Airbnb has landed in Dubai. Some nine years into its tenure as the world’s most innovative travel platform, Airbnb is still a relative newcomer to the glistening City of Gold. While there’s certainly no shortage of eager business travellers and sun-seeking tourists here (with Dubai welcoming some 15.79 Million 2017 alone), it remains a relatively untested ground for this travel giant. So in this blog, we ask whether Airbnb will flourish in the globe’s hottest travel destination.
All aboard – This is how Airbnb works
In the simplest sense, Airbnb connects travellers seeking a place to stay, with homeowners. Since its launch in 2008, there have been 1M nights booked globally, and today there are 4 million Airbnb properties listed in over 191 countries. Here’s how the process goes…
- A homeowner lists their property
- Visitors search for accommodation based on location, property type and booking dates.
- A visitor requests to stay at a property – the property owner either accepts or declines
- If accepted, the payment is placed in advance, and held by Airbnb
- Following the stay, both host and guest leave reviews about one another
- The payment is received by the homeowner following the visit, with a commission paid to Airbnb
The million-dirham question – Should Dubai property owners let through Airbnb?
Airbnb provides a wealth of advantages for the property owner, but so too are there disadvantages that must be considered in balance. Here’s our short, sharp overview of both…
Dubai property buyers are a natural fit with the world of short-term letting
Investors see Dubai as fertile ground for profiting from affluent travellers, with Dh285 billion invested in the Dubai property market in 2017 alone, representing 69,000 real estate transactions.
In addition to property investors, amongst this figure are many other buyer demographics, including jet-setting business people who travel to and from Dubai on a regular basis (who are also the exact type to let out their property when away from the city).
For both groups, given that the yield on short-term lets can be up to 50% higher than longer-term options, there’s certainly monetary impetus for taking Airbnb seriously.
Fast, easy, cheap – Generating property income may never have been more accessible
Getting started on Airbnb is incredibly fast and seriously cheap. Booking management is also a breeze, with Airbnb’s intuitive interface, and they handle the marketing on your behalf.
Competition is hotting up
While creating a listing can be a quick process, the growing competition amongst Dubai property owners means that descriptions must be written to grab attention, with professional staging and photography serving as a visual complement to the listing’s words.
Your profits can be made or broken upon your reputation
Glowing reviews can lead to a steady stream of bookings and the chance to increase your nightly asking price. On the flip side however, poor reviews, even only a few in succession, could immediately dent your reservations and indelibly limit your earning potential.
From rolling out a red carpet complete with guest house pack and personal meet and greet, to handling that middle-of-the-night emergency, our Airbnb management service can boost your property income by as much as 40%. And if you think that’s impressive, wait until you see what we do for your guest reviews.
Ready to find out? Find out how our Airbnb management works.