Most Airbnb advice focuses on the wrong things.

Furniture, automation, smart locks, pricing tools, and welcome baskets. All of that matters — after the hard decisions are made. Because absolutely none of it can save a property that misses the two fundamentals.

Every consistently profitable Airbnb I’ve seen gets two things right before anything else: location and niche.

Not “good location” in the abstract. Not “nice place for everyone.”
Auspicious demand. A clear reason to book. Tailored to a very specific guest who feels seen.

Location determines whether people are searching in the first place.
Niche determines whether they choose you once they find you.

Get either one wrong, and you’ll be fighting your property forever. Get both right, and the rest of the business becomes dramatically easier.

This article breaks down those two decisions — and how to think about them before you spend a dollar on furniture, photos, or software.

Location Is Demand, Not Preference

When people say “location matters,” they usually mean views, prestige, or what they personally like. That’s not what pays the bills, and it's not what maintains a healthy line of potential guests.

Location only matters insofar as it answers one question: why are people already coming here?

Guests don’t wake up wanting an Airbnb. They wake up needing to be somewhere. A business trip. A wedding. A weekend downtown. A trailhead in their favorite National park. A campus. A seasonal job. Your job isn’t to create that demand — it’s to place yourself as close to existing demand as possible.

The strongest short-term rentals are rarely the biggest or newest homes in town. They’re the ones that make life easy:

  • walkable to the core reason for the trip (the trailhead, the business center, the airport)
  • close to repeat-demand anchors (hospitals, venues, employers, attractions)
  • simple access, parking, and arrival

A modest property in the right spot will outperform a beautiful one that forces friction into the guest’s stay. Convenience beats novelty. Every time.

If your answer to “why here?” is vague, that’s a warning sign. So consider these factors, and write out a list to determine if they weigh enough to support the location choice.

  • Why would your guests want to come here?
  • What other choices do they have for a place to stay in this area?
  • Will the demand for this location last all year, or is it seasonal?
  • If it is seasonal, is the demand strong enough to pay the bills in the existing window?

Niche Is Memory (and Pricing Power)

Once someone finds your listing, the next battle isn’t price — it’s recognition.

Most Airbnbs try to appeal to everyone. They’re “nice,” “clean,” and “cozy.” And because of that, they’re invisible. Guests don’t remember them. They don’t pay a premium for them. They don’t rebook.

A niche doesn’t mean turning your place into a themed spectacle. It means clarity.

Who is this place for?

  • traveling nurses who need amenities and consistency
  • couples escaping for a quiet weekend
  • wedding guests who want proximity and ease
  • remote workers who value light, space, and silence
  • luxury vacationers who want a high-end and curated experience

Strong niches do three things:

  • reduce decision fatigue
  • justify higher nightly rates
  • create repeat bookings and referrals

If your listing could belong to anyone, it belongs to no one.

Location Gets You Found. Niche Gets You Chosen.

This is the mistake most hosts make: they try to optimize operations before they’ve earned the right to.

Dynamic pricing, automation, and systems only amplify what already exists. If your location doesn’t tap into real demand, you’ll be constantly discounting. If your niche isn’t clear, you’ll be competing on price alone.

Before you buy furniture.
Before you design a logo.
Before you argue over paint colors.

Answer these two questions with brutal honesty:

  • Why would people come here?
  • Why should this guest choose me?

Everything else is secondary.

© 2025 Bellamy House. All rights reserved.
The resources, templates, and content provided are for educational and informational purposes only and do not constitute legal, financial, or business advice. Use of these materials does not guarantee specific results. By accessing this site and its materials, you agree not to reproduce, resell, or distribute any content without written permission.