Guide to Market Verification for Short Term Rental in Malta – Optimize Your Rental Performance
Malta’s captivating allure has long attracted tourists, making it a hotspot for short term rental in Malta (STRs). However, recent years have seen a surge in both hotel development and STR listings. This increased competition, coupled with the possibility of market saturation, might leave property owners wondering: why isn’t my listing performing as well as it used to?
In this ever-evolving market, staying informed and adapting your strategy are crucial for success. Here, I will guide you through effective methods for verifying the health of the short term rental market and an understanding on how to analyse the local market.
The Saturation Question: Fact or Fiction?
There’s no denying that Malta’s short term rental market has grown significantly. This growth can lead to increased competition, potentially affecting occupancy rates and rental income. While tourism continues to rise in Malta, it’s essential to assess whether the annual growth can keep pace with the growing number of available rentals.
Harness the Power of Online Communities:
Join Facebook groups and online forums specifically for short term rental hosts in Malta and Gozo. These vibrant communities offer a treasure trove of information:
- Gather First-hand Insights: Engage with experienced hosts to understand their current experiences with occupancy rates, rental income, and guest trends.
- Uncover Local Knowledge: Learn about upcoming events, seasonal fluctuations in demand, and any area-specific regulations or challenges faced by hosts.
- Gauge Market Sentiment: Analyze discussions to understand the overall mood of hosts in Malta and Gozo. Are they optimistic? Are there any recurring concerns being expressed?
Become a Tourist Trend Tracker:
Regularly follow tourism statistics for Malta provided by organizations like the National Statistics Office of Malta. Understanding tourist demographics, source countries, and length of stay can help you adjust your marketing strategy to attract the right guests.
Taking Control: Verifying the Market Yourself
Instead of solely relying on external pronouncements, here’s how you, as a property owner, can actively assess the current state of the market and make informed decisions:
Become a Market Detective:
- Embrace the Power of Data: Leverage platforms like AirDNA or data analysis tools. These tools offer historical and projected data on occupancy rates, average rental income, and seasonality trends for specific locations in Malta and Gozo. Analyze the data for your area to understand the potential performance of your property in the current market.
- Dive into Listing Trends: Regularly monitor popular STR platforms like Airbnb and Booking.com. Track the number of new listings added in your area and their features. This will help you identify your competition and potential gaps in the market that your property could fill (e.g., unique amenities, targeted guest demographics).
Taking the Manual Route and Dive into Listing Trends: Verifying Competition on Airbnb and Booking.com
While data analysis tools offer valuable insights, sometimes a hands-on approach can be equally revealing. Here’s how you can manually assess competition on popular STR platforms like Airbnb and Booking.com:
Simulate Guest Searches:
- Open a Private Window: This ensures your search results are not influenced by your past browsing history or login status.
- Target Your Listing’s Dates: Identify a few upcoming dates on your calendar that are currently vacant. These will be your search dates.
- Search for Similar Properties: Go to Airbnb or Booking.com and enter your property’s location details (city, neighborhood, or specific landmark).
- Set Guest Count: In the search criteria, specify the number of guests as “2 adults.” This should match your typical guest occupancy.
- Refine Your Search (Optional): Consider adding additional filters to mirror your listing’s offerings. For example, if your property has a pool, you could filter for listings with a pool. However, avoid filtering too narrowly, as you want to capture a broader picture of available competition.
- Hit Search: Once your search criteria are set, click “Search” and see the results displayed.
Analyze the Results:
- Count the Competition: Take note of the total number of listings displayed on the first page of search results. This gives you an idea of the immediate competition your listing faces for those specific dates.
- Page Through Results (Optional): If the number of listings is high, consider browsing through additional pages to get a more comprehensive picture of overall competition.
- Compare Listing Prices: While you won’t be able to see the exact price of every listing, pay attention to the price ranges displayed. This will give you a general sense of how your pricing strategy compares to the competition.
- Evaluate Listing Quality: Take a quick look at some of the competing listings. Notice the quality of photos, descriptions, and amenities offered. This can help you identify areas where you might be able to improve your own listing to stand out.
- Repeat the Process: Perform this manual search exercise periodically throughout the year, focusing on different seasons and weekdays vs. weekends, to gain a well-rounded understanding of competition throughout the year.
Understanding Your Listing Position:
Unfortunately, Airbnb and Booking.com don’t publicly reveal the exact ranking of your listing within their search results. However, there are a few ways to get a general sense of where you might be positioned:
- Search Results Page: Generally, listings displayed on the first page of search results receive the most visibility. The further you have to delve into subsequent pages, the less likely potential guests are to see your listing.
- Guest Reviews: Listings with a high number of positive reviews tend to be ranked higher in search results by some platforms.
- Completion Rate: Maintaining a high completion rate (avoiding cancellations) can also positively affect your listing’s ranking.
Remember: While manual searches offer valuable data points, they are just one piece of the puzzle. Combining this information with data analysis tools, insights from online communities, and partnering with a management company like Casa Rooms will provide you with a comprehensive understanding of the market and empower you to make informed decisions to optimize your listing for success.
Partner with Casa Rooms for Success in Malta’s Short Term Rental Market
At Casa Rooms, we understand the complexities of the Maltese short term rental market. We offer a range of services to help property owners like you maximize the potential of your investment. From market analysis and competitor research to professional listing management, guest communication, and dynamic pricing strategies, we can help you navigate the ever-changing landscape and achieve optimal results.
Contact Casa Rooms today for a free consultation and let us help your Malta short term rental property thrive!
