Big Airbnb Hosts are Going Bankrupt

[@warrencrescenzo9569]

Thanks! Great to know. Happy we stayed small, own the properties and do it all ourselves.

[@carlover4239]

I don’t think people want to rent generic, corporate, boring, soulless condo Airbnbs. People want authentic local rentals.

[@daydreamyn5943]

Thats weird. I feel most people still just want a nice bed, nice decor, amenities, space and comfort. The overwhelming majority of people traveling are just in town for a few days and will only spend 6-10 hours in the unit per day.

[@joshualambert8346]

Yea, my most "unique", well designed units rent the worst.

[@carlover4239]

@@daydreamyn5943 How is that weird? When I travel in an airbnb if I wanted boring, generic, stocked from Amazon, I’d get a hotel.

[@carlover4239]

@@joshualambert8346 I’d be down to see what your unique rentals look like. Any links or info?

[@daydreamyn5943]

@@carlover4239 but then you dont have a full kitchen, no cooking wear, only 1 bedroom, mostly no balcony, old school cable tv and the same exact floor plan over and over. At least with a basic airbnb there is some verity of layout, furniture, rooms, kitchen and decorations. Even the most basic airbnb are more personal than a hotel.

[@allejess]

I needed to be reminded of this again. Thank you for making this video and helping me to think about my properties more creatively. Like you say, gotta give those guests the magic.

[@wantmoreinlife]

Super interesting. Sounds like these places tried to compete with the customer persona that books Hotels and just couldn't at scale. To be successful need to focus on the experience you provide guest and unique nature of their stay they can't get out of a hotel

[@MaryTokita]

Exactly! I offer homebaked muffins and an opportunity to sit in a creek, watch deer or kayak on a lake while enjoying AC and a 55-inch TV. Plus i am their concierge about local events, hot springs and whitewater rafting.

[@eddiemalvin]

I agree. So many businesses fail when they attempt to scale. It's especially difficult when they also have investors to appease. Smaller investors can easily compete against the bigger players by providing unique experiences and first-class service but they also have the distinct advantage of very low overhead and no partners or shareholders demanding a cut.

[@applepine1048]

actually it's sad if companies go bankrupt, not nice. i nearly got bankrupt too with airbnb until i found out to mix different sites and offline-renting.

[@waynehartlerode8936]

Cool analysis. Dont swim against the current, especially if we are maybe going into more recessionary times.

[@laurihines300]

When you buy a car and suddenly you see all of those cars everywhere you go. We bought a house in Italy and Matera is everywhere. I see so many posts on it. Totally agree. Can’t wait to go visit Matera.

[@charlescharlotte9960]

Great Video ! How about diseconomies of scale with low density portfolio ? A hotel can have all the rooms in one place keeping costs per unit lower. I believe hotels have higher margin per bed than a host with the same number of bed. This hypothesis is kind of depressing as it would mean hotels would win a price war.

[@matthewrouge]

Your videos are very good and informative. One question that remains, however, is whether the *entire* Airbnb market went down, not only for these soulless, inflexible corporations (if indeed they were really that, as described in this video), but also for the smart players. Did the smart players find their margins going down as well? Did you? Because sometimes even entire markets are destroyed, and even the best, smartest players suffer as well.

[@AirbnbAutomated]

Yes. When margins go down, they tend to hit the entire market. So i felt it. But, even if airbnb tries to be fair, better listings win, so its uneven

[@BellaVlogsLife]

Hey Where can I find some information on your advanced training or memberships please?

[@AirbnbAutomated]

Right here: Rakidzich.com/superhost

[@babubalu12]

Companies that have 100 many keys invariably have uncontrollable/unmanageable overheads and are greedy of profits. Airbnb must not all these huge AIRBNB Co pained to list on Airbnb as it comes with the cost of simple but original/ fundamental but core idea of airbnb - Air mattress bread and breakfast for easy & simple short term stay concept. what do you guys think.

[@paule3321]

Great podcast, interesting...thanks.

[@dazhill50]

Well here’s the things. Airbnb needs to focus more on “speed of booking” that’s part of what makes this so accessible and convenient. Even at hotels where I know I can book online I still book through Airbnb at the same location. The second part why I rather book through Airbnb is because Airbnb is primarily a customer service company. So I know if I have a real concern Airbnb will fix it for me and protect me from the hotel. The problem with the hotel is that they think just because they use Airbnb that their sales will increase. They’re not looking at the true value of the platform. Those companies are going under because they are in short just a taxi cab using the Uber app. They don’t see the overall vision of Uber in itself. They’re trying to intertwine two close but very different worlds

[@rockytop000]

Great video!

[@therapy2009]

Thank you: with every video you are confirming I'm on the right path. Now we have 7 properties in the historic part of Turin, the first capital of Italy, at the end of next year we'll have 12; all differt, all thought to be special and give a unique experience. Thank you again and come to visit us. Tons of movies are filmed here (we host lots of artists) and sold as filmed in Rome, Paris, Vienna 😂. A movie and some tv commercial spots have been filmed in our properties; It's the most esoteric city of Italy, we have the second greatest egiptian museum in the world, here is born the movie making, here Miyazaki fell in love with airplanes and the 500 fiat car and Nietzsche lived. Thank you again ❤

[@dsmithalexander]

What’s your occupancy like? Upside is that it’s unique. Downside is that.. it’s unique. You can only attract one kind of customer. How do you navigate this?

[@therapy2009]

@@dsmithalexander 85/90%

[@ZockyPocky]

Wow man! You look so smart! What a style! (I'm not gay 🙃!)

[@claub5438]

how do you avoid paying federal taxes ?

[@johnkroeger9352]

You don’t….

[@parasitius]

Stop trolling.

[@TheDweezy87]

Great news

[@ladyme578]

Why? What’s causing this?

[@ladyme578]

Okay i still listening to

[@ARrights]

He explains in the video. 🧐

[@parasitius]

Do you have ears?

[@parasitius]

Well this is certainly interesting and not at all what I expected. I would be a all year around Airbnb guest but I find hosts refuse to compete on price. To me the only benefit of an Airbnb over a hotel is boiling eggs, boiling water for pour over coffee, and the fridge. I solved my biggest life problem by now carrying an egg cooker and collapsable water boiler with me all year in my suitcase. This leaves only the fridge, yet somehow hosts think it is reasonable to charge 2,3 kay a month for a place where I get no cleaning service during a multimonth stay & I get nasty comments that prevent me from renting if I don't do cleaning myself that I'd never do even if I had a home. Terrible experience having to worry about these non-business minded hosts types leaving me rage comments. I can find hotel deals and get a hotel 2/3rds the Airbnb price. I stick to booking for 10 months a year now and sixty-five-ish days in Airbnb.

[@beaglez64]

I see why hosts leave you nasty comments I am familiar with this kind of guests .If you are not ready to keep clean even your own house I can only imagine what a messy space you leave after a long stay

[@michaelmenes]

We make a so-so return by owning the rentals with no mortgages, cleaning ourselves, repairing and managing them. Not surprised to hear this.

[@sheilakilby5162]

same here

[@metaformas5960]

Where are located your rentals?

[@sheilakilby5162]

@@metaformas5960 Just outside of Asheville NC.

[@michaelmenes]

Maine

[@eddiemalvin]

That's interesting and a bit surprising. Is that due to a lower occupancy rate? Competitive pricing from other rentals? Two of our biggest monthly expenses on our rentals are the mortgage payments and cleaning fees. We earn a decent profit as it is but with those line items out of the way we'd be crushing it.

[@kfx216]

I'd like to see numbers that support these fails, like AirBnB stays have dropped by 20% or average reviews at the failures vs. others, etc. Otherwise, it just seems like the usual trying to jump on the bandwagon, throw a bunch of $ at it, poor management, too much supply, crash and burn that has happened in many other formerly "hot surefire" ways to make $. You kinda mention they tried to be more like hotels, so maybe the prob they charged the same amount with less service. Good point re: memorable stay, but since you asked...

[@sanjayaiyar4351]

He’s right. It’s simple. The novelty of just getting out of the house is over. People are only paying if they can get something they can’t get at home. That means amenities, fun, experiences, activities nearby, etc.

[@mentesanaincorporesano]

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