Mysterious Advertising - Lodging Newsletter February 28, 2025

 

 

A property owner wondered, how come her listing sometimes appears easily on AirBnB and sometimes does not? Why can’t they just put me on the top so we both make money?

 

The answer is that AirBnB, VRBO, and other websites have different goals. Naturally, they want to make the most amount of profit. And to do that, they will promote which ever products sell fastest, at the highest prices, and with the most profit to them. Here are just a few of the ways they do it.

 

Personalization - If you, your friend, or your spouse all search the same location, why are all of you given different homes to look at?  Many reasons are listed below, but in particular, the website already has lots of data on each of you, and guesses what best to display in hopes you buy something. What you appear to want is not what your friend appears to want.

 

Self Limit- If you look at your own listing, later you may find it not so visible. The website knows you looked repeatedly, did not book (your own place), and has concluded you are not going to buy. They are better off to show you the competitors.

 

Map Space - Many searches use the map to find exact places within a location. But there are so many listings that showing a "push pin" for each would cover the map, so none are clickable. Instead, the software chooses a variety of homes. Then, when a viewer zooms into the map, more listings can appear, because outside listings fall off the screen.

 

Quality - Websites give preference to listings with high quality photos, written descriptions, and lower rates. And surely they track every property, every rate, occupancy, and how fast dates are reserved. If your manager doesn’t do these things, properties lose out.

 

Amenities - Website databases know every nook and cranny of every house. Does it have multiple TVs, super comfy furniture, luxurious mattresses, high speed internet, that hot tub or even a pool?

 

Reviews - While preference is given to good reviews, oddly new homes with few listings get a bump, so new owners will continue to advertise.

 

Rates - Here is the topic that homeowners hate. Advertising websites like high rates, but they must be correct. If too high, the home goes to the bottom of the list, because the website knows it won’t book much at those prices. Allow your manager to impose yield management every day of the year. If you demand a minimum rate, your income suffers.

 

Amazon - You might think of Amazon as the poster boy of excessive buyer manipulation, because they do prey on consumer weaknesses to sell products. In fact, Amazon’s methods are more straightforward. If you see featured products, it is because the seller paid a premium to be there. That advertisng "up-sell" has not come to vacation rental websites yet, but when it does homeowners will pay even more to try to win the advertising race, where not everyone can be a winner.

 

Owner Duties - After an owner has a "Full Stack" fully capable lodging manager hired, the are things that only owners can do. Add amenities, put in that hot tub, keep furniture and fixtures up to a high standard, authorize purchase of welcome snacks, install faster internet, pay the manager to install guest registration WiFi. But if you don’t invest, don’t expect the highest return.