A research team from the University of Granada (UGR) and the University of Las Palmas de Gran Canaria (ULPGC) has developed an AI-driven model to analyze the vacation rental market in the Canary Islands.
Published in Socio-Economic Planning Sciences, this system reveals key profitability patterns and investment strategies. One surprising finding is that large-scale operators tend to generate lower returns than individual property owners.
📊 How the AI Model Analyzes the Airbnb Market
The system is based on a Decision Support System (DSS) that integrates social network analysis and advanced data visualization techniques. By mapping over 9,000 Airbnb listings in the Canary Islands, the model provides valuable insights for investors, property managers, and policymakers.
Using an interactive visual map, the system categorizes properties based on similarities, allowing users to identify trends and optimize strategies.
📌 Key Findings from the Study
Researchers identified nine types of vacation rentals, classified based on:
✔️ Guest capacity
✔️ Number of properties managed per host
✔️ Cancellation policies
🔹 1. Unique Listings Generate Higher Profits
The most profitable properties are typically found in the outer regions of the visual map, indicating that uniqueness is a competitive advantage.
These high-earning listings often feature:
✅ Larger capacities for group stays
✅ Longer minimum stays
✅ Distinctive pricing and service strategies
🔹 2. Large-Scale Operators Underperform
Contrary to expectations, properties managed by large rental companies tend to be less profitable than individually owned properties.
This is due to:
❌ Less personalized guest experiences
❌ Rigid pricing strategies
❌ Lower guest satisfaction and fewer repeat bookings
🔹 3. Key Strategies to Boost Airbnb Profitability
Hosts looking to maximize earnings should consider:
🏆 Earning the ‘Superhost’ badge to build trust with travelers
📊 Optimizing cancellation policies to align with market demand
✨ Differentiating through exclusive services, such as:
✔️ Local experiences
✔️ Flexible check-in options
✔️ Premium amenities
💰 AI Applications for Investors and Tourism Managers
This AI-powered system is not just beneficial for Airbnb hosts—it also provides crucial insights for:
📌 Investors – Identifying high-value properties and maximizing returns
📌 Tourism managers – Designing effective marketing strategies and dynamic pricing models
📌 Urban planners – Implementing data-driven regulations for sustainable tourism growth
Notably, the study found that profitability is not solely location-dependent. Instead, property management strategies play a more critical role in success.
🏢 DaSCI: AI Driving the Future of Tourism
This cutting-edge system was developed by DaSCI, the Andalusian Interuniversity Institute for Data Science and Computational Intelligence. DaSCI brings together experts from Granada, Jaén, and Córdoba to apply AI and data science across industries, including tourism, economy, and urban planning.
🚀 Conclusion: Leveraging AI for Airbnb Success
This study confirms that differentiation and strategic management are key to succeeding in the vacation rental market. With artificial intelligence, property owners and investors can make data-driven decisions, increase profitability, and stay ahead of market trends.
💡 Are you an Airbnb host or planning to invest in vacation rentals? Applying these AI-backed strategies could make all the difference! 📈
