With the festive season fast approaching, holidaymakers are turning to Airbnb for their short-term rental needs, driven by the app’s ease of use and flexibility, a diverse range of accommodation options, locations, and oftentimes, pricing.
While Airbnb is known to drive short-term rental demand across the globe, popular tourist cities like Paris, London, and Croatia have, in fact, banned or restricted activity.
Airbnb’s Growing Popularity During the Festive Season
In South Africa however, it continues to play a pivotal role in the recovery of the country’s tourism sector and despite being met with some scepticism, it has changed the way in which we look at – and purchase – investment properties.
HOW to maximise South Africa’s public holidays in 2025
One of the most popular local destinations on Airbnb over the festive season will undoubtedly be the ‘Mother City’. Voted by Time Out as the Second-Best City Globally to Live and Visit earlier this year, Cape Town continues to attract waves of visitors over the festive season, with Cape Town International Airport recording foot traffic by 317,000 two-way international passengers in December 2023 alone.
Airbnb also cites that the high demand and subsequent high supply of Airbnbs in the City will allow almost half of Cape Town’s hosts to afford their homes. The platform goes on to say that Cape Town welcomed 700,000 guests, contributing an estimated R14.4 billion to the GDP.
Although Cape Town is an obvious holiday destination, unknown to many, Bela-Bela in Limpopo was South Africa’s top performer on Airbnb in 2022 with bookings surging by more than 400%. In addition, the Free State and KwaZulu also came out on top – proof that setting up a short-term let in provinces across the country is a viable option for investors.
‘My homeland’: Festive season reveals what expats love about SA
Thinking of Airbnbing? Some Important Considerations
If you are looking to get into short-term rentals via Airbnb, then there are some key considerations to keep in mind.
While the financial and flexibility benefits of this rental option are significant, there are also some potential drawbacks, including:
- Higher operating costs (cleaning, maintenance, management fees etc.).
- Management and administration requirements.
- Fluctuation in demand which requires cash flow and forward planning.
- Service fees associated with Airbnb.
- Standing out on a saturated platform – with so many options to choose from.
Ways to maximise short-term rental profits
Standing out and maximising your profits requires a strategic combination of effective management, marketing and customer service.
Here are my top tips to stand out from the crowd:
- Have a strategic pricing strategy: Platforms like Airbnb offer dynamic pricing, which uses an algorithm to adjust rates based on demand, local events and seasonality. You can also attract guests by offering discounts for longer stays or last-minute bookings.
- Carefully prepare your property: Keep it clean and well maintained and invest in quality furnishings and décor to make your property stand out.
- Invest in professional photography: High-quality photos can significantly improve your listing’s appeal so make sure you capture it in the best light.
- Optimise your listing: Write a detailed property description that includes relevant keywords to improve search engine visibility. Be sure to highlight the unique selling points and amenities of your listing.
- Encourage guests to leave positive reviews after their stay: A high rating will impact your booking rates.
- Communicate effectively: Respond quickly to guest messages and address time-sensitive issues to maintain a high level of customer service.
- Consider hiring a property management company: They can handle day-to-day tasks and help streamline check-in and out processes for maximum guest convenience.
- Personalise the guest experience: Special touches like welcome gifts and local recommendations can go a long way in creating a memorable stay and securing repeat guests.
- List your property on multiple platforms to expand reach and maximise occupancy.
Tourists swarm into Mpumalanga during festive season
We would also recommend using analytics tools to track your rental performance, occupancy rates, and revenue and adjusting your strategy based on these insights.
