Airbnb Cracks Down on Parties with New Algorithm
After permanently banning parties and events on all Airbnb listings in June, the company is taking a more aggressive stance against unauthorized gatherings. The platform has introduced new screening tools in the U.S. and Canada to identify potential rule-breakers.
How the Algorithm Works
The "anti-party" tech uses an algorithm that analyzes various signals to determine whether a booking may turn into an unauthorized party. These signals include:
- History of positive reviews: The company looks at the user’s past behavior on the platform, including their review history and rating.
- Length of stay: The algorithm takes into account the length of the trip, as shorter stays are more likely to be innocent.
- Distance to the listing: If the booking is made for a property that’s far from the guest’s original location, it may raise suspicions.
- Weekday vs. weekend bookings: The company has noticed that unauthorized parties tend to occur on weekends.
By analyzing these factors, the algorithm can prevent potential rule-breakers from booking an entire property. Instead, they’ll be presented with options for booking a single room on listings where hosts are physically present on the site. This makes it more difficult for guests to start a party without permission.
Extension of Existing System
The new technology represents an extension of Airbnb’s existing under-25 system, which prevents people under 25 with less than three positive reviews from booking whole properties.
Positive Results in Australia
Airbnb has been testing the party-preventing algorithm in Australia since last year, and the results have been promising. According to a blog post, "A similar variation of this system has been piloted in Australia since October 2021, where it’s been very effective." In areas where the pilot was implemented, there was a 35% drop in incidents of unauthorized parties.
History of Party-Related Issues
In 2019, several people were killed at different parties hosted at Airbnb properties. In response, the company banned party-houses – properties that were listed to just host events – and introduced a neighborhood helpline for reporting noisy and disruptive parties.
However, despite these efforts, a survey published by Vivint last month found that one in five renters contravened the no-party rule.
Impact on Business
The new algorithm is part of Airbnb’s ongoing efforts to prevent unauthorized parties. The company has seen significant growth in recent years, with 103 million nights booked during Q2 2022. Despite this success, there are concerns about higher cleaning fees and other hidden charges making Airbnb bookings costlier than they first appear.
Airbnb has defended these charges, stating that it provides transparency about fees when users are booking a property. However, the company acknowledges that there’s room for improvement in this area.
Comparison to Hotel Charges
A report by the Globe and Mail found that Airbnb booking prices were similar to hotel charges per night in Toronto. Data collected by Nerdwallet also noted that 34% of listings had a clearing fee in the 20-30% range of the base fee.
Conclusion
Airbnb’s new algorithm is a significant step towards preventing unauthorized parties on its platform. By analyzing various signals and identifying potential rule-breakers, the company aims to create a safer environment for both hosts and guests.
