At Hostmaker we love data, and since we are the major Airbnb property manager with a specialised pricing team and access to terabytes of raw data provided by Airdna, we are able to capture daily price points for each listing, any change on it and whether they are still bookable or not. And up to some extent similar information is available for other platforms.
Unfortunately, there are limitations on what information Airbnb enables you to capture from other profiles. The most basic is that we cannot know for certain if a day is booked or just blocked on Airbnb, but our proprietary algorithm is able to estimate that likelihood. That is how we are able to come up with this analysis.
It is due time to unleash more data in order to prove our point here. Airbnb occupancy tends to be quite low, ranging from 30-50%, whilst hotel rooms tends to be at 70%+. Hostmaker properties perform on a par with hotels or better whilst still maintaining a high Average Daily Rate (ADR).
If you check the examples below, you will see how our ADRs are between 15-30% above the Airbnb averages month on month and yet our occupancy level is between 15-30 points higher too. Of course there are much more factors playing around, but it mostly comes down to tailored strategy on property-level, neighbourhood-level and city-level factors that makes our properties outperform competitors systematically.
Now, let’s introduce a new metric. If we multiply ADR and occupancy, we get the so-called Revenue per Available Room or RevPAR. In simple English this is how much income you would get on average per day during which the property is available. So either because our occupancy is high while ADR is similar to other Airbnb listings, or because whilst having similar occupancy rates we achieve higher ADRs, the RevPAR in all of our cities is systematically higher than Airbnb. In fact it is between 1.4 and 2.3 times higher depending on the city. A few more charts to prove this point:
In the end this performance is the result of all our efforts at Hostmaker, not only on pricing but also on tailored listing and design services, friendly guest communication team very responsive on maintenance issues plus the hotel-quality trained housekeeping staff.