Corporate Stays vs Standard Airbnb Guests – Why Quality Matters
In the increasingly competitive landscape of short-term rentals, understanding the differences between corporate stays and standard Airbnb guests is crucial for landlords aiming to optimise their income. Choosing to cater to a specific demographic can significantly impact your revenue, stress levels, and property wear and tear. In this blog, we’ll delve into why prioritising quality over quantity in guest profiles can reap substantial rewards for landlords across the UK.
H2: The Distinction Between Corporate and Standard Guests
To fully appreciate why quality matters, it’s essential to first draw a distinction between corporate guests and standard Airbnb guests.
H3: Characteristics of Corporate Guests
1. **Length of Stay**: Corporate guests typically book for longer durations, with average stays averaging between 30 to 90+ nights. This contrasts remarkably with seasonal holiday rentals, which often see guests checking in for just a few nights.
2. **Booking Patterns**: These guests are often part of contractor bookings or insurance relocations. They tend to stay in properties that offer amenities suited for longer-term living, such as equipped kitchens, workspaces, and laundry facilities.
3. **Affordability and Budget**: Corporate stays often involve business accounts or invoicing options, making them financially stable clients. This means they are less likely to haggle over price and more inclined to pay market rates for quality accommodation.
H3: Characteristics of Standard Airbnb Guests
1. **Short-Term Stays**: This guest type primarily books for weekend getaways or short holidays, leading to higher turnover rates in property management.
2. **Diversity**: Standard Airbnb guests can vary widely in terms of needs and expectations, which may lead to inconsistency in booking quality. The chance of attracting guests who may treat the property less considerately tends to be higher, including potential party groups or large family gatherings.
3. **Booking Channels**: While standard guests often come via popular platforms like Airbnb or Booking.com, these channels may result in additional fees, again eating into average booking income.
H2: Benefits of Catering to Corporate Stays
The advantages of focusing on corporate stays can be significant for landlords who take a strategic approach to their property management.
H3: 1. Increased Stability and Revenue
With an average stay of 30 to 90+ nights, corporate tenants can provide a steady income stream. Landlords can also enjoy reduced void periods, as long-term contracts are less likely to break suddenly.
H3: 2. Reduced Wear and Tear
Corporate guests usually treat properties with care as their business relies on quality accommodations. This means the property is less likely to face the wear and tear or potential damage caused by large party groups typical of short-term, standard Airbnb bookings.
H3: 3. Lower Management Costs
Fewer check-ins and check-outs mean a decrease in cleaning fees, maintenance, and the time spent on key handovers. From the landlord’s perspective, this can lead to easy management and cost savings.
H2: Financial Considerations
While it may initially seem easier to attract standard Airbnb guests due to their availability on major platforms, corporate stays offer a different financial picture that savvy landlords can capitalise on.
H3: Invoicing Options
Having the ability to deal with business accounts allows landlords to secure payments in a timely fashion. Many corporate clients prefer invoicing options over direct payments, ensuring that funds are processed efficiently.
H3: Distribution Channels
Leverage the power of non-OTA distribution, as evidenced by the fact that 64% of Keapr’s bookings are made outside Airbnb and Booking.com. By utilising an extensive network with over 92 distribution channels specifically targeting corporate stays, landlords can reach more potential guests without relying solely on traditional platforms.
H2: Real-Life Examples
Consider the case of a property owner in Manchester who transitioned from a purely Airbnb model to focusing on corporate accommodation.
H3: Case Study: The Manchester Transition
Initially, the property attracted a steady stream of weekenders, but frequent cancellations and complaints about noise made it a headache to manage. By partnering with a rental management service like Keapr, which specialised in contractor accommodation, the landlord was able to market the property specifically to businesses needing temporary housing for their employees.
After the transition:
– The landlord experienced a 75% increase in booking income.
– With an average length of stay extending to 60 nights, the property saw minimal turnover.
– Most importantly, the landlord enjoyed significantly less wear and tear without the influx of party guests.
H2: How to Position Your Property for Corporate Stays
If you are interested in tapping into the corporate rental market, consider the following strategies:
– **Adjust Your Furnishings**: Invest in quality furnishings and amenities such as desk space, high-speed Wi-Fi, and local work-relax balance conditions.
– **Focus on Marketing**: Utilise targeted advertising to reach potential corporate clients who require longer-term accommodations.
– **Provide Flexibility**: Make sure your property can accommodate business-related requests, such as invoicing, early check-ins, or laundry services.
H2: The Future of the Corporate Rental Market
As remote work becomes more prevalent and companies embrace flexible working arrangements, the demand for corporate stays is poised to grow. Property owners who adapt now will likely benefit long into the future as the marketplace shifts.
In conclusion, prioritising quality by focusing on corporate stays not only stabilises income but also reduces concerns related to property upkeep and management. Understanding your target demographic and their specific needs will enable landlords to make empowered decisions for their investments.
If you are a landlord looking for higher-quality, longer stays, speak to Keapr today.