The Boostly Podcast: "Superhost Status: Myth or Reality? Let’s Look at the Data"

Release Date: October 28, 2024
Host: Mark Simpson
Guest: Kenny Bedwell, CEO of STR Insights

Introduction

In this insightful episode of The Boostly Podcast, host Mark Simpson engages with Kenny Bedwell, CEO of STR Insights, to unravel the realities behind Airbnb's coveted Superhost status. Delving into data-driven discussions, Mark and Kenny explore whether achieving Superhost status genuinely benefits hosts or if it's merely a marketing tool employed by Airbnb.

Understanding Superhost Status

Superhost Prevalence and Criteria

Kenny begins by addressing the prevalence of Superhosts on Airbnb, revealing that 56% of all hosts hold Superhost status (04:13). This statistic challenges the notion that Superhost status is exceedingly rare or difficult to achieve. Kenny explains the criteria required to attain this status:

• At least 10 nights booked within a single quarter
• A minimum of five individual reviews
• An overall rating of 4.7 or higher

Mark highlights the competitive landscape by stating, “Every two people is a Superhost” (04:13), emphasizing that while the badge is significant, it is attainable for a substantial portion of hosts.

Impact on Revenue and Listings

Kenny discusses the tangible benefits of Superhost status, noting a slight increase in revenue for those who achieve it due to its function as a filter on Airbnb (04:30). Properties with the Superhost badge are more likely to be seen and booked, as many guests use this filter to ensure quality and reliability. However, Kenny clarifies that while beneficial, Superhost status is not the ultimate goal for all hosts.

Challenges and Risks of Airbnb's System

Account Suspension Anecdote

A significant portion of the discussion centers around the vulnerabilities associated with Airbnb's system, particularly the reliance on automated algorithms powered by artificial intelligence. Kenny shares a personal experience where his entire listing account was frozen following a seemingly innocuous guest comment about finding a "crack pipe" (07:36). This incident underscores the risks of Airbnb's stringent and sometimes overzealous automated moderation, which can have severe repercussions for hosts.

Mark echoes these concerns, pointing out the potential fallout if a listing remains suspended unnoticed: “That's not just one listing, that's your whole account” (08:52). This scenario highlights the precarious balance hosts must maintain between maintaining high ratings and navigating Airbnb’s automated policies.

Introducing the Guest Favorite Badge

Definition and Criteria

Shifting focus, Kenny introduces the Guest Favorite badge, a relatively new accolade on Airbnb. This badge represents the top 20% of Airbnb properties based on ratings and reviews (12:05). To achieve this status, a property typically needs:

• An average rating of 4.85
• Approximately 10 reviews

Kenny notes that properties meeting these criteria experience an average revenue increase of 11% (12:48), making the Guest Favorite badge a valuable metric for hosts aiming to optimize their earnings.

Continuous Evaluation

Unlike the quarterly evaluation for Superhost status, the Guest Favorite badge is updated systematically and continuously. Kenny explains, “It's a toggle as well. It's just literally top 20% rolling as time goes on” (12:51). This dynamic system ensures that only the highest-performing listings retain the badge, encouraging hosts to consistently maintain high standards.

Strategies for Hosts to Enhance Their Status

Maximizing Reviews Through Direct Communication

A key strategy discussed is the importance of maximizing guest reviews to bolster both Superhost and Guest Favorite standings. Kenny shares his approach of leveraging SMS messaging to personally request reviews, achieving a 90% review rate:

“I even started texting them, hey, do you mind leaving me a review? Here's a link. And they leave me the review, making it more personable for them.” (15:54)

Mark concurs, highlighting the effectiveness of automated messaging tools within Property Management Software (PMS) to facilitate this process, thereby increasing guest engagement and review rates.

Emphasizing Multiple Revenue Streams

Both Mark and Kenny advocate for diversifying revenue streams beyond Airbnb. While Airbnb remains a dominant platform, relying solely on it can be risky. Kenny advises:

“You can't just bet on one product like Airbnb, you can't just bet on direct. You got to have multiple revenue streams coming in.” (15:54)

This approach ensures stability and resilience against potential platform-specific disruptions.

Current Trends and Future Insights

Tracking and Leveraging Amenities

Kenny emphasizes the importance of staying abreast with Airbnb's evolving list of amenities. By analyzing data through STR Insights, hosts can identify which amenities significantly impact revenue. For instance, amenities like outdoor bowling alleys have shown a positive correlation with higher earnings (17:35).

Mark adds that tools like STR Insights are invaluable for data-driven decision-making, allowing hosts to tailor their offerings based on regional and market-specific trends rather than generic assumptions.

STR Insights' Role and Services

In concluding the discussion, Kenny highlights the services offered by STR Insights, particularly for US-based investors and those looking to invest in the US market from the UK and Europe. STR Insights provides:

• Data access for identifying profitable deals
• Consulting services to guide investors through the process
• Customized solutions for deal finding and market analysis

Kenny encourages listeners to connect via their website or social media for personalized assistance in optimizing their short-term rental investments.

Conclusion

This episode of The Boostly Podcast offers a comprehensive examination of Airbnb's Superhost and Guest Favorite statuses, backed by data and real-world experiences. Mark Simpson and Kenny Bedwell provide valuable insights into leveraging these badges to enhance revenue, while also cautioning against over-reliance on a single platform. Hosts are encouraged to adopt data-driven strategies, utilize advanced tools, and diversify their revenue streams to thrive in the competitive short-term rental market.

For more information and to take advantage of the discussed strategies, listeners are invited to explore STR Insights’ offerings at sdrinsights.com.

Notable Quotes

• Mark Simpson:
  “Every two people is a Superhost” (04:13)
  “That's not just one listing, that's your whole account.” (08:52)
  “You can't just bet on one product like Airbnb, you can't just bet on direct. You got to have multiple revenue streams coming in.” (15:54)

• Kenny Bedwell:
  “I even started texting them, hey, do you mind leaving me a review? Here's a link. And they leave me the review, making it more personable for them.” (15:54)
  “If you are split between two platforms like Airbnb, BRBO, maybe even you have your own direct booking site, and you're not getting reviews and ratings in Airbnb, they're going to punish you.” (14:17)
  “The guest favorite badge actually represents the top 20% of Airbnb properties based off of ratings and reviews.” (12:05)

This detailed summary encapsulates the key discussions and insights from the episode, providing a comprehensive overview for those who haven't had the chance to listen.