Tina Villis


Christmas in July

For those of us in Southern Australia, July is generally the coldest month of winter, leading us to celebrate ‘Christmas in July’. These festivities emulate the atmosphere of the northern hemisphere winter. So that means hearty food like roasts, and warm drinks in front of fireplace. In that spirit we’d like to explore a ‘hot topic’, something that everyone is talking about world-wide, worth as much as $42billion, is captured in one word: AIRBNB.

Diamond Christmas Crackers
Airbnb; all it’s cracked up to be?

As many of you may have booked and stayed in a property advertised through Aribnb as a guest, or are thinking of using Airbnb to rent your property and become a host, I thought it was timely to discuss some of the opportunities and obstacles, as we ponder the question – is Airbnb all it is cracked up to be?

The word Airbnb is on everyone’s lips. Similar to Uber, Airbnb is part of the sharing economy, with the brand operating as a framework for those who actually possess the product. Airbnb simply facilitates contact between hosts and guests, although even this is changing. The undeniable truth however is how from the company’s humble beginnings it has continued to rampage across the holiday rental market, forcing the old hands to reconsider their operational models. It has spread so quickly that “Airbnb” has become a verb; people are saying “let’s Airbnb it!” When I talk to people about Australian Luxury Stays and explain that we provide short term holiday rental accommodation, they respond by saying “oh, you are Airbnb?”

Airbnb is still growing at a jaw-dropping rate at 100% year on year growth in Australia, leaving other major Online Travel Agencies like HomeAway well behind.

So what caveats should a potential AIRBNB HOST be considering?

  • The biggest issue is the limited ability to screen guests or in some cases, to even talk to them before they book. Yes, you can check guest reviews if there are any, or resort to searching social media for their footprint, but this is an unsatisfactory checking mechanism.
  • The massive growth of Airbnb equates to a saturated holiday rental market, which means that competition is rampant and occupancy rates lower.
  • Letting strangers into your home might not mesh with everyone; even if it sounds good on paper, the reality of the experience can be confronting.
  • Hope for the best, but prepare for the worst; a simple search reveals an abundance of Airbnb horror stories, however, these extremes aside, hosts must prepare for the inevitable over-crowding, cleanliness issues, unadvised parties and noise complaints from neighbours.
  • If you are reliant on an OTA such as Airbnb for your visibility, you are tied to their fate; you will want to keep an eye on relevant legislation and remain prepared for the wind to change.

 In turn what should an AIRBNB GUEST be considering?

  • There is always a danger online that what you see you might not get on arrival. A mild example might be a photo of a barbecue pictured in the listing not being present in reality. It doesn’t hurt to confirm with host.
  • Learn about your host before booking, and engage with them once you have. Courteous, effective communication should be your host’s first step to welcoming you for your stay.
  • Refund policies vary from listing to listing; for cancelling at short notice, you may be out of pocket even with extenuating circumstances.
  • There may be issues with an inexperienced host who has not considered safety precautions, for example, potential trips and slips, or the property lacking a fire extinguisher or fire blanket… or enough toilet paper for a full house.

The big thing to remember for both hosts and guests are the commissions charged by OTAs – as much as
5% to the host and 13% to the guest. 

The long term goal is the growth and encouragement of the #bookdirect movement, but of course not everyone has the facility and must rely on third-party listing sites. This will save you money whether a host or guest. As a host, your own website may be seriously worth considering. Guests of course are encouraged to do the research! Booking direct can make for significant savings, but also potentially a better accommodation experience as you interact with your prospective host.

At Australian Luxury Stays screening guests is one of our most important tasks; we encourage phone communication so there is the smoothest possible experience for both the guest and the owner, but we like to ensure that our guests are as comfortable as possible as well!

Meanwhile, the Airbnb band wagon is certainly trundling along despite the pitfalls. With over 100 million stays in 2017, it may be worth further investigating to decide if Airbnb is really all it is cracked up to be – for you.

If you are a property owner considering an Airbnb listing for potential income, we are happy to discuss this opportunity with you. Contact Australian Luxury Stays today!

Wishing you a Happy Christmas in July.

Warm Regards


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