What is Airbnb superhost and how are superhosts becoming threat for the short-term rental platform

Airbnb Superhost meaning and how to become one

First things first, what is a superhost on Airbnb or what does superhost mean on Airbnb? The prestigious Airbnb Superhost accolade distinguishes the upper echelon of hosts on the platform, signifying their commitment to exceptional hospitality and service. These exceptional hosts are rewarded with increased visibility, heightened earning potential, and exclusive benefits. For guests seeking accommodations, a Superhost status signals a reliable, experienced host who consistently delivers high-quality stays.

To attain this esteemed designation, hosts must meet a stringent set of criteria, assessed quarterly over the preceding year.

These requirements include:

1. Completing a minimum of 10 trips or securing 3 reservations totaling at least 100 nights
2. Sustaining a 90% or greater response rate
3. Ensuring a cancellation rate below 1%, excluding extenuating circumstances
4. Achieving an average overall rating of 4.8 or higher, as determined by Airbnb guest reviews

Upon meeting these criteria by the designated assessment date, hosts are automatically granted Superhost status, and a badge is displayed on their listing. There is no need for hosts to submit an application or incur any fees for participation. Status updates are provided at the end of each assessment period.

As an Airbnb Superhost, you will enjoy a myriad of advantages, such as:

1. A yearly $100 Airbnb coupon, awarded for maintaining their status
2. An additional 20% referral bonus when introducing a new host to the platform
3. Prominent recognition on their listing, profile, promotional emails, and search filters
4. Access to a dedicated customer support line for expedited assistance
5. Exclusive perks and discounts from Airbnb’s partners

For guests, opting to book with a Airbnb Superhost guarantees a top-tier experience with a dependable host who is dedicated to excellent service, effective communication, and the assurance of clean, comfortable, and accurate accommodations. Superhosts are also unlikely to cancel reservations, barring extenuating circumstances.

As of December 2020, more than 1.2 million hosts had the Airbnb Superhost badge worldwide, constituting approximately 22% of all hosts on the platform. While achieving Airbnb Superhost status is undoubtedly challenging, it remains an attainable and rewarding goal for dedicated hosts.

How and why Airbnb superhosts are slowly becoming threat for the platform

In response to the escalating concerns of a multitude of Dallas citizens, local authorities are being urged to address the burgeoning Airbnb market in Dallas, which has been plaguing the city for several years. The proliferation of short-term rentals in residential neighborhoods has given rise to a multitude of issues, such as amplified noise levels, increased vehicular congestion, and a heightened crime rate.

Although the Dallas City Council has yet to deliberate on the possible implementation of an ordinance that would prohibit short-term rentals in the majority of the city’s residential areas, proprietors of Airbnb, VRBO, and comparable platforms continue to conduct business unhindered. The flourishing real estate market in both Dallas and the wider North Texas region is perceived as an advantageous opportunity by investors.

This has led to a steady augmentation in the quantity of short-term rental properties situated within the city’s boundaries, as well as a surge in the number of Dallas-based Airbnb superhosts. While these superhosts are entitled to an array of benefits, their burgeoning presence is gradually becoming a predicament for Airbnb itself, with repercussions now manifesting in the form of fluctuations in the company’s stock value.

According to a recent report by New York Post, Airbnb shares went down to $109.69 on Friday, which is 4.9% from the previous day. This happened after this week’s report by The Bear Cave, an investing blog, saying an increasingly savvy pool of professional hosts are replacing hotels and other booking sites as the latest competitive worry for the company.

“Airbnb’s top professional hosts are building out their own booking platforms and offering cheaper deals to cut out Airbnb, growing their own email lists and distribution and offering loyalty discounts to book off of Airbnb,” according to the report.

A short-term rental enterprise named Heirloom, which manages 300 properties across six cities, presents a distinctive lodging option in the form of tranquil southern townhomes located in Nashville. These accommodations, boasting eight bedrooms along with a rooftop grill and hot tub, are available for $2,266.96 between April 7 and April 9, approximately $125 less than the corresponding rate on Airbnb’s platform.

Professional property management firms like Heirloom contribute significantly to Airbnb’s revenue, constituting over a quarter of earnings, as per data from AirDNA, a research organization specializing in the short-term rental market. Although these property managers, who oversee listings on behalf of independent owners, represent a mere 1% of all Airbnb and Vrbo hosts, they are responsible for managing 23% of the available listings. Consequently, they generate 28% of the overall revenue, as revealed by AirDNA’s findings.

Although Airbnb is the most popular short-term rental platform in recent years and Airbnb superhosts are undeniable part of the whole Airbnb experience, the platform faces challenges and problems, both for hosts and guests. With the growing Airbnb popularity, guests are more frequently becoming victims of unexpected problems which further pushes the platform down. These are some of the most frequent problems guests face:

1. Lack of pricing transparency and consistency: Guests often struggle with unexpected fees, such as service fees, cleaning fees, and occupancy taxes. To prevent this, guests should check the total price before booking, use filters to narrow down options, and directly negotiate with hosts for discounts or waivers.
2. Last-minute reservation cancellations by hosts: This can leave guests without alternative accommodations and disrupt travel plans. To avoid this, guests should book with highly-rated hosts, have flexible cancellation policies, and maintain a backup plan.
3. Unpleasant surprises at rental properties: Guests may encounter issues ranging from inaccurate descriptions to safety hazards. To mitigate this, guests should thoroughly research listings, communicate with hosts, and promptly report any problems to the host or Airbnb.
4. Difficulties with check-in and check-out processes: Hosts’ varying check-in methods and strict timings can cause conflicts. Guests should familiarize themselves with check-in and check-out instructions, confirm arrangements with hosts, and respect hosts’ time and availability.
5. Limited support or recourse when issues arise: Airbnb’s Guest Refund Policy and Host Guarantee may not cover all scenarios or expenses. To prevent this, guests should understand these policies, review their travel insurance coverage, and cooperate with hosts or Airbnb in resolving disputes.

The company said it would be addressing these complaints, including making its fees more transparent in early 2023. Airbnb’s revenues are mainly derived from a 14% service fee that guests pay and a 3% fee that hosts pay. Those fees are what the professional managers are taking aim at.