify what sets your competitors apart. One host near me offered an “old-west ghost town experience”. Your location may not have the exact same kinds of attractions, but focus on what makes your property unique.
- Location and Amenities: It’s not just about being close to the action. The “little things” can make a big impact, too. For example, another nearby property has an arcade like me. However, their arcade is located in a garage that is detached from the home. My arcade is indoors. So there’s no need to travel through the snow in the winter. The result? I make sure that I mention that in my listing as a selling point.
I analyze all these elements. It helps me make better, data-driven decisions. Ultimately it helps my listing stand out.
Leverage Tools Like AirDNA
It’s vital to check your competitors’ listings. Also, use tools like AirDNA to explore broader market trends. This tool provides insights on occupancy rates, revenue per room, and other key metrics.
For instance, I recently checked out the Big Bear market using AirDNA. This tool showed me the top listings with the highest revenue. It showed me what my competitors were doing and where I could improve. I was actually ranked number 23 for revenue out of over 10,000 listings (not so humble brag). That made me feel really good about the strategies and, tactics that I use and teach.
Here’s a key insight: Larger properties may have a higher daily rate. But, it’s about balancing occupancy and pricing. For example, my 2,300-square-foot home outperformed several much larger properties. They charged premium rates. I ran at lower prices with a higher occupancy and earned more revenue overall than they did.
These insights let me adjust my pricing and marketing. I’m competitive, even against the bigger properties.
Learn from Competitor Reviews
One of the most valuable pieces of information you can gather is from guest reviews. What are guests saying about your competition, and how can you use that to your advantage? I used reviews from a competitor’s property. I ran them through a custom tool I developed. It let me find their strengths and the areas they needed to improve.
Guest reviews are one of the most overlooked resources. They are of key importance when it comes to understanding the competition. They reveal exactly what guests love, and what drives them crazy. I use reviews to improve my listings. I address gaps my competitors aren’t filling.
I saw that one competitor’s guests kept mentioning a lack of pet-friendly amenities. I took that feedback to heart. I’m changing my listing to feature a dog crate, bowls, and pet-friendly outdoor spaces. My photos will highlight them. I’m sure that change will attract new guests my competitors will lose.
How to Position Yourself as the Better Choice
Once you’ve gathered insights, it’s time to take action. Here’s how you can position your property as the standout option:
Highlight Your Strengths: Showcase your property’s best features. Take steps to address any weaknesses you might have compared with your competition. Most importantly, be sure to point out why your property is the better choice. Whether it’s ski lifts nearby or a private game room, tell a story in your photos and descriptions that guests can’t resist.
Value Over Price: Don’t fall into the trap of racing to the bottom on pricing. Instead, provide exceptional value. Guests will pay more for a better experience.
Promote What Makes You Unique: Are you family-friendly? Pet-friendly? Do you provide local guides or personalized touches? Make those features front and center in your listing.
Stay One Step Ahead
The key to long-term success in Airbnb hosting is evolution. Your competitors are constantly adapting, and you need to do the same. Check market trends and your competition. Be ready to adjust your strategy.
The Airbnb market is competitive, but with the right strategies, you can thrive. Analyze your competitors. Use tools like AirDNA. Make guest-focused improvements. This will position your property as the top choice.
So, start digging into those listings. Note what works and what doesn’t. Then, make changes to stay ahead of the game. Success isn’t just about being in the market, it’s about owning it.
