Airdna tells how Airbnb is changing vacation rentals forever - the sharing economy is getting everywhere and vacation rental managers

1. Vacation Rental Support
hello@airdna.co
+1 (424) 259-3290

2. The vacation rental market is experiencing lightening change through the rise
of peer-to-peer channels. The challenges and opportunities are manifold:
CHALLENGES
OPPORTUNITIES
Shaken Up VRs
Savvy VR managers are trumping the challenges with the opportunities!
Moves to transaction-based pricing mean
a higher proportion of income is being
surrendered with the new channels
Increased supply: as the process for
finding a rental becomes easier, more
homeowners are drawn to renting our their
homes. This could cause a glut in supply
Customer acquisition has been
democratized, allowing individual owners
the opportunity to self-manage
More potential customers are considering
vacation rentals through the new mediums
Year round occupancy now much more
achievable with new demographics using
traditional vacation rentals
Demand-based, dynamic pricing is now in
the hands of vacation rental managers in a
way it never was before.

3. Optimized Airbnb listings are making 44% more income than VR listings
that ignore Airbnb!
Monthly Income!
Airbnb Driving Higher VR Income
VR without Airbnb (baseline)
VR with Airbnb (19% higher than
baseline)
VR with optimized Airbnb (44%
higher than baseline)
MonthlyRevenue
Source: Selected AirDNA non-urban clients. 89 VRs. Non-optimized Airbnb listings from AirDNA database

4. 3 Sources of the Airbnb Edge
Demand!
Inventory!
Management!
Dynamic Pricing!
• Traffic is a significant multiple of all other VR websites combined
• Visitors compare with hotels, not just other VR channels
• Demographics that previously did not consider VRs, now exclusively use VRs, only
through this channel
• VR owners can now fill in their vacant periods as efficiently as a hotel chain through real
time calendar updating
• Consumers can rely on late bookings based on reviews and automation while VR
managers can quickly take bookings with minimum fuss
• Both combine to allow VR owners to rely on 90%+ occupancy if their listings are priced
effectively…
• VR owners can now adjust their pricing to exploit peaks and troughs in demand, versus
the ‘fire-and-forget’ pricing of traditional channels
• AirDNA data allows corporation-level profit maximization to VR owners
• The enablement of shorter lets at higher prices mean daily adjustments in pricing yield
large increases in income
Higher income with optimized Airbnb offsets higher transaction costs!

5. Anatomy of Optimization
The Edge Broken Down!
1
2
3
4
Airbnb’s marketing and interface allows a premium to
be charged over other channels. An optimized profile,
with a keyword-rich, inviting description and rapid,
effective communication allows higher prices to be
secured
Awareness of trends, supply, demand and comparative
pricing allow an optimized profile to realize when prices
can be raised. Other channels are not delivering the
volume of enquiries to maximize occupancy
Understanding the local market trends lets you
dictate a price that will save you from a void, even if
the price is lower than normal
Some nights the non-Airbnb profile may deliver
higher income per night, but this is easily off-set by
the rest of the month
Airbnb still delivers voids, but there are a lot fewer of
them
5
1
2
3
4
5
Revenuepernight
Days of the month
1
30
VR with optimized Airbnb
VR with Airbnb
VR without Airbnb

6. Optimization Has 4 Interdependent Pillars
Visibility
Descrip3on
Pricing
Interac3on
• 1st page of Google
attracts 94% more
clicks than 2nd page,
The same principle
works on Airbnb
listings
• Airbnb, uses an
algorithm to determine
placement based on:
§ Number of
bookings
§ Average reviews
§ Response times
§ Adherence to best
practice
§ Keyword-rich
direct traffic
§ Click-through rates
• A skilled VR manager
can exert great
influence on these
metrics
• Descriptions and
photos matter. Nothing
has changed with this
in the VR business.
• People look to Airbnb
for the personal touch
and this is true for the
descriptions. Warm
and friendly
descriptions are highly
valued
• An analysis of the
correlation between
description length and
occupancy rates
showed the optimum
listings have between
500 and 800 words. Of
course quantity does
not equate to quality
• Pricing effectively
makes all the
difference
• Knowing the
competition and
ensuring policies
(cleaning fee etc.) and
prices are in line
makes a huge
difference to
occupancy and
revenue
• Further, dynamically
pricing to respond to
competitors
movements and
rapidly changing
demand and supply
allows true
optimization
• Inexperienced hosts
see the booking
process as a
mechanical interaction,
but this is the most
crucial part of the
sales funnel
• Higher prices and
higher occupancy
follow from
§ 24/7 responses
within the hour
§ A willingness to do
deals
§ Warm, friendly
communications
§ Creating urgency

7. What AirDNA Can Do: Local Reports
AirDNA’s city reports give an essential snapshot of your area to
analyze your performance. City reports allow you to:
• Assess how your VR is performing against the competition
• Check your policies compare against the local market
• Identify exact seasonal demand
• Compare length of stay discounts
• Compare at city or zip code level
• See comparative occupancy
Option 1: Standardized Reports
• Instantly downloadable reports at city and/or zip code level
• Allow instant improvement of listings by assessing best practice in the area
• Available on AirDNA website
Option 2: Custom Reports
• AirDNA have been scrubbing and cleaning Airbnb data for well over a year
and can cut this in anyway you request, or provide the raw data for you to
analyze [we’ve had
• Pricing and options available on request at hello@airdna.co

8. What AirDNA Can Do: Consulting
AirDNA’s has built substantial expertise across
all 4 pillars of Airbnb optimization
• Achieving prominence
• Persuasive descriptions
• Price-setting
• Response management
AirDNA offers tailored consulting services to
your individual needs that cause a step change
in VR income. Our experience will ensure that
no stone is left unturned in the pursuit of
maximum revenue for your VR
For a full explanation of available services and
pricing, go to www.airdna.co/consulting
Alternatively, contact us today on
hello@airdna.co to explore options relevant to
your particular goals
An
AirDNA
Case
Sarah managed 22 properties in Austin, TX and
wanted to improve her listings on Airbnb to get
superior results.
AirDNA did a full on-site assessment, refining
her descriptions, standardizing her policies and
setting her guidelines for pricing to maximize
the potential of her properties.
Since the engagement, Sarah has seen a 22%
improvement in monthly revenue as a direct
result of AirDNA’s intervention

9. What AirDNA Can Do: Subscriptions
AirDNA’s premium data product gives weekly tailored reports on
competitive pricing in your designated areas, giving forward looking
data as well as backward looking information
Only with this information can true profit maximization occur as you
receive:
• Occupancy ratios, average daily rates, how far in advance nights
have been booked and pricing, all for individual upcoming calendar
days
• Detailed tracking over time that reveals demand and allows for
optimal pricing. As occupancy is squeezed, price increases can be
made. If supply rises, lower prices ensure occupancy
• Updated data that reflects the rapidly shifting VR landscape. The
rapid rise of Airbnb will continue to make data from months ago
become obsolete
This product is currently in beta-testing and takes the form of weekly
reports with updated and trending information. This offering is being
upgraded to a real time log-in system. Beta-testers will be able to
transition to this product while retaining their early-bird pricing
Contact hello@airdna.co to be given access to AirDNA’s cutting-edge
product
• Weekly updates
• Hotel-level pricing
sophistication
• Free upgrade to
forthcoming real
time access-
controlled
database

10. What AirDNA Can Do: Sales Management
AirDNA Sales Management places all responsibility for revenue management with the leading
experts in this space, AirDNA
AirDNA will take care of all parts of your sales funnel through Airbnb, from placement
optimization to booking arrangements. This product includes:
• Full optimization of property description and policies tailored to your local area
• Dynamic pricing updates using AirDNA’s proprietary pricing mechanisms built off over a year
of Airbnb pricing analysis, including adjustments for peaks and troughs in demand and local
peak-demand events
• 24/7 rapid response to customer enquiries
• AirDNA’s rapid closing of enquires by a dedicated bookings team
• Able to incorporate other VR platforms (VRBO, HomeAway etc.)
A full blue-riband service leaving you to merely make the VRs beautiful and check the guests in
and out
Such is our confidence in our methods, we back our product with an exclusive guarantee:
If AirDNA does not increase your revenue by more than our fee, we’ll give
a full refund!