I always loved seeing the differences between hotel suites and hosted Airbnb spots, especially since Dallas is a growing hot spot for both. The emergence of home sharing, starting in 2008, had pressured hotels to adopt more flexible hotel rates, unique lobby layouts, and localized dining options if they wanted to compete. But the home sharing market, that has slowly been disrupting the entire hotel industry, is now possibly at a disadvantage with the rise of COVID-19 cases. Hotels typically have more structured social distancing protocols and in-depth hygiene policies, which is a huge plus for cautious travelers. This new dilemma, combined with the dwindling travel market, has been making Airbnb hosts more nervous. A May 2020 survey created by IPX1031 showed that 47% of the hosts interviewed weren’t comfortable renting out their properties for the foreseeable future and the average host had a revenue loss of $4036 since the pandemic started. Airbnb has seen this revenue drop and has been making rapid corporate changes to survive including a layoff of 1900 employees, a draft registration to the Securities and Exchange Commission for an IPO, and the August 20th global party pan in Airbnb listings. But how will these changes effect the individual hosts within the DFW community when they already have so many outside factors hurting their businesses? I reached out to Ashley Wolfe, a host of log cabin Airbnb spots deep in the Texas triangle, to discuss what we can expect of home sharing during COVID-19.
Hello Ashley, many Airbnb hosts have been split on whether to create discounts or add incentives to ward off cancellations. Which strategy have you been more invested in and which one do you think will be more effective post-COVID?
We had a stampede of cancellations in March and April but knew that we couldn’t argue with the reality at hand. Even if we made changes, events in the area were already being canceled due to COVID-19. It was very important to be very respectful of guests who want to cancel because arguing will only make the situation worse. We might lose a two night stay but the guests will choose our location over the long-term because we were transparent with them and kept their needs in mind. We decided not to start offering discounts or added incentives in a hurry because we didn’t want to low ball the value that we offer to guests. Our sites are clean, well-maintained, and in a prime location for the perfect getaway which shouldn’t be undermined by a 10% discount offer.
Airbnb has noticed a 20% increase in long-term bookings in April 2020 compared to last year. Why do you think people are now booking longer stays during COVID-19 and have you needed to market differently to get longer bookings?
Our sites have a minimum booking of two nights and the long-term stays have really boosted in our sites North of Austin compared to South, because the South area is known to be more of weekend spot. Airbnb spots that will have increasing long-term stays must have the right mix of local amenities that can keep people entertained for more than a few days. Our guests have also been regularly adding an extra day during their stay because of the remote capabilities. In a climate where people are now working from home, our locations benefit from high-speed WIFI that allow people to pull out their laptops in the living room. Our Airbnb cabins are also stocked with essential goods and snacks, so people can stay longer knowing they have toothpaste and popcorn for an extra day.
Brian Chesky, CEO of Airbnb, stated that the “crisis has sharpened our focus to get back to our roots, back to the basics, back to what is truly special about Airbnb”. What does “back to the basics” mean in your view and how will Airbnb get there?
The Airbnb business model started with air mattresses which is definitely a straight-forward system. “Getting back to the basics” can mean to get back to that simple structure of hosts offering high-quality rooms for payment and building up that major connection of trust again. The whole model relies on a trusting and transparent communication between the hosts and guests because the guests are hoping the location is of high value and the hosts are wanting the guests to treat it like it was their own home. If the host can communicate efficiently and offer incredible services with the safety and health of everyone in mind, their spots will be booming with business. We have never wavered from these fundamental points and are even regularly trying to improve the sites. We’ll regularly purchase fresh flowers for guests or update the decor to the current season.
Henry Harteveldt, a principal at the advisory firm Atmosphere Research Group, stated that “cleanliness will be the new on-time performance or low-price offer that people use to determine which airline to fly”. What protocols do you have in your listings to ease guests on the cleanliness of their rooms?
A key strength in our locations has always been cleanliness and it’s the first thing I want guests to notice when they walk through the front door. If there’s ever a guest experiencing less than 5 stars at one of our properties, which is rare, we want to know as much feedback as we possibly can in order to make immediate improvements. That regular communication and asking for client feedback is what leads to our locations becoming well-reviewed destinations. We were always effectively using disinfectant products and always asking our housekeepers to wear protective gloves when handling these disinfectant items. I want to make sure all parties, including guests and housekeepers, are safe during this pandemic. COVID-19 has prompted us to start asking guests to take preventative measures and wipe down any high-touch surfaces for the safety of the housekeepers. Our guests have been very respectful of this and have been proactive in cleaning up after themselves.
Do you see any keywords, amenities, or designs becoming popular during COVID?
We’ve noticed that guests can be astounded by the little items that a host might think is inexpensive or not noticeable. We regularly stock our locations with travel size shampoos, toothpaste, and razors because it would suck to not have those things in the woods. We also keep our kitchen stocked with a pantry full of spices and even the guests pitch in by sometimes leaving fresh ingredients or condiments. This really gives the feel of a community kitchen and fosters that classic Airbnb environment. When the kitchen is stocked with snacks and spices, the guests know they’re taken care of when coming up from a long road trip. Other things that will be popular is more outdoor gear that the guests can use in their surrounding environment like paddle boards for a nearby lake. In our locations, we make sure guests can come with just the clothes on their backs and still enjoy the experience.
