Analysis: Airbnb 2023 Winter Update: More Host Competition, More Guest Value

Airbnb’s latest release is more than a mere flurry of feature updates; it’s a calculated push to subtly steer hosts towards behaviors that bolster Airbnb ’s bottom line.

The new Guest Favorite badge makes Superhosts second-best. Introducing the Guest Favorite badge isn’t just about rewarding top-tier listings; it’s a strategic play to intensify competition among hosts, driving them to outdo one another for that prized recognition.

By integrating service fees and taxes into the pricing calendar, Airbnb cleverly pressures hosts to lower their rates, fostering a more cost-competitive facade for the platform.

And the revamped property listing and management tools? They’re a clear signal for hosts to forgo third-party PMS solutions in favor of Airbnb’s all-in-one ecosystem.

Very smart moves with great-looking product features!

Best regards,

Thibault Masson

Founder, Rental Scale-Up

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(Strategy) Airbnb 2023 Winter Release: More competition for Hosts, more value for money for Guests

• More Value for Money for Guests: Airbnb's Winter 2023 Release strategically aims to escalate competition among hosts, with a clear objective to increase the value for money for guests.
• More Competition-Driven Quality Improvement: The introduction of the "Guest Favorite" badge is a direct challenge to the Superhost status, designed to motivate hosts to improve their offerings for better visibility and ranking in search results.
• Subtle Price Adjustment Tools: Upcoming pricing tools, loaded with insightful market data, are subtly designed to guide hosts towards reducing their prices, thus enhancing affordability for guests.
• New Pressure Point - 'Value' Score: The inclusion of a 'value for money' score in public reviews adds a new dimension of competitive pressure, prompting hosts to reassess and potentially lower their pricing.
• Improving its Platform Play: Airbnb is expanding its platform to include a variety of business opportunities, from co-hosting and cleaning services to smart lock companies, all aimed at improving the overall guest experience.

(features review) Airbnb Winter 2023 Release updates: Host side

• For this?2023 Winter Update, Airbnb is giving hosts tools that can help the platform increase its conversion rates.
• There are several new features such as a new Listings tab, where hosts can easily update their listing content and photos, an AI-powered Photo Tour for better visual representation, and improved Smart Lock Integration for secure guest access.
• The revamped Earnings Dashboard offers hosts detailed insights into their finances with customizable reports and transaction breakdowns.
• The Co-Host program has been expanded, emphasizing efficient communication and flexible payouts, and introduces new pricing features like the Compare Prices tool and improved Pricing Visibility.?
• Read on to see what these features look like, how they function, and the pain points Airbnb is hoping to solve with them.

(features review) Airbnb Winter 2023 Release (Guest Side)

• By introducing Guest Favorites and Revamped Ratings and Reviews in its?Winter 2023 Release, Airbnb is escalating its fight for value for money in terms of both quality and price.
• These changes can be seen as a form of gamification, encouraging hosts to strive for excellence to unlock the coveted Guest Favorite badge for their listings.
• The properties that receive the Guest Favorites badge are judged based on two key metrics reported by past guests: Great ratings and reviews and Outstanding reliability.
• For owners of new properties, this means that the pressure to accumulate positive guest reviews quickly is now more critical than ever.
• It’s important to note that Guest Favorites is separate from the existing?Superhost?designation, which is a badge awarded at the host account level.?
• The visibility of the Guest Favorites badge has already eclipsed that of Superhost in listing pages.
• The Winter 2023 release also brings about changes to Airbnb’s Ratings and Reviews system, which once again with Airbnb’s broader goal of providing more value through both guest experience and competitive pricing.
• Read on to see what these updates look like, how they function, and how they impact hosts.

Industry Events

The Big Boostly Bash 2023

Boostly invites you to an exceptional event at York Racecourse, where you can connect with hospitality industry peers in a relaxed atmosphere. Leave your business cards and pitches at home as this event is all about socializing and having a great time.

?? York Racecourse, UK

?? November 14, 2023

??? Buy Tickets

No #FOMO

Last week, I shared my takeaways from the recently concluded Vacation Rental World Summit in Barcelona, and reported on two significant changes by Google to its Vacation Rentals search, while Uvika shared her analysis of Airbnb Q3 2023 financal results, and rounded up recent industry news featuring Vintory, Superhog, and Boostly.

That's all for now.

Have a great rest of the week!