May 17, 2022

Episode 131: Is your Airbnb Getting Better or Worse? (Performance Insights)

General Real Estate

How to build an Airbnb Business: Is your Airbnb Getting Better or Worse? (Performance Insights)

Why is it that we can have two identical properties right next to each other but one waaay outperforms the other? Just a small change in occupancy or our average daily rate has a big impact on our bottom line so we need to ensure our short-term rentals are advertised in the best way possible.

Monitoring our properties against themselves or monitoring their performance, however, can be a bit confusing. There are so many changes we can make to our listings on Airbnb or wherever we have them listed but how do we know if they are actually going to make a difference? In short, we need to measure them. What doesn’t get measured can be managed, as the common saying goes.

So this week we’re going to talk about three ways you can measure the performance of your short-term rentals after making a change to see if they are performing better! And if you have more than one property already make sure to tune in to the bonus tip (#4) that might make things a bit easier for you 🙂

This week:

Listing performance insights
Conversion rates
Page views
An easily exportable report with data you need
Comparing one property to another

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Click Here to view Transcript

Welcome to short-term rental riches will discuss investing in real estate but with a specific focus on short-term rentals quick actionable items to acquire manage and scale in your portfolio I’m your host Tim Hubbard.

Welcome back to the short-term rental riches podcast you’ve heard it before they say that we can’t manage what we can’t measure right and so this week we’re gonna be talking about a couple metrics or couple places you can go to measure the performance of your listing more specifically with Airbnb and now last week we talked about some of the changes you can make to boost your listing to make sure that it shows up higher in Airbnb search results so if you haven’t watched it yet check it out this is sort of like the sequel to that one because oftentimes when we make these changes it’s kind of hard to know if they’re actually impacting our listing right well that’s what this week’s about we’re gonna talk about some of their babies insights to help us uncover whether or not these changes are actually effective or not so the first one and you can find it by going to your Airbnb listing going to insights you’ll see quite a few different parameters there but I want to talk first about average overall conversion rate this is made up of 3 components the first one is first page search impressions so how often is your listing showing up on the first page of a search result it’s really important right and it’s important to measure this if you see that it used to be showing up but now it’s not well maybe something changed right the next piece to this overall conversion rate is the search to listing conversion rates so after you’ve shown up and a potential gas has clicked on your listing they’re moving a little forward in the process right we’re going to convert them which means they’re going to make a reservation with your property and the third piece of this overall conversion rate. Is whether or not they actually both your property and so you can see all of these metrics online just go to Airbnb they also have a handy dandy little reports in an excel file that you can export by month if you want to run some of the numbers and stuff yourself what we’re actually gonna talk more over the coming months about metrics they’re really really important and I gotta say I’m a little guilty of not monitoring or measuring quite a few of the financial metrics of my properties in my portfolio why well it’s just been growing pretty well but I did a lot of properties and they’re all making money you know I I’ve always run the base metrics make sure things are profitable make sure that decision they make have a good R. Y. return on investment but there’s so many so many more little metrics that we can break down that really help us uncover what’s going on with our properties our average response time and what day the weeks the most the busiest and why and when we get the most questions and why I’m maybe one properties not holding up that well and it’s identical to a property right next door so I want M. continue to break down a few of these things are available for you on Airbnb have got 3 things actually and then I got a fourth one that is really helpful and it’s going to be for some of you out there that have maybe multiple properties already in the same area another easy way to measure your performance so that first piece is average overall conversion rate how many times you showing up on the first page how many people are clicking on your listing and how many are actually booking your listing now there’s a lot of reasons why you might show up on the first page of the search results right some of those we talked about last week but these metrics are gonna allow you to to measure that so if you do make a change make sure that you monitor the difference between month to month so number 2. Are your average page views going up or going down make sure to think about everything you cannot might actually be impacting that score outside of your reviews because reviews are the third thing that would really help us monitor performance of our properties see if it’s doing better it’s doing worse hopefully you’re getting lots of good reviews if you’re not then something is clearly wrong right for me and all of my properties if something happens twice if we get a review that mentions something twice most of time likely if there is a negative review our Gasser mentioning what they didn’t like in the private feedback if you see something that pops up in private feedback twice. It’s a change that you need to make with your property to make sure that you are monitoring your reviews and this brings me to the fourth way to measure our property in this isn’t unfortunately going to be available for everyone out there but it’s if you happen to have 2 properties that are pretty much identical maybe a duplex for example in the same area well you can easily make a change to one and not make the change to the other one and measure the difference between the performance of those 2 properties now everything else of course would have to be equal or basically equal so your pricing will need to be the same if one of those listings had great reviews and the other one wasn’t so well well then you wouldn’t really be able to measure this that easily but if you do have 2 properties are very somewhere in the same area it’s a really easy shortcuts built to measure changes something I’m doing with quite a few of our properties in our portfolio right now so real quick episode for you this week we just wanna make sure that we’re measuring the performance of our properties so we can uncover whiny they may be getting booked more why they may be getting booked last so we can do that by looking at our average conversion rate that’s on Airbnb is in science rumor that’s made up of 3 things the first piece is your gas how often do you show up on the first page how often are people actually clicking on your listing and how often are they converting over into a reservation so that’s the first piece second piece is just average page views how often is someone finding you over the course of a month maybe not on just the first page but you know going through searches so that will go up and down based on month but remember to account for season ability if you made a big price change or anything like that it’s very likely in a fact this page views the third piece is making sure we’re monitoring our reviews we all know how important that is but it’s good to measure that over the life of our properties well and. The fourth piece if you happen to have 2 properties are very similar and you want to know some of the changes and the changes we talked about last week to boost our search listing if you want to know some of those are actually helping well then we can keep compare these 2 similar properties to each other so I know. For some of us measuring and monitoring all this is in our favorite part but it’s very important and it doesn’t take a long time if you want you can just go in there being being you can download their monthly report which is going to give you most of that information by itself so it’s not going to take more in a few minutes good thing to be checking on I hope your properties are doing really well they’re staying booked Airbnb just hit 100000000 bookings can you believe that 0 bargains crazy we’re living in different times are we so hope you’re doing well I’m getting ready to head off to the airport here I’m going back to Colombia really excited to go back it’s been quite a while down here in Brazil it’s nice to have that flexibility Airbnb short term rentals of allow me to do that so I hope they are working well for you too and until next time a wonderful week and talk to sit. Want to get on the fast track to financial freedom for short term rentals what all searching the properties you choir you want to make sure that you acquired the right properties I want to give you my you doctor will show you how to do just that there is no charge to my gift to you for being one of our subscribers just go to restmethods.com that’s R E S T methods.com.