Airbnb Average Occupancy Rate in the UK Market

Investing in vacation rentals can be very profitable, but you should realize that not all markets and properties are equal, and rental income varies per location and property type. Buying a new rental and merely listing it on Airbnb and its alternatives in the UK won’t generate profits for you. You need to invest in a property in a city with a high demand for vacation rentals and base your decision on market research data. 

One of the most important metrics you should consider when choosing a market and checking out prospective investment properties is the Airbnb average occupancy rate by city. The reason is that, together with the average daily rate, the occupancy rate determines your rental income and ROI.

If you have a STR property that attracts a lot of bookings and has a high occupancy rate, you’ll see significant revenue generation and will be able to build a successful business. And if you use vacation rental software like Hospitable to streamline your business operations, you’ll save a lot of time by automating repetitive tasks and will be able to scale even faster.

Airbnb Average Occupancy Rate by City in the UK

Airbnb occupancy rate is the ratio of booked nights to the total number of nights the listing is available for bookings. This metric is very important both for buying profitable Airbnb rental properties and for evaluating the performance of your active Airbnb listings.

The average Airbnb occupancy rate varies by market. In popular tourist destinations or cities with high demand, occupancy rates may exceed 80% or even reach close to full occupancy. Still, 65% is considered a good average occupancy rate for short-term rental properties.

So, how do you find the ideal Airbnb city or market in the UK that is worth investing in? Let’s take a look at the UK STR market data provided by Airbtics that offers Airbnb analytics to help STR investors make smarter decisions.

Here is a table where you can find the occupancy rate in different UK cities and regions that are popular among tourists, as well as information about daily rates, annual revenue, and the number of Airbnb listings in each area.

As you see, such cities and regions as Edinburgh, London, Glasgow, Bristol, Belfast, Bath, Brighton, Cambridgeshire, and Oxfordshire have some of the highest Airbnb occupancy rates. The lowest occupancy rate of 48% is in Blackpool, a seaside town in Lancashire.

What Factors Influence Occupancy Rates of Short-Term Rentals?

As it was mentioned above, owners of Airbnb properties should try to achieve an average occupancy rate of at least 65%. But in general, a good Airbnb occupancy rate allows you to charge an average daily rate that generates the highest possible rental income for your STR property.

The Airbnb occupancy rate is mainly affected by location, but it’s not the only factor that influences occupancy rates. If you want to get more bookings, you shouldn’t rely only on Airbnb. List your property on other major booking sites, such as Booking.com and Vrbo, to reach as many potential guests as possible.

Consider creating your own direct booking website to build relationships with your guests and drive repeat direct bookings. You don’t need any technical skills to do that if you take advantage of Hospitable Direct. You can easily build a fully functional direct booking website within minutes using our professional, easy-to-customize website templates. Moreover, your website will appear on Google Vacation Rentals.

The kind of guest experience that you offer will greatly influence your occupancy rates as well. Modern travelers value amenities that make their stay more comfortable, enjoyable, and memorable. So you need to provide not only basic amenities like everyone else but also offer extra amenities to give more value to your target guests and stand out from your competitors.

It’s also essential to come up with a well-planned pricing strategy that will help you ensure that your rates are competitive and your property can generate Airbnb income throughout the year. Successful hosts rely on dynamic pricing tools that take the guesswork out of setting nightly rates for short-term rentals and use algorithms to calculate and adjust prices in real-time based on market conditions.

You should also remember that regardless of the market and the type of your target guests, your STR property will enjoy a higher occupancy if it is located close to major roads and public transportation. Travelers who come with their car and people who rely on available transportation modes are sure to appreciate this. If they see that they can easily get to your listing, they will be more likely to book it.

Keep in mind that if you’re thinking about starting an Airbnb in the UK, you need to protect your rental space against damage and yourself against personal liability claims with the right insurance. Check out our blog article to find answers to common questions about Airbnb insurance in the UK.