Unless you’ve been living under a rock, I’m pretty sure you’ve heard about the wonders of Airbnb and how much it’s revolutionized the travel and real estate industries.
Since its launch in August of 2008, the company has accumulated over 3 million listings in almost 5,000 cities worldwide. The company has served over 60 million guests in their 9 years of operation. In fact, Airbnb is now so popular that it’s called as the largest ‘hotel’ chain in the world.
Airbnb has been a great avenue for real estate investors to rent out the homes they own for a night, a week or a month to people who are on vacation or business trips. Real estate investors in large cities and vacation areas have a lucrative alternative to renting out their houses or apartments for a year or more.
If you’ve had experience being an Airbnb host, you know there is some great income potential with it. So, whether you are a full-time host or a real estate investor looking for extra income, there is a tool that can help you step up your game and make the most out of your Airbnb investment.
What is AirDNA?
The idea was born when CEO and owner of RentingYourPlace.com, Scott Shatford, decided to travel to South East Asia after he lost his job in 2012. His neighbor suggested that while he was away, he should try renting out his Santa Monica apartment to Airbnb.
A few weeks in, Scott was earning a large amount of money from Airbnbing his apartment. Renting out his place produced great results and he wondered how to make the business even better…
But, Scott realized that renting out several properties at once is quite stressful. So he and his father, who also works in tech, started gathering data from Airbnb’s website, analyzed it, and made reports out of it...
The information they gathered can potentially boost profits for AirBnB investors. So, AirDNA was born.
AirDNA provides data and vacation rental analytics to entrepreneurs and investors. The company tracks the daily performance of 2 million listings in over 5,000 countries all over the world and gives you market reports and other data such as:
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Optimized pricing
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Seasonal demand and
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Average revenue generated by short-term rentals in an area (your competition)
Simply put, AirDNA gives investors valuable data about how other short-term rentals are doing in terms of the prices they charge and the profit they make in their vicinity.
Real estate investors can also use AirDNA to find out the best places to buy vacation homes to rent out. The service gives you information as to which area has the highest rents and demands.
This information was only available to corporate hotel chains, but thanks to AirDNA, this sought-after info can now be accessed by everyday homeowners and real estate investors. Like you.
Who’s it for?
AirDNA was originally built to help Airbnb hosts manage their properties, but as the company evolved, they are now driving their efforts to help people to make better real estate investments…
Here are some of the industries where Airbnb data is relevant:
Real Estate Investing
Investors are now keen on buying vacation homes in places where lodging supply is low, travel demand is high and regulation is favorable. Short-term rentals are now taking over the real estate industry and AirDNA can help you identify the best investment opportunities.
Realtors
AirDNA’s Market Intelligence Reports lets you get a glimpse of the earnings of similar properties to act as comps for selling vacation rentals.
Revenue Management
Pricing is one of the easiest ways to get more revenue from your short-term rentals. Since AirDNA real-time data feed analyzes travel demands worldwide on over 3 million Airbnb properties, you can create your own short-term pricing model through the use of the company’s data.
Academic Researchers
Researchers can study the long-term impact of the growth of private accommodations since hotels are starting to feel the impact of Airbnb’s popularity. They have been losing their pricing power during peak seasons to Airbnb’s wide array of vacation homes.
Travel Organizations
The usual guests of Airbnb are international travelers who often stay longer and spend more locally. This leads to a sizable revenue stream for developing countries and for international real estate investors.
Asset Managers
Hotels, OTAs, and lodging REITs are now figuring out how they can compete with Airbnb. The risks each of these companies face are different but it is mostly dependent on exposure and position in the value chain.
What Are the Features?
There are tons of features you can get from AirDNA. Here’s some of what they offer:
Market Summary Reports
Their detailed market summary reports give you an overview of the Airbnb’s rentals in major markets worldwide. You can use this to understand the growth of Airbnb as well as RevPAR, ADR (Average Daily Rental), occupancy and monthly supply and demand.
Revenue Management
AirDNA’s Pricing Copilot gives you real-time information on forwarding supply and demand on short-term rentals. This feature lets you in on the gauges, dashboards and tips to beat your competitors.
Market Intelligence Report
The company’s market intelligence reports contain in-depth analytics of any city, postal code or neighborhood. Airbnb hosts are able to access the performance of Airbnb listings in over 5,000 markets all over the world by giving you information on occupancy rates, annual revenue, seasonality and top-performing properties.
Property Performance Data
Their CSV reports give you over 40 data points for each property as well as the monthly performance metrics dating back to August of 2014. These include many of the other fees associated with an AirBnB rental that an investor can charge their customer (cleaning, deposits, etc.)
Investment Explorer
AirDNA just recently launched a web app called Investment Explorer. The app combines more than 100,000 rented properties on Airbnb with home value data so you can determine the locations that are the most profitable in terms of short-term rentals.
You can also see exact locations and the types of properties that are performing best in the market by viewing individual Airbnb listing revenues, occupancy and nightly rates on the map.
So…
We think that if this interests you – it’s definitely something worth looking into. You can even try out their free demo here.
Your Turn
Will you give this a try? Does it interest you? Tell us about it in the comments section below.
Jump on the bandwagon. Airbnb has been really popular since its launch. It helps people find cheap alternatives to hotels and gives homeowners and real estate investors the opportunity to earn extra cash. Give Airbnb a try if you haven’t yet. Rent out a property or two, coupled with data from AirDNA, and you should be good to go.
Reach out to AirDNA. AirDNA wants you to get nothing but the most trusted data out there. You can contact them to get customized data packages that specifically cater to your needs.
Stay legal. Lots of cities and towns have rules, regulations and laws that make it very difficult to run short-term rentals. Make sure you can stay compliant with any laws before you dive in.