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Airbnb Market Analysis

How To Perform An Airbnb Market Analysis

Research – airbnb market analysis.

Understanding your market is the first step to professional vacation rental management . It is important to become a destination expert, analyze your competitors, and educate yourself on the unique regulations of your market. The more you understand your market the better positioned you will be to compete and the higher the chances of your success.

Market Research Tools

Airdna is a great tool we recommend to analyze your competitors and formulate a better understanding of the revenue potential of your market. The software offers a free and paid version. The free version will allow you to do basic market research and is the best starting point for a beginner. If you’re really serious about a market and want a deeper look into the analytics you can purchase a subscription for your town. Most towns cost between $10.00 – $50.00 per month. Read our Airdna review here .

how to do market research for airbnb

Among the most useful and actionable tools that we make use of with Airdna is the Rentalizer tool aka the Airbnb Financial Calculator. This tool allows us to narrow down on a specific address and get a 12 month forecast. See below for an example that narrows into a specific Venice, California studio.

how to do market research for airbnb

Hosting Groups

Joining short term rental Facebook groups are another great – and free – way to learn more about a specific market. Some of the groups have thousands of people who have real world experience running and managing vacation rentals.

Lifty Life in fact operates a number of local hosting Facebook groups.

  • Join the BC Short Term Rental Hosts Facebook Group
  • Join the Alberta Short Term Rental Hosts Facebook Group
  • Join Central Okanagan Airbnb Host Community


Analyzing your market requires you to understand seasonality. When is it peak season? When is the low season? Whistler for example has peaks during both the Winter and Summer seasons, although Winter remains stronger. In order to maximize my ADR during these dates I keep prices high and allow the occupancy of the town to increase. As these peak dates approach supply in the town drops and demand increases. As such I can maximize my ADR by being patient. The off-season in Whistler happens to be Fall and Spring. During these periods my strategy is to keep my prices very competitive. In order to be among the first to book these dates and ensure I keep a strong occupancy rate.

You will also want to be aware of all major holidays and events. Heightened demand during these key dates allows you to increase your rates. In addition to major holidays such as New Years and Christmas it is extremely important to be aware of local events. Utilize the city website to get a sense of major events or simply google events in your town. Events to look out for are conferences, major sports events, long weekends, concerts, cultural events, etc. Major events in Whistler for example include Cranxwork, The World Ski and Snowboard Festival, Tough Mudder, Wanderlust, The Ironman Triathlon, and the Whistler Beer Festival, to name a few. I keep careful track of the dates of these events to ensure I maximize my nightly rates.

Beyond understanding important dates it is extremely beneficial to be knowledgeable of the best places to grab coffee, dinner, sight-see, park, etc. Guests frequently request local suggestions for things to do or places to eat in your city. If you ever get a request for a recommendation that you aren’t really sure about don’t hesitate to check out reviews online. Guests will really appreciate that extra effort. The difference between a great host and a mediocre one is how much value they provide their guest. Local knowledge is both free and one of the most important services you can provide your guests. I make sure to list all my favourite places such as Mount Currie Coffee which happens to be directly across from the unit on a guide that I make available to guests.

airbnb market analysis


In conducting an Airbnb market analysis you should find a few similar properties to benchmark against. There is no point in comparing yourself to a 4 bedroom home with top shelf finishings if your property is a 1 bedroom apartment furnished by Ikea. Make sure to compare yourself to your closet competition.

Look for competitors:

• In the same neighbourhood or closeby

• Properties with the same configuration (same number of bedrooms, beds and bathrooms)

• Properties with comparable finishings and amenities

The questions you should be asking are:

• How many direct competitors are there? What marketplaces are they listing on?

• How are they pricing themselves and how much of the calendar is still open?

• How many reviews do they have? What is their overall rating?

• How do their amenities and furnishing compare to my own? Are they providing unique amenities such as an espresso machine or use of their bikes?

After comparing yourself to the market you should reconsider your strategy. Is your pricing too high compared to the market? Do competitors have a lot more reviews than you? If so perhaps you need to follow up with your guests and request they review you with a 5 star. Should you consider what unique amenities will help make your property standout. There is a lot of insight that can be learned when comparing yourself to others however it is a mistake to simply copy your competition. Always be looking for ways to improve on what others are doing and optimize your listings to be the best in the market.

Airbnb Guests

Consider the types of guests that visit your destination. You can use Airdna to use a sense of where guests are coming from and some demographic details on them.

  • Do guests of this market have the income to support your business?
  • Is there enough guest demand in your market to keep occupancy high enough?
  • Is their an identifiable target market that you can market your listing towards?

If you need help to identify your target market, utilize our Airbnb Target Market complete guide to help you through the process.

Regulations are one of the most overlooked aspects of a short term rental. Always consult with your municipality and ensure that your property is properly zoned for tourist accommodation services. Whistler for example has very complex zoning regulations that restrict self-managed vacation rentals. If you launch a STR and find out a few months later that it is illegal, your business will suffer significant losses.

Regulation is further placed on short term rentals by stratas or HOA’s. Most apartment buildings are cracking down on short term rentals and the fines can often be extremely expensive. We do not suggest defying the bylaws passed by your strata or HOA. Illegal rentals increase the risk to you and often make for a very bad experience for guests. Guests being told “don’t talk to neighbours” or “don’t say your staying at an Airbnb” instantly have a bad impression of your unit before they even step in the door.

Finally consider the implications of running a rental on your taxes. Consult a tax professional on how this will impact you.

With all this research under your belt you’re ready to start dominating your market and providing superior guest service!

Airbnb Market Analysis Summary

  • Utilize tools such as Airdna to analyze your market
  • Join and interact in community Facebook groups
  • Analyze the seasonality of your market (High season/ Low season)
  • Look up important local events so that you can price appropriately
  • Learn about the best restaurants, bars, and amenities in your town
  • Analyze the customer base of the market use our Airbnb Target Market guide to help your through the process
  • Benchmark yourself to similar priced and sized listings
  • View their calendar to understand booking trends
  • Compare their reviews to your own
  • Look up government regulations on Airbnb in your market

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Airbnb market research for profitable investments, key takeaways.

Diligent Airbnb market research and analysis is at the core of every successful short-term rental investment. While location is important for all real estate investing decisions, it’s absolutely crucial for vacation rentals. The market determines every aspect of the feasibility of an Airbnb business, including the daily rates, the occupancy rate, the rental income, the ROI, and the legality.

In this article, we’ll walk you through the steps of the Airbnb market analysis and research you need to implement for profitable investments. We’ll also look at the best tools to support you throughout the journey. 

Finding an Airbnb Market

The first step in investing in an Airbnb rental property is choosing the right market. With thousands of potential destinations across the US market, you need to conduct careful, data-driven research to locate the best place for your specific needs and aspirations.

The best short-term rental markets have a lot of features in common. For example, they attract numerous domestic and foreign visitors throughout the year, which drives high Airbnb occupancy rates. In addition, they are established markets with active listings which are not oversaturated yet, allowing for good nightly rates and rental revenue. They also offer affordable property prices to push up returns.

This is a lot of information to factor in, which randers the question:

How do you find the best Airbnb markets for investing?

The answer is:

With the help of the Awning Top Markets tool.

What Does the Awning Top Airbnb Markets Tool Do for Investors?

The Top Airbnb Markets tool available on the Awning platform allows investors to find the top locations for investing in short-term rentals for sale at the moment. The tool uses nationwide, up-to-date data from Airbnb as well as Awning’s proprietary algorithms to help investors make data-driven decisions.

There are two main things that Airbnb investors can do with this tool.

First of all, when you open the tool, you get a list of the 100 best Airbnb markets across the entire US. This means the 100 US cities that bring the highest ROI for vacation rentals. You can change the filter to rank the 100 best Airbnb markets based on other important criteria including:

  • Highest ROI : This is the most straightforward way to search for profitable markets. However, they might be beyond your budget.
  • Highest revenue : With this, you can concentrate your analysis on the locations that’ll make you the most money month after month. But property values are also likely to be high due to the standard of living, so the return might be suboptimal.
  • Highest price : These markets might be appropriate for experienced investors with a lot of capital and access to the best Airbnb financing . These locations will benefit from less competition than more affordable places.
  • Lowest price : This lists the most affordable Airbnb markets that are good even for beginner inventors.
  • Highest number of Airbnbs : This allows you to look for well-established vacation rental markets with multiple opportunities.
  • Lowest number of Airbnbs : This helps you focus your Airbnb market research on locations where supply is low and the market is not oversaturated.

Using these sorting features, investors can get a preliminary idea of what markets make sense for their specific budget and aspirations.

The second thing that investors can do with the Awning Top Airbnb Markets Tool is to focus their search on markets with certain features and characteristics.

How Investors Use the Awning Top Airbnb Markets Tool

The best way for Airbnb investors to use the Top Market tool is to start off by setting up their preferred values in the available filters. The tool provides the following options:

  • State : You can choose as few or as many states as you’d like to consider for your short-term rental investments. In this way, your Airbnb market research can focus on the states with the most tourists and the best regulations.
  • Market size : You can choose between a small market (less than 100 Airbnbs), medium market (100-500 Airbnbs), and large market (more than 500 Airbnbs). You can decide whether you prefer to invest in a market with more supply or less supply of short-term rental listings.
  • Average Airbnb price : You can set up the minimum and maximum purchase price that matches your budget and financing options. Both cheap and expensive Airbnb markets have their pros and cons. Lower property prices might enhance the ROI as it’s present in all ROI formulas, but competition might be too fierce. Higher home values result in lower returns, but there will be fewer competitors, making Airbnb investments more feasible. In any case, make sure you don’t exceed your pre-calculated budget as that’s a guaranteed way to fail in real estate.

With the help of these filters, you can customize your Airbnb market research to match your exact situation as an investor. As soon as you set up any or all of the criteria, the list of the 100 top markets that meet these requirements will be updated. Then you can sort it by the filters mentioned in the section above.

Understanding Airbnb Market Data

Using solid Airbnb rental market data is a must for savvy investors. However, there are so many numbers that are not always intuitive and don’t always make sense, especially for beginners. Here we’ll take a look at the Airbnb data and analytics that you need to focus on when performing your vacation rental market analysis.

After you’ve identified a few potential Airbnb markets with the Awning Top Airbnb Markets tool, you can use another Awning feature for the next step of the process: The Airbnb market analysis. The tool is the Awning Airbnb Market Data.

Using the Airbnb Market Data tool on Awning is easy. All you have to do is to enter the name of any of the markets you identified during your initial research. Then, the tool will provide you with all the Airbnb market data that you need to decide if this is the best location for your investments.

What Analytics the Awning Airbnb Market Data Tool Provides

Investors get immediate access to:

  • Overview : Awning offers a short description of the general Airbnb investment opportunity at the city level and lists the main factors affecting the vacation rental market.
  • ROI : This is the average annual return on investment which active Airbnb hosts are able to achieve in the city. This is an excellent indicator of how good or bad a market is for short-term rental investments. Of course, individual properties might achieve significantly higher or lower results.
  • Revenue : This is the average Airbnb rental income which hosts get per year. Rental revenue is one of the main determinants of ROI, together with the property price. By clicking on the Revenue tab in the Awning Airbnb market analysis, investors can see the average income breakdown by rental type (entire home vs private room vs shared room) and the number of bedrooms (from a studio to 5+ bedrooms). Moreover, there is a monthly breakdown of revenue over the past 12 months so that investors can understand vacation rental seasonality in the local Airbnb market.
  • Average Airbnb price : This indicates the current average listing price in the city, indicating how affordable the market is. Investors should focus their Airbnb market research on markets within their budget to avoid a foreclosure due to the inability to cover the monthly mortgage payments.
  • Market size : This Airbnb data point shows whether a city comprises a small, medium, or large Airbnb market in terms of the number of active listings for rent. A bigger market might signify more opportunities (after all, investors go to the highest ROI), but it also implies more competition from existing hosts.
  • Number of Airbnbs : This shows the number of active Airbnb listings in the local market and helps you evaluate exactly how many competitors you’ll face.
  • Average daily rate (ADR) : The ADR measures the average nightly rate across the entire city. It is calculated as the average of all active listings, which is based on the number of days for which a property is available for rent, not all days in a year. The average daily rate is one of the two factors determining Airbnb revenue, together with occupancy. By clicking on the Rates tab, investors can see the ADR per rental type and by number of bedrooms. They can also check how daily rates change month by month to reflect seasonality in the local Airbnb market. In this way, you can get an idea of when you’ll be able to increase your listing rate to maximize income and when you’ll need to lower it to not lose guests.
  • Occupancy : The Airbnb occupancy rate is one of the most important data points when analyzing the potential of a short-term rental market. Along with the ADR, it impacts the rental income that a vacation rental can bring. When doing Airbnb market research and analysis, it’s good to focus on cities with an average occupancy above 50%. The occupancy rate measures how many nights a property is reserved out of the total number of nights for which it is listed for renting by the host. As such, it is the most direct measure of demand. The Occupancy tab on the Awning Airbnb Market Data tool shows the breakdown by rental type and number of bedrooms. Monthly breakdown is also available.
  • Listings by bedroom count : This is a visual representation of the distribution of all Airbnb listings by the number of bedrooms. This gives investors an idea of what property size is the most popular in the local Airbnb market.
  • Amenities : The amenities section of the Awning Airbnb market analysis focuses on the two most popular and sought after extras on the Airbnb platform: swimming pools and hot tubs. Specifically, it shows how much more rental income listings that have a pool and a hot tub are able to generate per year. This is a good indicator if it’s worth buying a property with these amenities in a particular location or adding these amenities to an existing property.
  • Rental type : This part of the analysis breaks down the total number of active listings by rental type including an entire home, a private room, or a shared room. If rooms are popular, it might be worth considering renting out an extra space in your primary home. If most listings comprise entire homes, you’d need to purchase an investment property to rent out on Airbnb.
  • Top Airbnbs : The Top Airbnbs tab provides investors with a list of the most profitable short-term rentals in the city. While these properties are not necessarily available for sale, analyzing their features, amenities, listing information, and data points will give you insight into what to look for when buying your own vacation rental in this market. You can organize these top performers by increasing or decreasing revenue, daily rate, and occupancy.

Where Awning Gets Airbnb Market Data

All the short-term rental data available on the Awning platform comes directly from the Airbnb website. It reflects how actual listings perform and what results they are able to provide. This makes the Airbnb market analysis highly accurate and reliable.

Moreover, both the Top Airbnb Markets and the Airbnb Market Data tools are absolutely free of charge. You can research and analyze as many vacation rental markets as you want, without having to pay anything. You don’t even need an account.

Researching Airbnb Laws in a Market

Another important step in the process of finding the best Airbnb markets is researching the local short-term rental regulations. Unlike long-term rentals, Airbnbs face a lot of different restrictions at the state, county, and city level. The regulations vary from simply having to register your Airbnb business, all the way to being strictly prohibited from listing entire homes or non-owner occupied rentals. Thus, before working on buying an investment property of this type, you have to know what rules you will need to follow.

To begin with, you can check out the short-term rental laws in some of the best states and cities for this rental strategy right here on Awning.

The best source for further research on states and cities not included in our guides is the official website of the local government including the municipality website or the city hall website. In case the city code does not mention anything about short-term rentals, you should visit the county website. In some markets, the regulations are imposed at the county level, not the city level. In very rare cases, there are state-level regulations as well, with the only noteworthy example being the Florida short-term rental laws .

The Airbnb website also provides some basic information on local regulations in major cities. However, the data is not always comprehensive and updated. It’s meant to provide initial guidance, but it’s not meant to serve as legal advice.

When researching the Airbnb laws that apply to your selected market, keep an eye on the following:

  • Legality of non-owned occupied short-term rentals
  • Restrictions on the number of nights to rent out per year
  • Limits on the number of guests per bedroom/property per night
  • Safety regulations and device requirements
  • Short-term rental licenses and permits as well as renewals
  • Business registration and license
  • Tax license
  • Transient occupancy tax, sales tax, and other taxes and fees

Learning About Airbnb Guests

To run a successful Airbnb business, your research should also look at the number and type of visitors who come to your market every year as well as when they come. It makes a difference whether you need to cater to the needs of US families with small children visiting to enjoy a beach vacation or foreign business people attending work functions.

Ideally, you want to focus your efforts on a location with a lot of visitors who come year-round. The best Airbnb markets have no low season, allowing hosts to continue generating income every month.

Unfortunately, there isn’t a single one-stop-shop place where you can obtain all the tourist and visitor information that you need for any and every Airbnb market. Thus, you need to conduct your research using a number of different sources. The best ones include:

  • Local city websites : The majority of US cities have a website dedicated to attracting visitors to the location that is run by a non-profit organization or for-profit enterprise. Usually the website is called something like Visit Dallas or Discover Los Angeles . In most cases, these websites will have the best tourism information you can find including the total number of visitors per year. Moreover, based on the types of activities and attractions that they highlight, you can draw conclusions about the types of tourists that come to the city. If the website promotes theme parks, it’s likely that a lot of families with small kids come over. If the website advertises walks on the beach and wine tours, your target guests are likely to be older couples.
  • Local newspapers : Local online newspapers frequently publish articles with updates on the state of tourism in the city and county. These can contain a lot of useful information, such as recent trends in the number of visitors, breakdown of the kinds of tourists, the most popular attractions, what visitors are looking for, etc. To find this information, all you have to do is to enter a relevant search on your favorite online publication.
  • NeighborhoodScout : The Economics & Demographics section of the city page on the NeighborhoodScout website has a breakdown of the major industries in each market. Airbnb hosts can use this data to understand if there are a lot of business travelers coming to the city.
  • Airbnb : Yet another source to learn about the kind of guests that come to a certain short-term rental market is the Airbnb platform itself. You can search for listings in the area that you’re analyzing and read through guest reviews. This will paint a pretty good picture of the typical renter in the market. Moreover, you’ll get to know what they like and what they don’t like about rentals and experiences. In addition, you can filter the listings with the highest overall ratings and check out the amenities and extras that they offer. This will give you an insight into the preferences of your future target guests.

How to Use the Airbnb Guest Information to Your Advantage

Once you’ve gathered data on the kinds of guests that come to your selected Airbnb market, you need to integrate this information into your strategy.

You should consider the following steps:

  • Choose the right property type and size : You should go for the property type that will attract the most guests based on the visitor profile you’ve depicted. For instance, business people would rather stay in a studio in the downtown part of the city, while families with children would prefer a single-family home close to tourist attractions.
  • Add the top amenities : Amenities are one of the most important factors to grab the attention of interested guests and get bookings. Consider providing the amenities that are sought after in the area.
  • Furnish your rental appropriately : The furnishing of your property and the experience that it provides should match what visitors are looking for. For example, if you want to cater to the needs of traveling business people, you should provide a small home office with high-quality internet. If you want to host college students on spring break, you need to provide inflatable mattresses and extra sleeping spaces.
  • Focus your listing : The photos and the language of your Airbnb listing should be targeted towards the guests you’re trying to rent out to.
  • Target your marketing efforts : Similarly, for marketing and advertising your listing, you need to focus on the platforms where your target guests are and use copy that will appeal to them.

Pros and Cons of Airbnb Market Research and Analysis

Now that we have the Airbnb market research and analysis simplified, it’s important to know what advantages and disadvantages this brings to short-term rental property investors:

Airbnb Market Research and Analysis Pros

The main pros include:

  • Data-driven decisions : Real estate investing is a numbers business. You cannot make profitable decisions without having the right numbers, or at least the chances for success are too slim.
  • Low-risk investments : As you already know the market-average ROI figures, your investment is much less risky. You know what you can expect before even getting started.
  • Optimal ROI results : Conducting Airbnb market research and analysis allows you to choose the top location where a property will generate the best returns.
  • Competition outperformance : By finding out what property type to invest in and what visitors to cater to in the local market, you are already a few steps ahead of competitors who don’t use the best Airbnb market analysis tools.
  • Legal compliance : When you check out the Airbnb laws and regulations, you can avoid legal troubles and complications.

Airbnb Market Research and Analysis Cons

Some cons to consider include:

  • Time needed : Performing diligent vacation rental market research and analysis takes time. It requires a lot of data collection, analysis, and calculations. But you can solve this problem by getting access to the best tools, described below.
  • Cost : Rental data costs money, not to mention the time it takes to collect it and analyze it, and time is money in real estate investing. Once again, this challenge can be addressed by getting the right tools, many of which are free.
  • Tools required : Conducting quality research and analysis necessitates the use of tools. Otherwise, you cannot be as efficient and as successful as your competitors who use the right tools.

Best Airbnb Market Research Tools

While performing diligent Airbnb market research and analysis is a must for successful investments, it’s a very time-consuming and potentially expensive endeavor. As experienced investors testify, you need to spend a couple of months collecting qualitative and quantitative data, entering it into Excel spreadsheets, organizing it, cleaning it, and making calculations. Not to mention that manual Airbnb data collection and analysis are prone to human error which can quickly multiply across a spreadsheet.

Thus, you need to get access to the best Airbnb market research tools to be able to make smart and fast vacation rental investment decisions. We’ve reviewed the most popular Airbnb tools on the market and ranked the top ones for your convenience:

Awning Top Airbnb Markets and Airbnb Market Data

As described above, the Awning platform has two tools to help hosts with their Airbnb market research and analysis: The Top Airbnb Markets and the Airbnb Market Data. Together, these tools allow investors to find the best US cities for short-term rental properties, reflecting both nationwide market trends and each investor’s own unique situation.

The provided data includes all must-have Airbnb analytics, such as the ADR, occupancy, rental income, and property prices. All data comes from reliable sources and is verified. Moreover, access to this tool is completely free and unlimited, across the entire US market.

AirDNA MarketMinder

The AirDNA MarketMinder is considered one of the top Airbnb market research tools that combines both Airbnb and Vrbo data. A major drawback of this tool is that it doesn’t have the functionality to search for the best short-term rental markets. Instead, it allows investors to analyze the potential of locations that they have already selected using other sources.

The available analysis focuses on revenue, daily rates, and occupancy. The data is broken down by rental type and number of bedrooms and goes back 5 years. This allows investors to track the historical performance of a market, even before the Covid-19 pandemic.

Another disadvantage to keep in mind is the subscription price. The fee starts at $12/month for a single neighborhood or city and exceeds $299/month for the entire US market.

Mashvisor Market Finder

Another recent tool for researching and analyzing vacation rental markets is the Mashvisor Market Finder. When first launched, the Market Finder provides you with a list of the top 10 US cities for this investment strategy, based on the Mashmeter Score, rental rate, cap rate, or crime rate.

Next, the tool gives hosts the option to search for a market that meets their requirements using different filters such as the Mashmeter Score, school rankings, regulatory environment, home values, property type, monthly rental income range, occupancy rate range, and cap rate range. Then, investors can see Airbnb market analysis for each suggested market.

What sets the Mashvisor Market Finder apart from other Airbnb market research tools is the Airbnb cap rates data. However, access requires a paid subscription, with quarterly and annual plans ranging from $24.99/month to $119.99/month.

Rabbu Market Data

The Rabbu Market Data tool offers comprehensive market analysis by zip code, city, or county, with a lot of important data points. Nevertheless, it does not allow investors to search for the top locations, so it’s a good choice for those with some experience in the industry.

Rabbu provides both historical performance data (ADR, occupancy, revenue, and listings) and future projections. The latter includes many Airbnb data analytics like the daily rate, the occupancy rate, seasonalized revenue per available night, seasonalized monthly and annual revenue, active listings, and active hosts. There are different filters that investors can use to narrow down the analysis to the type of properties that they are mostly interested in, such as number of bedrooms, amenities, and number of reviews on the Airbnb platform.

Using the Rabbu Market Data tool is free.

AllTheRooms Market Overview

The Market Overview tool available on the AllTheRooms website helps investors analyze the performance of locations but not find the top cities for this strategy. They can see the expected average daily rate, occupancy rate, and monthly revenue as well as the available supply of Airbnb listings, broken down by rental type, property type, number of bedrooms, and amenities. There is both historical performance and future data.

Full access to this tool is paid and costs $19/month for 12 months of historical data and 1 month of future data and $49/month for 49 months of historical data and 6 months of future data.

PriceLabs Market Dashboard

Similar to the AirDNA MarketMinder, the PriceLabs Market Dashboard provides access to Airbnb and Vrbo data. The Airbnb market data analytics include estimated annual revenue, occupancy rate, ADR, number of active listings, number of bookings, and average length of stay.

PriceLabs allows investors to look at entire markets, professionally managed Airbnbs, and Airbnbs with 20+ reviews to see how vacation rental management and reviews by guests affect performance. However, hosts are not able to search for the top locations for short-term rentals with this platform.

The price of subscriptions to the PriceLabs tool starts at $9.99/month.

Now you know the four most important steps of the Airbnb market research and analysis: 1) Find a market; 2) Analyze the market rental data; 3) Study the legal regulations; and 4) Learn about the guests. Each of these steps brings its own value, which makes it an important part of the process. Meanwhile, manual research and analysis has become obsolete amid the recent growth in real estate technology. 

To analyze markets and make better investment decisions than your competition, you need access to the best Airbnb market tools. The Awning Top Markets tool and Airbnb Market Data tool, coupled with some free, publicly available resources, are able to meet the needs of all short-term rental property investors.

how to do market research for airbnb

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© 2022 Awning CRE, Inc. All rights reserved. Awning, Inc. is a licensed real estate broker in California (DRE# 02120175), Awning Brokerage Holdings is a licensed real estate broker in Florida collectively referred to herein as “Awning”.


Understanding Airbnb Market Research For Vacation Rental Hosts: A Guide To Success

Being an Airbnb host is more than merely renting out a property; it’s running a business, an Airbnb business. To stay ahead in this growing industry, it’s crucial to conduct market research consistently.

But how do you go about conducting this Airbnb market research, and how do you use it to ensure your vacation rental is a success?

how to do market research for airbnb

1. Importance Of Airbnb Market Research

Market research is the backbone of any successful business, and running your Airbnb is no different. Research provides hosts with a wealth of data that can be used to make informed decisions about pricing, occupancy, investors, and services.

This data can provide insights into what guests are looking for, whether it’s a short-term rental or a longer stay, allowing you to create an enticing listing that stands out from the crowd.

2. Understanding Your Market

You must first understand the specific markets you are targeting. Whether it’s a bustling city like San Diego or a tranquil countryside town, market research can reveal the nuances of these different locations.

Tools like the Airbnb calculator can help you get a better understanding of potential revenue based on average daily rates in your city, and the length of stay, whether a short-term rental or not.

3. Identifying Top Listings

Once you have a grasp on your market, take a look at the top listings in your area. These Airbnb listings will provide you with an idea of what guests in your city are looking for. Pay close attention to the amenities they offer.

Are these the best places to go? Do they have a hot tub? What about their pricing? Are their Airbnb nightly rates higher than the average in the city? This kind of data really matters.

4. Understanding Your Competitors

Direct competitors are other hosts who have similar listings to your Airbnb. Examining these other listings can provide a wealth of knowledge about how to position your property for success.

Look at their prices and daily rates, read their reviews, and see what they offer that makes them stand out.

5. Analyzing Seasonality

When you’re dealing with short-term rentals, seasonality is crucial. Peak season and low season can drastically affect your occupancy rate and monthly revenue.

A good Airbnb market research tool will allow you to view data for an entire year, giving you a more accurate picture of the seasonality in your area, all with a simple glance at your browser.

how to do market research for airbnb

6. Researching Demand

In addition to seasonality, you also need to research the demand for vacation rentals in your area and different markets. Are there any significant events that drive up demand? What is the average occupancy rate during these times?

By having a better understanding of airbnb demand, you can more accurately predict your potential revenue.

7. Pricing Your Property

After doing your market research, you should have a good idea of how to price your property. However, this isn’t a set-and-forget process. You’ll need to continually monitor your market to ensure your pricing remains competitive.

Using the Airbnb calculator can help you understand the potential cash return based on different pricing strategies, and manage your income.

8. Predicting Your Revenue

Predicting your Airbnb revenue is an important part of market research.

With the right tools and data, you can create a more accurate projection of your potential monthly revenue. This will not only help you manage your finances but also give investors a clearer picture of your business’s profitability.

9. Keeping An Eye On Trends

The world of Airbnb and short-term rentals is continually changing, and what worked yesterday might not work tomorrow, even in the best places. Regular market research will help you stay on top of these events and trends, ensuring your property remains competitive.

10. Utilizing Tools For Market Research

There are several tools available to help with your Airbnb market research. The Airbnb calculator, for example, is a great tool that allows you to input your property’s details and see estimated income, expenses, and cash returns.

Similarly, websites with a search bar feature can help you gather data about your competition and top listings in your market.

how to do market research for airbnb

11. Looking Beyond Your Immediate Market

While it’s crucial to conduct Airbnb market research within your immediate market, don’t limit yourself to just that.

Look at listings in other cities, especially those known as the best places for vacation rentals. Their successful strategies can potentially be applied to your market, providing you with additional insights.

12. Analyzing Review Data

Reviews on Airbnb listings aren’t just for potential guests; they’re goldmines of information for hosts too.

Through a careful analysis of reviews, you can identify what guests loved or disliked about their stay, for example. This feedback can guide improvements to your property or services and potentially increase your occupancy rate.

13. Using A Dynamic Pricing Tool

Dynamic pricing tools adjust your nightly rates based on a variety of factors including demand, events in the city, your cash return, and even the weather. By employing these tools in tandem with your Airbnb market research, you can optimize your revenue while remaining competitive.

14. Monitoring Regulatory Changes

Laws and regulations impacting short-term rentals can change. Make sure you are up-to-date with the regulations in your city and any changes that may occur.

Not only can these changes affect your Airbnb business, but they can also influence the market as a whole, in various cities.

15. Keeping Tabs On Direct Competitors

While general market research is essential, honing in on your direct competitors can provide more specific insights. Regularly monitor their Airbnb listings, noting any changes in their pricing, availability, or services offered. This can help you anticipate market moves and stay one step ahead.

how to do market research for airbnb

16. Experimenting With Your Listings

Airbnb market research isn’t just about collecting data; it’s also about taking action.

For example, once you’ve gathered data, consider testing changes to your listing, such as adjusting your price or adding new amenities. Then, monitor the impact of these changes on your booking rate and reviews.

17. Gathering Data On Guest Preferences

Airbnb market research isn’t just about your competition and market trends. It’s also essential to gather data about your potential guests.

What demographics are they part of? What do they look for in a vacation rental? What cities do they want to see? The more you know about your guests, the better you can cater to their needs and make a difference in their trip.

how to do market research for airbnb

18. Calculating Profitability

Remember, revenue is only one side of the equation. To truly understand your profitability, you need to factor in all expenses associated with your property.

This includes cleaning fees, maintenance costs, and Airbnb fees. By calculating these expenses, you can make an informed decision on pricing and the overall profitability of your property.

19. Understanding Real Estate Trends

As a vacation rental host, you’re also a real estate investor. Therefore, it’s essential to keep an eye on broader real estate trends, and not simply Airbnb prices.

Are property prices in your area rising or falling? Is it a buyer’s or seller’s market? This information can influence your long-term decisions about buying, selling, or renting properties.

20. Incorporating Professional Expertise

Consider seeking the advice of professionals in the real estate or hospitality industry with your Airbnb listing. While doing your own research is crucial, their expert insights and real-world experience and properties can complement your findings and help you navigate your market more effectively.

how to do market research for airbnb

21. Evaluating Your Unique Selling Proposition

While conducting Airbnb market research, it’s crucial to identify your property’s unique selling proposition (USP).

Whether it’s a stunning view, a prime location or neighborhood, or unique amenities, your USP should be at the forefront of your listing to make it stand out amongst competitors.

22. Ensuring Accurate Listing Descriptions

After researching other listings in your market, make sure your listing description accurately reflects your property and its amenities. Misrepresenting or omitting information may result in negative reviews, affecting your overall rating and search ranking.

23. Leveraging Social Media Insights

While Airbnb’s platform offers a plethora of information about the short-term rental market, there is another invaluable resource for market research that should not be overlooked: social media. Platforms like Instagram, Facebook, and Twitter have become hubs of real-time consumer behavior and preference data.

By regularly following and engaging with travel-focused accounts, you can gather critical insights into emerging market trends. Hashtags can be especially helpful in identifying trending vacation destinations or popular amenities in any Airbnb. Pay attention to the types of properties and features that attract the most engagement (likes, shares, comments) on these platforms.

Moreover, social media platforms also provide an open forum for Airbnb guests to voice their complaints or praises about their vacation rental experiences. Monitoring these conversations can provide you with firsthand knowledge about what guests are truly seeking in a vacation rental. You can use these insights to improve your offering and enhance the overall guest experience.

24. Tracking Macro-Trends

While micro-level trends can provide insights about your specific market, macro-trends can also influence your Airbnb business. Consider global factors such as changes in travel patterns, economic shifts, or technological advancements which can affect your short-term rental operation.

25. Understanding The Importance Of Visual Appeal

Quality photos are critical for attracting guests to your Airbnb properties. Market research can help you understand what kind of photos appeal to potential guests. Are they drawn to cozy, well-lit spaces, or do they prefer minimalist, modern designs? Tailoring your property’s visual appeal can increase its attractiveness.

how to do market research for airbnb

26. Surveying Your Guests

Your guests are one of your most valuable resources for market research. They have first-hand experience with your property, and their feedback can provide you with direct insights into what you’re doing right and where there’s room for improvement.

One effective method of obtaining this feedback is through post-stay surveys. After your guests’ stay, consider sending a survey asking for their thoughts on their experience. Ask about various aspects of their stay, such as their check-in experience, the cleanliness of the property, the amenities offered, and the overall value they felt they received.

Moreover, ask them about what they wished your property had, if anything. This question can provide you with ideas for improvements or additions to your property that you may not have thought of otherwise.

By engaging your guests in this way, you’re not only showing them that you value their opinion, but you’re also gathering invaluable data that can help you increase your future booking rates.

27. Considering Environmental Factors

Understanding your property’s environment is crucial. If your property is located near a beach, how does the peak beach season impact your occupancy rates? What about properties near ski resorts? Understanding these environmental factors can inform your pricing and marketing strategy.

28. Studying The First Page Of Listings

Take a closer look at the listings on the first page of search results for your market. These are likely the properties with the highest bookings and ratings. Study their strategies, from pricing to marketing, to learn what makes them successful.

29. Tracking Metrics Over Time

Market research is not a one-time activity. Track your key metrics over time, including occupancy rate, monthly revenue, and guest reviews, to identify trends and adjust your strategy accordingly.

30. Keeping An Eye On New Market Entrants

The vacation rental market is dynamic and profitable, with new listings constantly popping up. As a host, it’s crucial to always stay on top of these changes and new market entrants, such as rental arbitrage . Fresh listings in your specific market can potentially become direct competitors, which can significantly affect your occupancy rates and overall business.

New listings often aim to gain market share quickly, and they may do so by implementing aggressive strategies such as lower prices, special offers, or unique services. Being aware of these new competitors from the get-go allows you to react swiftly and appropriately to the changing market landscape.

For instance, if a new listing is offering similar amenities to yours at a lower price, you may need to reconsider your pricing strategy. Alternatively, if a new competitor offers a unique amenity that appears to be attracting a lot of interest, you might consider whether it’s feasible to introduce something similar in your property.

Moreover, tracking new listings isn’t just about identifying competition and making money; it’s also about spotting opportunities to make your investment more profitable. New hosts may take some time to build up their reviews, and during this time, you can emphasize your property’s tried-and-tested status to appeal to guests who may be wary of staying at an unreviewed property.

Market research is a crucial component of running a successful Airbnb business. From understanding your specific market to keeping an eye on trends, every piece of data you gather brings you one step closer to success.

By using tools like the Airbnb calculator and constantly checking your competition, you’re not just renting out a house; you’re building a profitable business. It’s about making the most money out of your investment property and delivering a great experience to your guests.

So, whether you’re new to the world of vacation rentals or a seasoned pro, remember that conducting market research is not a one-time task. It’s a continuous process that will require real-world experience, adaptability, and a keen eye for detail.

With your newfound understanding of Airbnb market research, it’s time to implement your knowledge and strategies. But why go it alone when you can have a trusted, high-performance ally on your side?

Let us introduce you to iGMS, a vacation rental management software built for hosts like you. Designed to transform your hosting experience, iGMS offers a suite of tools and functionalities that simplify and streamline all aspects of vacation rental management. Some of these tools can help you in:

  • Managing multiple accounts and listings on the top OTAs from a single interface .
  • Synchronizing reservations across multiple platforms to eliminate double bookings .
  • Using the unified inbox to organize your messages into a single feed to ensure prompt replies.
  • Using automated templates and triggered messaging to improve communication.
  • Automating the process of guest review send-outs .
  • Creating and coordinating cleaning tasks with live tracking to completion.
About The Author Ashley Lipman is an award-winning writer and content marketing specialist who discovered her passion for providing knowledge to readers worldwide on topics closest to her heart—all things digital. Since her first high school award in Creative Writing, she continues to deliver awesome content through various niches touching the digital sphere.

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Airbnb Statistics

Last Updated: November 21, 2023

Highlights. Airbnb statistics indicate the travel booking site has recovered from the previous year’s losses with a 638% increase in net income throughout 2022.

  • Corporate revenue for the second quarter of 2023 totaled $2.484 billion.
  • Airbnb is valued at $74.6 billion as of October 2023, up 45.9% since the start of the year.
  • The average host earned $14,000 in 2022.
  • Over 60% of U.S. hosts say they rent out their primary home while they’re on vacation.
  • Over 4 million hosts have 7 million global listings on Airbnb.

Line Graph: Airbnb Quarterly Revenue (in millions), from 2019Q1 ($839), 19Q2 ($1,214), 19Q3 ($1,646), 19Q4 ($1,107), 20Q1 ($842), 20Q2 ($335), 20Q3 ($1,342), 20Q4 ($859), 21Q1 ($887), 21Q2 ($1,335), 21Q3 ($2,237), 21Q4 ($1,532), 22Q1 ($1,509), 22Q2 ($2,104), 22Q3 ($2,884), 22Q4 ($1,902), 23Q1 ($1,818), 23Q2 ($2,484)

For further context, see our report on the Vacation Rental Industry .

Airbnb Booking Statistics

Since its founding in 2007, Airbnb has expanded to over 220 countries as part of the “sharing economy.”

  • Airbnb broke its own booking record in the second quarter of 2022 when guests collectively booked 115.1 million stays (including Experiences).
  • The gross booking value for 2022 Q2 was $19.1 billion.
  • Bookings in 2023 Q2 were up 13% year-over-year (YoY).
  • Airbnb users have booked over 1.5 billion stays worldwide.
  • The average Airbnb rental in the U.S. is booked 21 nights per month.
  • There are more than 4 million hosts worldwide.
  • 45% of bookings on Airbnb are for at least one (1) week.
  • Airbnb includes listings from over 100,000 cities and towns.
  • The average U.S. Airbnb occupancy rate was 48% in 2021.

Bar Graph: Airbnb Quarterly Net Income (in millions), 2019 Q1 (-$292), 19Q2 (-$297), 19Q3 ($267), 19Q4 (-$352), 20Q1 (-$341), 20Q2 (-$576), 20Q3 ($219), 20Q4 (-$3,888), 21Q1 (-$1,172), 21Q2 (-$68), 21Q3 ($834), 21Q4 ($55), 22Q1 (-$19), 22Q2 ($379), 22Q3 ($1,214), 22Q4 ($319), 23Q1 ($117), and 23Q2 ($650)

Airbnb Business Statistics

Airbnb’s biggest competitor in online travel booking is Airbnb was first incorporated in 2008 as AirBed & Breakfast, Inc. (changed to Airbnb, Inc. in 2010).

  • ​​Airbnb’s 2022 second-quarter revenue totaled $2,484,000,000.
  • The company’s quarterly revenue increased 36.6% from 2023 Q1 to Q2 and 18.1% YoY.
  • Competitor Booking Holdings (, KAYAK,, etc.) surpassed Airbnb’s 2023 Q2 revenue by 120%.
  • Expedia Group’s (Vrbo,, Orbitz, etc.) revenue surpassed Airbnb’s by 35.2%.
  • The company has 880,510 followers on X (formally Twitter), which is more than four (4) times as many as has.
  • Airbnb works with 11,000 third-party partners.
  • 400,000 companies directly engage with Airbnb to manage travel for their employees.
  • Airbnb has over 400 agreements with local and national governments to automate the collection of tourism taxes, collecting over $2 billion in tourism-related taxes through these agreements.

Airbnb Guest Statistics

More guests are booking longer stays, indicating a market among “digital nomads” (i.e., remote workers who travel indefinitely).

  • Guests were 18.4% more likely to stay in their Airbnb for at least a week in 2021 compared to 2019.
  • Over one (1) year, 100,000 guests stayed in the same Airbnb for over three (3) months.
  • 54% of Airbnb guests are female.
  • 36% of guests are between the ages of 25 and 34.
  • 15% are between 18 and 24; 13% are aged 55 and older.
  • 95% of surveyed guests choose Airbnb for ease and security of payment.
  • 86% say the location of their Airbnb is more convenient than a hotel.
  • 77% want to live like locals.
  • 64% agree that home-sharing is more ecological or environmentally friendly.
  • 43% indicate functionality is their top valued amenity.

Pie Chart: Airbnb Booking Guest Age Groups

Airbnb Host Statistics

Women are more likely to register as hosts and are consistently rated as the best hosts on Airbnb. 

  • There are 4 million hosts worldwide.
  • 85% of hosts are located outside the United States.
  • Globally, 56% of hosts are women.
  • Nationwide, the average host earns $122 per night for a private room with up to two (2) guests.
  • For entire units with up to four (4) guests, hosts earn an average of $309 per night.
  • The average host earns $14,000 annually.
  • Over 60% of hosts in the U.S. say they rent out their primary residence while they’re on vacation.
  • Average annual earnings among hosts have increased 85% since 2019.
  • Hosts have collectively earned over $180 billion.
  • 22% of hosts indicate that they chose to host after first being an Airbnb guest.
  • The fastest-growing host demographic is seniors, with over 400,000 senior hosts.
  • Hosts can insure their property for up to $3 million through the AirCover program.

Airbnb Plus Program

“The Airbnb Plus program will end on 6 November 2023. We will soon announce new upgrades to help your listing stand out to guests. Existing guest reservations will not be impacted by the program ending.” – Airbnb 

  • Airbnb’s Plus Program identifies exceptional Hosts. To qualify, Hosts and properties have to maintain several status requirements and pass a 100-point in-person inspection.
  • Airbnb Plus properties have to be verified in person.
  • In addition to maintaining the Airbnb Hospitality Standards, Plus Hosts must have a minimum 4.8 rating.
  • Listings must accept 95% of bookings in the previous 12 months.
  • No reservations canceled by the Host (except under extenuating circumstances) over the past year.
  • Plus listings must either be “Entire Home” listings or private bedrooms with an attached private bathroom.
  • In 2020, over 26,000 Plus homes were available in 41 cities around the world.
  • Plus homes earned up to 400% more than standard listings.

Airbnb Superhosts

The Airbnb Superhost program started in 2014 to celebrate the most experienced and top-rated hosts on the platform.

  • There are one (1) million Superhosts in over 200 countries and territories worldwide.
  • Superhosts earned a collective $23 billion between October 2021 and September 2022. 
  • The typical Superhost earns 64% more than a regular Airbnb host. 
  • 34% of Airbnb hosts in the U.S. are Superhosts.
  • 75% of Superhost properties are entire homes; 20% are private rooms.
  • To qualify, Superhosts must maintain a 4.8 rating or higher over the past year.
  • Superhosts must have hosted at least 10 stays in the past year, cancel less than 1% of the time, and respond to 90% of booking messages within 24 hours.

Airbnb Experiences

Experiences are host-led activities. Travel restrictions in 2020 prompted the launch of Online Experiences as a way for hosts to lead activities virtually.

  • Hosts of “Experiences” earn an average of $10,000 per year.
  • Online Experiences offer tours and classes similar to the Experiences program, except all events are hosted via Zoom.
  • 56% of hosts use Online Experiences to supplement their income from a part-time or full-time job.
  • More than 80% of Online Experience guests attend from outside the host’s home country.
  • Over the holidays, Airbnb partnered with Santa Visits USA to launch a special initiative offering Online Experiences with Santa, including Virtual Visit and Story Time with Santa, Sign Language Santa, and Mama Claus Holiday Joy.

Airbnb Home-Sharing Trends

Hosts and commercial operators listing multiple properties for rent represent one of Airbnb’s fastest-growing segments.

  • Eco-friendly stays increased 141% from 2018 to 2019.
  • Hosts with 10 or more properties generate a quarter of all multi-host revenue.
  • 81% of Airbnb’s revenue in 2017 came from whole-unit rentals where the owner was not present during the guest’s stay.
  • Revenue growth for whole-unit rentals increased by an average of 76% from 2017 to 2020. 
  • Nights booked at unique properties increased by 50%  between 2019 and 2021.
  • Over 2.5 million nights were booked for tiny homes in 2021, earning hosts over $195 million collectively.

Regulating Airbnb

In 2019, Airbnb became heavily regulated, restricted or made illegal altogether in many cities where it previously had very high numbers of listings and bookings.

  • Airbnb suspended 6,600 guest users in 2021 as a result of its temporary party ban; Airbnb codified a permanent ban in July 2022.
  • Due to increasing regulations, growth is slow or not occurring at all in some of Airbnb’s former top cities.
  • Between 2017 and 2019, listings in New York City fell 7.1% and listings in San Francisco fell 16.7%.
  • In 2015, over 10% of all active listings were in New York City, London, and Paris.
  • In early 2020, less than 3% of all active listings were in New York City, London, and Paris.

Airbnb Corporate Statistics

Airbnb  had to eliminate more than 25% of its workforce as a result of COVID-19 travel restrictions. While the company has since reestablished many positions, it still doesn’t have as many employees as it did at the end of 2019.

  • 6,811 employees work for Airbnb in 29 cities worldwide.
  • Airbnb hired 679 new employees in 2021, increasing their workforce 11.1% YoY.
  • 48.3% of employees are women in the binary†; women fill 43.6% of leadership roles.
  • Airbnb employs 1,900 engineers; 29.0% of them are women.
  • 15.0% of Airbnb’s US-based employees are from underrepresented populations.
  • Airbnb scored 100/100 on the American Association of People with Disabilities’ Disability Equality Index® in 2021 and 2022.
  • 1,000 employees surveyed gave Airbnb 3.8 out of 5 stars when scoring career opportunities, salary/benefits, management, culture/values, and work/life balance.
  • 75% of Airbnb employees felt their pay was fair.

† Airbnb collected binary-only gender data until 2020; 2021 employee surveys allow respondents to self-identify their gender.

* Underrepresented Minority *** Insufficient data

Airbnb Lobbying Statistics

Airbnb has a vested interest in public policy, such as legislation regarding travel, housing, and corporate taxes

  • In 2023, as of the third fiscal quarter, Airbnb spent $820,000 on lobbying. 
  • In 2022, Airbnb spent $1.03 million on federal lobbying.
  • Airbnb’s lobbying expenditures in 2022 surpass 2021’s average quarterly expenditures by 6.1%.
  • Airbnb works with three (3) lobbying firms that focus mainly on public policy as it relates to taxes, telecommunications, and travel & tourism.
  • In 2023, Airbnb lobbyists have focused on six (6) government bodies, including the Department of Housing & Urban Development and the Consumer Product Safety Commission.

Airbnb & COVID-19

Airbnb’s revenue took a massive hit from quarantines and lockdowns throughout 2020. As a result, the company postponed its initial public offering (IPO).

  • In the second fiscal quarter of 2022, there were 50% more active listings for non-urban destinations than there were in 2019 Q2.
  • Airbnb’s valuation decreased 48.6%, from $35 billion to $18 billion, from January to May 2020.
  • Airbnb may have lost up to 54% of its overall revenue due to the novel coronavirus.
  • Booking rates dipped by 85% at one point in 2020.
  • Optimistic investors, contributed an additional* $2 billion to the company’s IPO fund after March of 2020.
  • In August of 2020, Airbnb enacted a global ban on gatherings of more than 16 people at Airbnb listed properties “until further notice”.
  • The $1 billion-dollar Airbnb Host Endowment launched in October 2020 with the purpose of providing emergency funds, educational grants, and other support to hosts and their families.

* In addition to the $6.4 billion previously raised across 22 funding rounds.

  • Airbnb News
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  • Twitter, Airbnb
  • OpenSecrets, Client Profile: Airbnb Inc
  • Airbnb, Hosting
  • Airbnb Help Center
  • Reuters, Airbnb Valuation Surges Past 100 Billion in Biggest US IPO of 2020

Useful AirBnB Related Links

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how to do market research for airbnb

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News & Insights


Investors Heavily Search Airbnb, Inc. (ABNB): Here is What You Need to Know

April 12, 2024 — 09:00 am EDT

Written by Zacks Equity Research for Zacks  ->

Airbnb, Inc. (ABNB) is one of the stocks most watched by visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this company have returned -0.6%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Internet - Content industry, which Airbnb falls in, has lost 0.3%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate Revisions

Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Airbnb is expected to post earnings of $0.29 per share for the current quarter, representing a year-over-year change of +61.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.3%.

For the current fiscal year, the consensus earnings estimate of $4.63 points to a change of -36.1% from the prior year. Over the last 30 days, this estimate has changed -0.6%.

For the next fiscal year, the consensus earnings estimate of $5.41 indicates a change of +16.7% from what Airbnb is expected to report a year ago. Over the past month, the estimate has changed +0.9%.

Having a strong externally audited track record , our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates , Airbnb is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth Forecast

While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Airbnb, the consensus sales estimate of $2.06 billion for the current quarter points to a year-over-year change of +13.5%. The $11.08 billion and $12.39 billion estimates for the current and next fiscal years indicate changes of +11.7% and +11.9%, respectively.

Last Reported Results and Surprise History

Airbnb reported revenues of $2.22 billion in the last reported quarter, representing a year-over-year change of +16.6%. EPS of $0.76 for the same period compares with $0.48 a year ago.

Compared to the Zacks Consensus Estimate of $2.16 billion, the reported revenues represent a surprise of +2.57%. The EPS surprise was +13.43%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Airbnb is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom Line

The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Airbnb. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

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Does ‘virtue signaling’ pay off for entrepreneurs? We studied 81,799 Airbnb listings to find out

how to do market research for airbnb

Assistant Professor of Management, Texas State University

how to do market research for airbnb

Assistant Professor Of Management, University of North Texas

how to do market research for airbnb

Associate Professor of Management, University of North Texas

Disclosure statement

The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

Texas State University provides funding as a member of The Conversation US.

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The next time you’re searching through Airbnb listings, you may find there’s more to consider than just amenities and price.

To stand out from the competition , some Airbnb hosts tout their personal values – such as integrity, empathy and conscientiousness – in listings for their properties. This sort of display has been called “virtue signaling.” Although the phrase can be derisive, we’re using it here as a neutral description of a business tactic: Virtue signaling happens when a business entity communicates to a target audience that it has a purpose beyond providing a service for profit.

Virtue signaling isn’t a new phenomenon , but it’s still a challenging one for entrepreneurs to navigate. After all, there’s a thin line between having a meaningful dialogue about values and telling customers what they want to hear. Prior research on business and virtue signaling is largely mixed , and scholars have mostly focused on how investors – not consumers – respond to it .

As professors who study entrepreneurship , we wanted to better understand how consumers respond to virtue language – specifically, whether it makes them willing to pay more in the sharing economy. So we examined the language used in more than 80,000 Airbnb listings. We found that virtue signaling does move people to pay a premium – but only to a degree.

Virtue signaling in the sharing economy

Airbnb is the largest accommodations provider in the sharing economy, with more than 2 million active U.S. listings. Hosts – or Airbnb tourism entrepreneurs , as the company likes to describe them – list their private rooms, apartments or full houses with descriptions about the property for guests to rent.

Airbnb provides hosts with a smart-pricing tool that calculates a rental price per night based on things such as a property’s location and amenities. However, hosts can charge more than the Airbnb pricing tool recommends. To persuade guests to pay a premium for their rental , hosts often provide additional, more personal information in their pitch about the property.

To understand whether this pays off, we analyzed 81,799 Airbnb listing descriptions in 12 cities across the United States. We calculated the percentage of virtue language using word lists that capture six dimensions of virtue: conscientiousness, courage, empathy, integrity, warmth and zeal . For example, hosts may describe their space as “friendly” or “neighborly” to emphasize warmth, or comment on their “supportive” or “compassionate” nature to show empathy with potential guests.

Our findings, published in one of the leading entrepreneurship journals, reveal that the price that hosts can demand for their Airbnb is influenced by the amount of virtue signaling in their listing.

We found that lower levels of virtue signaling in Airbnb listings help hosts secure more bookings at a price premium, while too much hurts business. Specifically, a host who uses a little bit of virtue language earns an average of US$1,098 more than the average host in our sample each year. At the same time, excessive virtue language results in a loss of more than US$4,964.

So why are people less willing to pay a premium to the Airbnb hosts who espouse their virtues the most?

We think it comes down to trust. Consumers view a little bit of virtue language as reasonable and trustworthy. Higher levels of virtue signaling, however, can come across as dishonest. We found support for this idea in a follow-up survey experiment involving almost 500 participants. In this experiment, we found that Airbnb listings with a lot of virtue language were more likely to be perceived as dishonest by study participants.

As entrepreneurs grapple with how to communicate their values and beliefs to consumers, our research supports that communicating a modest amount of virtue can boost performance with consumers.

What about Airbnb Superhosts?

Perhaps the most important status symbol on Airbnb is the Superhost badge , which hosts earn over time based on their overall rating, response rate and other quality metrics. The badge attests to a host’s good reputation and is prominently featured on property listings.

Our findings show that the effect of virtue signaling is stronger for Airbnb Superhosts. In other words, a little bit of virtue language paid off more significantly for Superhosts, but excessive virtue signaling hurt them more.

These findings show that customers react substantially differently to virtue signaling by Airbnb Superhosts and illustrate that such hosts should be extra careful with such language in their listings.

Navigating the political minefield

Airbnb hosts, like other entrepreneurs, would also be wise to consider the political context they’re operating in. Research in political psychology has shown that conservatives and liberals differ when making value-laden decisions.

Our results show that hosts with listings in conservative-leaning counties experience stronger reactions to virtue signaling from consumers. We suspect this is because conservatives think overstating one’s ethical nature is dishonest, while liberals perceive it to be a function of the business environment in which Airbnb hosts compete. These findings illustrate that entrepreneurs should be extra careful using virtue language in more conservative counties.

Understanding how consumers respond to displays of values is important, especially in the sharing economy. Our research indicates that when it comes to public displays of virtue, a little goes a long way.

  • Advertising
  • Hospitality
  • Entrepreneurs
  • Sharing economy
  • Entrepreneurship
  • Virtue signalling

how to do market research for airbnb

Deputy Social Media Producer

how to do market research for airbnb

Research Fellow /Senior Research Fellow – Implementation Science

how to do market research for airbnb

Associate Professor, Occupational Therapy

how to do market research for airbnb


how to do market research for airbnb

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