Airbnb Hosts With Big Empires Get Lower Ratings From Guests, CEO Said
Airbnb’s Growth Poses Challenges Ahead
Airbnb’s incredible growth has led to its CEO, Brian Chesky, discussing the implications on the short-term rental giant’s operations. On an episode of The Verge’s Decoder podcast, Chesky revealed that smaller-scale hosts offer a more genuine “local feel,” differentiating them from the thousands of properties managed by massive hosting operations.
While property managers with many listings, Chesky noted, earn significant revenue, they often generate lower ratings – an average of 4.62 out of 5 stars. Professional hosting companies with economies of scale, on the other hand, struggle to create authentic experiences, resulting in dissatisfied guests.
“Locals know the hidden spots, and they care because they live there. Their homes are their personal thing,” Chesky emphasized on the podcast. These homegrown hosts, managing between three to five properties at most, provide personalized and unique experiences, keeping things local and authentic.
A recent survey by short-term rental analytics site AirDNA found that property managers controlling over 21 listings manage 28% of total listings and generate 36% of the industry’s revenue. This influx has led to concerns among regulatory bodies and local communities. Cities like Barcelona and NYC are reevaluating the impact of short-term rentals on their housing markets. Some places are taxing hosts, while others ban outright.
As Airbnb adapts to this new reality, Chesky highlighted that genuine property managers, managing an average of 50 hosts, create an impressive record of high ratings – while larger operations often sacrifice on quality. The key here is authenticity, understanding guest needs, and attention to detail, which large hospitality chains can’t easily duplicate.
Chesky hopes that the Co-Host Network, a recent update, will bridge the divide between massive hosting companies and small-scale hosts, generating a win-win scenario: more satisfied guests, high-quality services, and localized experiences. With regulations at play and concerns of unbalanced hosting, we anticipate a significant shift towards what Airbnb deems essential.
What’s ahead:
Airbnb aims for a balanced approach. Expect more innovative solutions addressing scaling issues, local support networks, and enhanced community platforms. How will regulations shift? Only time will tell.
Why it matters:
From regulatory battles to adapting user experiences, Airbnb must weigh the balance between expansion, quality, and neighborhood integrity.