Despite APTR changes Auckland Airbnb remains profitable in Auckland
Last month, the Auckland council looked to bring the rates of Auckland Airbnb hosts in line with that of hotels, motel
and serviced apartments. Depending on the location and how many nights per year a property was occupied, some hosts were
stunned to discover more than a 225% increase.
This change has undoubtedly upset many in what is quite a sizeable Auckland Airbnb community, however, despite this, the
short-term accommodation market in Auckland is still booming and with the right strategy, healthy profits are still very
much achievable.
Stefan Nikolic, director of Zodiak, a company who manages Airbnb properties in Auckland believes that we will begin to see the nightly rate of Auckland Airbnb properties increase to supplement this rate
increase.
“As with any business, this cost increase will be passed on to the consumer and reflected in an increase in nightly
rates on Airbnb”.
However he stresses that, despite this increase, Airbnb will still be able to list at notably cheaper prices than
hotels, thus the competitive advantage that Airbnb currently holds over hotel and motels will be maintained.
“Although the price gap will close a bit it will still be cheaper for punters to book with Airbnb, therefore Airbnb will
continue to be perceived as the most cost effective option in the eyes of the public”, explains Nikolic.
The Airbnb industry has been booming in Auckland for quite some time, so much so that, even hosts which perhaps did not
have the greatest reputation for service and experience could still thrive on the platform.
With these changes not everyone will continue to cash in big and Nikolic expects hosts who position themselves as a high
quality, premium accommodation option on the platform to be the ones who will continue to thrive - while the less
desirable will drop off.
“As the adage goes, the cream will rise to the top”.
Nikolic’s advice for those who are considering whether they should stick with the short-term accommodation platform is
to invest time into better optimising their listings, providing a high level of service and creating an experience which
will lead to positive reviews.
“With our clients we are able generate 30 – 40% higher rental income after all expenses. We achieve this through
creating a premium hotel-quality experience which leads our listings receiving a high number of return guests and five
star reviews - factors which boost the listing up the Airbnb search results pages.”
“Achieving these prime positions will allow you to charge a higher rate and afford you much greater occupancy”.