Quite some time has passed, since Airbnb was calling itself a startup. Offering airbeds and competing with couchsurfer.com, while today it’s value is estimated at $30 billion.
The reasons behind Airbnb’s business jump are due to several intertwining factors. From co-creating the shared service economy, to utilizing Airbnb’s global marketing strategy and global SEO strategy to its fullest potential. A key player in the company’s expansion is certainly the spreading out of its services to all kinds-of property: private apartments, houses, manors, tree houses, boats and even castles.
International SEO by the Book
A core factor of the company’s success is Airbnb’s international marketing strategy and the hard work from their international SEO experts. The company would not be able to conquer the top ecommerce markets without properly adjusting its geo-targeting settings for each country on the Airbnb global website.
This includes international SEO Hreflang tags and using different languages depending on the searched destination. Another great Airbnb localization strategy is how they handled the Chinese market. The company recognized the country’s potential as one of Airbnb’s most profitable locations to market. They opted to market through the Chinese Airbnb translation – “Aibiying” (爱彼迎), “welcome each other with love” to appeal better to the local audience.
Airbnb’s international strategy is centered around cooperation between local partners and regulators. This way the company enhances its strongest marketing tool – referrals.
Check if You Live in the Most Profitable City for Airbnb
Do you think that the biggest Airbnb cities are also the most profitable ones? Let’s check the best cities to Airbnb.
Airbnb has created a startup support system with companies like Airdna, Guesty and BeyondPricing which help hosts to improve services and expand their business and guests to share their experiences and compare offers.
With the help of data from Airdna, GFluence created a table of 25 cities from around the world ranking them by return on investment (ROI) when renting property on Airbnb. Aridna is able to recognize high yielding real estate investment opportunities by analyzing the occupancy, nightly rate, and revenue.
How Did We Get the Airbnb Stats by City?
Among the cities with the highest number of available listings around the world we chose the above 25 cities. With the help of Numbeo we calculated the average monthly rent for 1-bedroom apartments. Airbnb ROI was calculated comparing the highest 10% revenue generating 1-bedroom apartments in every city with the average 1-bedroom apartment rent price.
What Makes an Airbnb Most Profitable City?
The above chart shows that the leading city is Barcelona, currently having a 278% ROI. It’s no surprise that cities on the chart are popular tourist destinations like Prague, Paris, Rio de Janeiro. At the same time cities on the chart like Los Angeles, Osaka and Berlin have an extremely high residency demand. People who have just moved to the city or are planning a short-term residence (exchange students, business opportunity seekers) often use Airbnb to find accommodation.
The profitability of the average rental depends a lot on the number of Airbnb rentals in a city. Bigger competition does not necessarily mean lower prices, especially not in the real-estate sector. Sooner or later hosts start to set prices on similar levels.
What’s Behind the Airbnb Barcelona, Spain Myth?
Barcelona’s Airbnb statistics have been jumping off the roof with each passing year. Currently he city has 17 369 listings, while an average night will cost you €84. City officials and inspection are keeping a close eye on Barcelona Airbnb apartments to make sure that legislation is being followed and no fraud is committed.
It makes sense that a traditional touristic city like Airbnb would prove as a most profitable investment. But why is not Paris higher on the chart? Did you know that more and more articles have declared Barcelona as a startup city? As big tech giants like Amazon and Airbnb have decided to set shop in the area, the local digital industry is experiencing a new revolution.
— Vayoo (@InfoVayoo) November 23, 2017
Regulators vs. Profit – Eternal Enemies?
At the same time there is a connection between regulation laws and the number of Airbnb listings. The better the regulation the more listings a city has. This way people get encouraged to become Airbnb hosts as business is more legalized, while before some were reluctant to make money in a legal grey-zone.
If you come from one of the top ecommerce countries it doesn’t necessarily mean you’ll succeed on Airbnb. Airbnb profit rates heavily depend on the right marketing approach and current housing demands around your neighborhood.
Got a product you believe has international appeal? This calls for the right international SEO strategy and global marketing plan. Get in touch with us and let’s make your brand known worldwide.
Feature image source: www.techcrunch.com