THE Airbnb landscape in Montego Bay boasts remarkable diversity in properties, with such wide-ranging prices, locations, and amenities that newcomers to the business may struggle to find their own successful niche. To make his Airbnb competitive in this environment entrepreneur Errol Smith chose to strategically focus on group travellers while striving to provide a high level of service tailor-made to their needs.

It was seven years ago when Smith decided to convert his Montego Bay home into a villa for rent, dubbed Steel Love.

His neighbourhood, Ironshore, represents a blend of higher- and middle-income households, attracting tourists on account of its proximity to the airport, shopping facilities, fast food restaurants, and nearby tourist attractions.

The entrepreneur was well aware that such premium residential areas fetch attractive prices in the tourism market but he also reasoned that many travellers choose Airbnbs over hotels because they are constrained by limited budgets.

It was this line of thinking that motivated him to transform his home into a five-bedroom villa that would cater exclusively to groups.

“I only do family groups or groups of friends,” Smith said, “When they are here, nobody shares with them [they have the house exclusively to themselves]. That’s what they like.”

It was a means by which his large house could be as competitive as self-contained apartments, which tend to do very well in the Airbnb market. If he rented his rooms to different customers at the same time they would have to share the kitchen, TV room, living area and swimming pool with other guests, and this would put him at a disadvantage — from a marketing point of view — as travellers prefer having such amenities exclusively to themselves.

However, a group of family or close friends are like one unit and when they take the whole house they get that same sense of exclusivity, relishing more private space than in a traditional hotel, allowing them to enjoy more personal interactions with one another.

But returning to the cornerstone of Smith’s thinking, the primary advantage is affordability.

“Remember: Most of the people who are booking are not rich people,” he emphasised, “so what they do is group up together so that, like for birthday celebrations, they get all their friends to come with them. They don’t have a lot of money.”

For a group, renting a villa can be cheaper than renting hotel rooms, and the cost is often split among the group members.

And for Smith, marketing the property in this way helps him to earn more by hosting more guests at once, maximizing his occupancy rate and efficiently using his space.

Larger numbers of guests who have enjoyable experiences leads to larger numbers of positive reviews — the driving force behind a successful Airbnb business.

An affordable price is so important to his market that even with maintenance costs constantly rising he is very careful about increasing his rates.

“Maintenance is getting higher,” Smith lamented, “but at the same time, if you want to stay alive you can’t be putting up your price too high. Even if the maintenance goes up you have to be careful how you push your price because that’s what gives you business.

“I know this because a lot of people say that the reason they booked me is because my price was good and the place looks nice,” he added.

But the villa owner also emphasised the importance of customer service as another tool for carving out his own special niche in the market.

“A lot of people are going into the business and they don’t understand customer service,” he opined, “all they think about is getting the money. That’s why I am always at the villa when guests are there. I make sure that as they call, I answer them. And if there is any problem, I jump on it right away.”

Airbnb teaches that being attentive to the needs of guests, responding to inquiries promptly, and addressing issues quickly increase the likelihood of positive reviews and return bookings.

Indeed, Smith related that his business is now driven by an even split of new online bookings and repeat customers.

Like most businesses in the tourism industry, Steel Love took a heavy blow during the COVID-19 health crisis. Business is now returning to normal as the island enters the post-pandemic era.

“But I hear people still bawling that the hotels are getting most of the business,” Smith was quick to point out.

Looking ahead, he sees a future of mixed results for the industry.

More property owners entering the tourism market can lead to market saturation and increased competition. The entrepreneur believes this will make it harder to attract consistent business but he feels such a reality will be more difficult for newcomers to the sector than for those like himself with years of experience and knowledge of what is required to succeed.

“A lot of people go into the business and their properties are not up to standard,” he said. “Many places are not fit to be Airbnb. And a lot of people don’t know how to talk to guests, and their actions may cause guests not to return to their properties.”

Whether Jamaica’s recovery in the post-pandemic era will be strong or muted, the entrepreneur’s game plan of differentiation, conservative pricing, and superior customer service should keep his business successful and sustainable in the budget-conscious market to which he caters. His strategic approach is something that newcomers can learn from.