The Traffic Light System's Impact on Airbnb

The impact of the Covid pandemic on Airbnb short term rentals has revealed the need to
improve their marketing and modelling strategies, according to Airbnb’s Founder and CEO.

Airbnb? Effective

Their new paper, which can be seen in Tourism Management, focuses specifically on the
touristification of short term rentals.

The study shows that Airbnbs are an effective alternative to traditional housing, particularly in
the recent dismantlement of the Covid traffic light system. More Airbnb rentals can reduce
residential rental prices if located in low density, house dominated suburbs.

The basic idea of the Airbnb model is to inspire people to get travelling again. In the wake of this
alternative platform, having a short term rental has been proven to drive up Host’s profits and
bring down stress compared to traditional housing options.

Not only does this increase travellers’ incentive, it may also increase the likelihood of new
Hosts. With the loosening of the traffic light system, more people are taking advantage of thew
warmer weather: and the new travelling season.

Though Airbnb had quaint beginnings, lately they’ve taken advantage of the technology boom to
implement new data research to choose the best listings per customer.
"What's happening in a weird way is that the home is becoming the destination," CEO and
cofounder of Airbnb, Brain Chemsky says.

A Market Readjusted

While the pandemic has changed travel forever, it seems that the industry “is roaring back”.
"And it's roaring back in Australia. It's roaring back in countries all over the world. This is going
to be a massive travel rebound that will be unlike anything we've seen in multiple generations,"
adds Mr Chesky.

If anything, Airbnb as a platform has helped revitalize the travel industry, even with the
interruption posed by the pandemic. With the traffic light system now dismantled, travellers can
start to relax and enjoy their next booking with relative ease.

Additionally, customers are seeing even more changes with how Airbnb represents themselves
as a business. They’re introducing brand new features for easier access to new and hidden
listings, plus new categories and a built in safety feature.

Improving the platform’s policies on health and safety was a no brainer, according to Chemsky.
“We think this is going to be the travel rebound of the century. Tons of people are gonna be
traveling, and we’re stepping on the gas. We’re not pulling back.”

Additionally, the company wanted to “recapture the magic” of travel by announcing these
updates. Added incentive to build these safety features is the fact that many customers haven’t
taken their first trip since the pandemic. With these additional updates to their Terms of Service,
Airbnb is changing the design of the travel industry for good.

Providing Convenience and Security

Security is crucial, whether you’re hosting or travelling. With the traffic light system being taken
down in place of lowered Covid cases, Airbnb is easing up on their policies; for example,
continuing Covid refund service fees where trips are cancelled by the virus.

But this doesn’t mean they’re lowering their security standards.

The company has said that they are tightening their safety and security measures, including
adding free AirCover, which ensures that travellers are protected if they’re staying in a
stranger’s home.

These security measures also embrace the policies created in the wake of the pandemic; while
Airbnb no longer relies on the traffic light system specifically, they are still taking measures to
ensure clients (Hosts and travellers) are well before they book.

This includes providing the options to disclose your vaccination status.

If you liked our blog post, or have any questions about its content, feel free to get in touch with
us. Also, click here for your free short term rental appraisal.