Stayz vs. Airbnb: Which is better?

In just over a decade, Airbnb has become one of the most popular listing sites for holiday home properties, and there are several reasons why.

For starters, it has transformed the way people travel, making it easier and more affordable for people to find quality accommodation when they are on the go. Another one of the reasons why Airbnb has been so successful is that it offers a unique value proposition to both travellers and property owners.

For travellers, Airbnb provides an alternative to traditional hotels that is often more comfortable and less expensive. For property owners, Airbnb offers a way to monetise their investment properties by listing them on the platform and renting them out on a short-term basis, as opposed to the traditional route of long-term tenants.

But, Airbnb isn’t the only platform that offers similar services. In fact, there are a myriad of alternative websites that offer travellers other options to book holiday accommodation. But with Airbnb’s strong brand recognition and track record of success, how do these other booking sites compare?

Stayz is one of the leading short-term rental portals in Australia and is an ideal alternative platform for investors who want to tap into the growing demand for short-term rentals.

So, which platform is likely to generate a higher return on investment? Stayz vs. Airbnb?

Let’s take a look.

Establish a Pricing Strategy That Makes Your Airbnb Profitable

When pricing your Airbnb rental, there is no one-size-fits-all approach. The amount you charge will depend on various factors, such as the location of your property, the amenities you offer, and the time of year. Like traditional renting, you’ll also need to strike a balance between competitively pricing your property and ensuring that it yields a profit. Luckily, a few tried-and-tested pricing strategies can help you achieve this.

First, it’s essential to do your research and find out the rental income earned by similar properties in your area. This will give you a good starting point for setting your average nightly rate. Second, don’t be afraid to experiment with different pricing tiers to see what works best for your property.

You may find a dynamic pricing strategy works, which involves adjusting your Airbnb listing prices according to demand (this is certainly what GrowHOST delivers for all our property owners). This can be a great way to maximise occupancy during busy periods.

Another option is to offer discounts for more extended stays, which can encourage guests to book for a longer duration. This is a strategy we typically adopt to try and ‘build some base’ and attract some bookings well in advance of arrival dates.

Then, once we have some bookings in place and as we move inside four to six weeks prior to arrival period, we begin testing the market and pushing rates a little harder to maximise the yield.

Whatever strategies you choose, remember to monitor your occupancy and adjust your prices in line with your own and the markets’ demand patterns. With a little trial and error, you’ll be able to find a pricing strategy that helps you maximise your chances of becoming an Airbnb Superhost.

 

What is Airbnb’s Competitive Advantage for Short-Term Rentals?

While platforms like Booking.com and VRBO were established more than a decade before Airbnb, Brain Chesky and Joe Gebbia found a way to tap into a previously untapped market: the sharing economy. Instead of exclusively advertising hotels, motels, and guest houses, Airbnb gave people the option to rent their apartments, homes, or individual rooms on a short-term basis to make some extra money.

And so, Airbnb’s competitive advantage for investors is that it provides a unique product in a rapidly growing market.

• Strong brand recognition: the company has built up a strong reputation by offering an innovative and convenient service that meets the needs of travellers around the world. Thanks to its unrivalled global reach, Airbnb has become one of the most recognisable brands in the travel industry and has become a household name. In fact, it has become a term within itself, much like it wasn’t uncommon for a vacuum cleaner to be called a Hoover, people are often heard saying they are going to ‘Airbnb’ their property! This strong brand recognition is a major driver of investor success on the site.
• Demand: demand has been driven by the increasing popularity of travel experiences that are more authentic and immersive. In addition to its well-known home rental service, Airbnb also offers “Experiences,” which are local tours and activities led by locals. This unique offering has helped Airbnb stand out from the competition and further grow its user base.
• Scalability: they’ve been able to scale rapidly to meet this demand, and they now have a presence in over 190 countries — meaning investors have access to a huge global audience. The core offering has moved far and away from its ‘sharing economy’ roots, and is now seen as a genuine travel distributor competing with bohemeths like Booking.com and Expedia.

Beyond that, there are a few other benefits to advertising with Airbnb, including:

• flexible fees;
• freedom to choose when you want to rent and at what price;
• user-friendly interface and 24/7 customer support;
• built-in market of travellers; and
• robust system for managing bookings and guest communication.

 

 

Why You May Want to Consider Stayz as an Alternative to Airbnb

While Airbnb may seem like the most obvious choice because of its global reach, have you ever thought of doing a simple Google search locally? Or add “Australia” to the end of your search? Stayz is near the top. In fact, it’s the first link guests can click on.

Stayz dominates the local vacation rental market, so it’s definitely a worthy competitor for Airbnb. Beyond the high website traffic volumes (thanks to promotions from its partner platforms such as HomeAway and VRBO), there are a few other benefits to advertising your property on Stayz, including:

• User-friendly management interface (similar to Airbnb, so you’ll be able to get up and running quickly);
• full booking control (so you can choose who stays in your property and when); and
• if you do get any bad reviews, they won’t impact your property’s search ranking on the site.

Of course, there are a few potential drawbacks you may want to consider before promoting your property on the site, including:

• the commission-based fee structure means that the higher your prices are, the more you pay to list the property;
• they don’t offer an option like Airbnb where you can allocate a portion of the fees to guests;
• the platform only pays out your booking fee 7 days after the guest has made the final payment (this can cause cash flow problems for hosts who are counting on that income to cover expenses); and
• their ranking system is based on commission, so more expensive properties are listed higher, regardless of quality or good reviews.

Comparing the Two Sites: Stayz / Airbnb

For investors, both these companies offer an appealing proposition: the ability to earn rental income without the hassle of being a landlord. But which platform is the better investment?

On the one hand, Airbnb has a strong brand and a vast network of properties. It is also well-funded and continues to grow rapidly. On the other hand, Stayz offers the benefit of high website traffic, which means travellers booking in Australia might find a property on Stayz before they even venture to Airbnb. It also has a growing portfolio of properties in popular holiday destinations.

Both have their own benefits, so it’s worth considering marketing your property on both to increase your visibility. That said, managing rentals on both websites can be time-consuming and leave you open to potential errors. If you find that one platform is outperforming the other in terms of bookings or enquiries, it may be worth switching your focus to just the one site.

Of course, this decision will ultimately come down to what works best for you and your property.

 

Key Takeaways

There’s no doubt that the short-term rental market is booming. With more and more people looking for affordable, convenient accommodation, platforms like Airbnb and Stayz have become increasingly popular.

But which of these two platforms is better for investors?

Ultimately, it depends on your individual circumstances. If you’re looking to maximise your return on investment, then becoming a Superhost on Airbnb may be the goal to aim for. If you’re looking for potentially better local visibility, then Stayz may be a better option.

However, it doesn’t have to be an either/or decision. While either platform provides you with a one-stop-shop for booking management, distribution, sales, and marketing, there is a way you can run your short-term rental business on multiple platforms. This requires implementing your own property management software and implementing the use of channel management technology.

If these latter options sound appealing, you might find it helpful to engage the services of a professional property management company. There’s a lot that goes into managing a vacation rental, from finding the right property and location to ensuring it’s well-maintained and stocked with all the amenities guests need. And of course, there’s marketing and advertising the rental to make sure it’s getting a sufficient number of bookings.

A property manager can take care of everything from marketing the property to coordinating cleaning and repairs. As a result, property owners can enjoy the benefits of renting out their home without having to deal with the day-to-day management.

If you’re considering renting out your investment property on Airbnb, get in touch with GrowHOST today. We can help you create your listing, manage all of the bookings, handle guest communication, forecast your returns and a range of other property management services.