First take a look at this data with me:
In each color, you see a different apartment type: 1 bedroom, 2 bedroom and 3 bedroom. Then we’ve plotted the average price per night across the y-axis and the # of guests accommodated by the apartment on the x-axis. We find that increasing the number of guests accommodated by your apartment by 2 guests increases price by 10–30%+. For example, in a 3-bedroom home, increasing the number of guests accommodated from 5 to 7, increases price from $289 to $370.
This makes perfect sense when you consider how we travel and search AirBnB. AirBnB users are often traveling with larger families or groups of friends and looking to house everyone under one roof. The first step in their search is to filter apartments by the number of guests. With a lower accommodation number, you are seen less often. Guests are also doing the simple division to determine each friend’s share of the cost. The “per person” rate matters.
This is a real problem for hosts
To give you some idea of the scale, in Manhattan and Brooklyn alone, there are 3,135 entire home, 1-bedroom listings on AirBnB that claim they can only accommodate 2 people. There are an additional 1,277 entire home, 2-bedrooms that only accommodate 4 people.
It’s difficult to believe that there isn’t some additional room in their apartments— a couch, a bit of floor space. By simply accommodating 2 additional guests, those ~4,000 hosts could generate an additional $1M in revenue, assuming they host 10 nights per year.
This is a simple fix
The easiest option is to increase the number of people accommodated on your listing page right now and purchase a Queen-size air mattress.
This queen size auto-inflating beauty costs $120 and can pay for itself in a single guest stay. It’s insured for a year. I’ve slept on one for two weeks and loved it.
Get more out of your rental with Happy Host
This is one of the insights we’ve discovered by working with New York hosts. If you are in the New York area and interested in AirBnB’ing your apartment with none of the work, e-mail me at email@example.com.