The Secrets of Top-Earned Airbnb Hosts in New York
Calculation of Potential Monthly Yield of Airbnb
According to Airbnb’s official statistics, in New York, the Airbnb visitors stay on average 6.4 nights. Besides, a review rate of 50% was chosen to convert reviews to estimated bookings based on the past experience of Airbnb company. According to the above statistics, we were able to infer the Airbnb host’s monthly revenue, the calculation formula is as follows:
yield_per_month = Average length of stay * price * (number of reviews per mouth /review rate)
# calculate the average monthly yield
airbnb["yield"]=airbnb["price"]*airbnb["reviews_per_month"]*6.4*2
Reasons Behind the Yield Difference (hvplot)
After calculating the monthly yields of Airbnb listings, we classified the results into 3 categorys: high yield(top 30%), median yield(30%-70%), low yield(70%-100%).In this part, we decided to do some simple comparison among different yields’ Airbnb.
To begin with, we compared the host_year among different yield types. A interesting finding is that the new hosts’ Airbnb seems to earned more than those experienced hosts.
In terms of the host response time, the high-yield Airbnb host’s response time is much higher than the median-yield hosts and low-yields hosts, most of them response to the guests within an hour.
Besides, the percentage of high-yield hosts who verified their identity is higher than those who do not. However, in the low-yield group, the reverse seems to be happening.
When it comes to the instant_bookable, it could be inferred from the following figure that whether the Airbnb is intant bookable might have no effect on Airbnb yields.
Secrets of the Top 5000 High-Yield Airbnbs in NY (altair)
Here, we chose the Top 5000 yield Airbnbs to further explore their characteristics. Firstly, we visualized the spatial distribution of those high-yield Airbnb.
Obviously, those high-yield Airbnbs are mainly located in Manhattan and brooklyn.
Also, we visualized the price ditribution of high-yield Airbnbs by room type. The result indicates that most of the Airbnbs in New York are entire apts, and the price of entire home is also generally higher than the private room.($50-$300 for entire apt, $50-$150 for private room).
How about the cancellation policy? we explored the relationship between cancellation policy of high-yield Airbnb and their room types, and found that most of the high-yield Airbnb have a strict cancellation period (with a grace period of 14 days).
Are review scores positively related with Airbnb yield? The answer seems to be yes!
Then, we analyzed the texts (after cleaning) of high-yield Airbnbs’ names and found the top 15 common words.
A wordcloud with the top 60 key words for high-yield Airbnbs in New York has also been created. As can be seen from the following picture, these words could be mainly divided into groups, each reflecting different characteristics of hith-yield Airbnb: the first group contains popular room types, like apt, studio and loft; the second group is about locations, like manhattan, brooklyn,and williamsburg; the third category may suggest some popular characteristics, such as cozy,luxury and private;
Recommendations for Airbnb Hosts
To conclude, there are several points that Airbnb host could do to increase their probability to get more yields;
- The Bedford-Stuyvesant, Williamsburg and Hell’s Kitchen neighbourhood might be the potential top-earned locations.
- The studio, loft or private room might be a better rent choice than shared room.
- Be hospitable. More hospitable the hosts, more better the review score it would be. Top earner always have a higher review scores.
- Be responsive, and always response the conversations. most of the top performer hosts always giving response within an hour about 80% of all the time.
- Make your account verified by Airbnb. Many of low performer accounts have not verified by Airbnb more than the high performer.
- Set a strict cancellation policy.Most of the top-earner in Airbnb choose to set a strict cancellation with with a grace period of 14 days.
- Try best to make your home cozy, modern and beautiful.