Comfort, security and affordability are the three main factors to consider to order a successful Airbnb company.
Airbnb, as in “Air Bed and Breakfast,” is a service that allows property owners to rent out their spaces to travellers looking for a place to stay. Travellers can rent a space for multiple people to share, a shared space with private rooms, or the entire property for themselves.
Speaking on MoneyMovesJa with Kalilah Reynolds, Airbnb owner Fabian Littlejohn said starting in the business is not as complicated as some people think.
Littlejohn, who has been in the business for six years, said that comfort is a key to ensuring customers enjoy their stay and are eager to come back or recommend to someone else.
“If you’re trying to do a new Airbnb, do not skimp on the accessories. Make sure you have a nice counter, a nice bed,” he said.
He said Airbnb owners should keep their likes in mind when designing the space. Add elements that show that you are thinking of the guest and sets you are from other locations.
He added that catering to the customer’s need for security is also essential.
“I’ve had customers ask me for a video of the area… and if i have to video the surroundings I will,” he said.
He explained that Jamaica’s reputation in overseas markets is not always the best and clients want to know that they will be safe and are not being scammed.
The main thing, however, that impacts the success of an Airbnb business is the affordability of the listing.
Littlejohn said that not every Airbnb can compete on price because at the end of the day, it is a business and that business has to be profitable.
He said that there are some hidden charges that owners must consider when setting their listing price; chief among them is the cost of electricity.
He noted that electricity costs stack up quickly, especially if guests book longer-term stays.
For his rental space, Littlejohn explained that, depending on the length of the stay, he sometimes absorbs the cost of electricity.
“If someone is staying 3-4 days then I’ll foot that bill. But if their doing like two weeks I let them cover it,” he said.
He said that the average cost of the electricity is incorporated as additional fees into the final booking cost that the customer pays.
Another trick the Airbnb owner shared was switching to Jamaica Public Services prepaid plan. The plan allows customers to purchase a specific amount of electricity, for example, $5000 worth.
He said that this helps reign in electricity use and helps him to determine how to price.
He said the Airbnb business is very lucrative if owners are willing to put in the word to establish a comfortable and secure spot.
