Airbnb Occupancy Rate: 15 Actionable Tips to Boost Your Results
Want to become a great host with plenty of 5-star reviews? You’ll need to make your listing stand out from the crowd and do your best to delight your guests. To help you navigate your way in the hosting world and avoid common mistakes, we have put together this list of Airbnb dos and don’ts you should keep in mind.
Your Airbnb occupancy rate is one of the most critical factors that determine whether or not your short-term rental is successful. As a host who treats Airbnb as a business, you don’t want your space sitting vacant because it means lost revenue. So what can you do to keep your property booked all year round, even during a slow season?
In this blog post, we’ll discuss the Airbnb occupancy rate and how to calculate it. We’ll also look at what a reasonable occupancy rate is and give you 15 proven tips on increasing the occupancy rate of your vacation rental.
What Is Airbnb Occupancy Rate and Why Does It Matter?
The Airbnb occupancy rate is one of the key metrics to analyze and evaluate the performance of a STR property. This metric shows how often a vacation rental property is booked compared to when it is available for rent.
The occupancy rate is usually expressed as a percentage and can be calculated monthly or annually.
Here is an occupancy rate formula you can use to calculate an occupancy rate for your Airbnb:
Divide the number of booked nights by the number of nights available for booking and multiply by 100%.
For example, if guests stayed at your Airbnb rental for a total of 20 days in September, and you made your property available for the entire month, then the occupancy rate is 20/30 x 100% = 67%.
Tracking the occupancy rate is essential because this metric helps you evaluate your property’s performance and directly affects the revenue. The higher the occupancy rate of your Airbnb property, the more income you will generate, and the more likely you are to become a successful STR host.
But a high occupancy rate also means that as a host, you’ll need to invest a lot of time and effort in managing your bookings and communication with guests. That’s why automating your hosting routine using short-term rental software like Hospitable makes sense. Our STR super app offers a wealth of advanced features and can put your Airbnb business on autopilot.
Average Occupancy Rate on Airbnb
The truth is that there is no one good occupancy rate for STR properties. This number varies across different markets, so knowing your local market is essential. It’s also important to keep in mind that a high occupancy rate isn’t always the best option. You should focus on achieving the best balance between occupancy and high revenue per night.
Occupancy depends on many different factors, including the location of the STR property, its type and quality, supply and demand, and seasonality. So it’s always better to look at the average occupancy rate of other STR properties in a specific market instead of the nationwide average.
For real estate investors looking to invest in vacation rentals, the average occupancy rate on Airbnb is a critical factor to consider because it indicates whether the specific location is worth investing in.
If your property is located in the US, you may want to check out our blog article, where you can find Airbnb statistics by city, including the list of the top 25 US cities with the highest Airbnb occupancy rate.
If you’re looking to start Airbnb in the UK, you may want to check out our blog, where you can find the average occupancy rate in different UK cities and regions that are popular among tourists.
If you’re looking to buy an Airbnb property in Canada, we recommend you check out our article to find information about the average Airbnb occupancy rates in different cities and regions of Canada.
How to Increase the Occupancy Rate on Airbnb
There are many things you can do to get more bookings and improve your Airbnb listing’s occupancy rate. If your occupancy doesn’t meet your expectations, here are 15 proven strategies you can try.
1. Reduce your minimum nightly stay
Before Airbnb came along, it was common for holiday homes to be rented exclusively for a minimum of 7 days. It made a lot of sense because it maximized the profits for the host and minimized their workload.
But things have changed a lot since then. Now, people don’t want to be restricted to week-long rentals; they expect the flexibility to stay at a place just for a night or two. That’s why it makes sense to adapt your Airbnb minimum stay requirements according to seasonal demand and prevailing industry trends.
So during peak seasons, consider reducing your minimum nightly stay to attract more guests. This way, you’ll be able to accommodate travelers seeking shorter stays and maximize your STR property’s occupancy potential. By reducing your minimum stay, your listing will appear in more searches, and you’ll get more bookings as a result.
2. Optimize your prices
The price you charge per night has, by far, the most significant effect on your occupancy rate, above all other factors combined. The mistake many hosts make is taking the “set it and forget it” approach, by rolling with as few as four pricing variations for the entire year.
Relying on fixed rates can be a costly mistake. The vacation rental market is constantly changing, and your pricing should change with it. You should regularly adjust your rates according to market trends and seasonality.
To increase your occupancy, you must optimize your prices to be competitive for every date range throughout the year. It’s also important to ensure that your rates are profitable. If the idea of optimizing your pricing sounds like too much hard work, you can automate the process using online dynamic pricing tools.
The good news is that if you opt for Hospitable, you’ll be able to take advantage of our built-in Dynamic Pricing solution, which is included in Host, Professional, and Mogul plans, at no extra cost. If you activate the Dynamic Pricing feature for your property, Hospitable will automatically adjust your rates based on real-time market conditions to maximize revenue and occupancy. Our system will push recommended rates to all your connected booking channels, including Airbnb, Vrbo, Booking.com, Agoda, and your Direct booking website.
3. Make your amenities stand out
If everyone around you is offering just the basic amenities, why not try to stand out from the pack by making your amenities “above average”? Travelers have abundant choices, yet well-chosen Airbnb amenities can set your listing apart and help attract more bookings.
Identify your target guests and cater to their needs. For example, business travelers will appreciate fast WiFi and a dedicated workspace, while families value kid-friendly extras, a fully stocked kitchen, and safety features like baby gates. Consider adding amenities that not only meet but also exceed guest expectations, such as premium bedding, a hot tub, a game room, and smart home features, as these will allow you to charge higher nightly rates.
4. Give special offers
When a traveler sends you a message before they book your property or submit a trip request, you can send them a special offer with a discounted price. Granted, you won’t make as much as you potentially could have, but if it’s a super last-minute booking, it’s a great way of securing the reservation.
Here’s how to send a special offer
Go to the Inbox on airbnb.com
Open the message from the guest you want to send a special offer to
Click Special offer
In the Subtotal field, enter the price you’d like to offer your guest for their stay (be sure to include your additional guest fee in this subtotal, as well as cleaning fees, pet fees, or any other fees you’ve agreed upon)
Click Send special offer
5. Offer special discounts after checkout
Consider offering discounts for repeat bookings to give your guests a reason to return. Discounts and rewards work particularly well when you have built strong relationships with your guests and can offer them a sense of value.
Not only does it show goodwill, but it‘s also much easier to convert a pre-existing customer who already knows what to expect. Do this regularly, and you should see an increase in your occupancy rates over time.
Pro tip: Create a direct booking website and encourage returning guests to book directly. This way, you’ll save money on OTA’s fees.
You can easily build a beautiful direct booking website with Hospitable using our professional website templates—no technical skills are required. We’ll list your Hospitable Direct properties on Google Vacation Rentals, and you’ll be able to get direct bookings without paying high third-party fees.
6. Upsell free nights
If you have a guest in your property and there are spare nights available after their checkout dates, offer those nights as a special offer to your guests. Many guests may want to take the opportunity to extend their trip, allowing you to book an otherwise vacant night.
This process can be done manually, of course, or if you’re a Hospitable user, the whole process can be automated. Using Hospitable’s custom codes feature, you can inform your guests about the possibility of extending their stay automatically by sending a guest message only if the day before or after their booking is available.
You can take advantage of the Hospitable’s Upsell feature and offer extra guest services and amenities (including the option to extend stay) to your guests for a fee. Just create a catalog of your offerings and send your guests the link to their guest portal, where they can purchase any of them. You can also allow our AI to spot orphan nights and offer extended stays automatically.
Watch this explainer video to learn how you can offer paid upsells to your guests.
7. Open single nights between bookings
If your minimum booking length is set to anything other than one night, then you’ll often find yourself with random unbookable single nights in between bookings. Those otherwise guaranteed vacant nights can be opened up by manually going into your Airbnb dashboard and changing the availability for that specific night.
If you enable single-night stays on specific dates, it can help fill gaps in your calendar between bookings and increase your occupancy. By allowing single-night stays, you can ensure that your Airbnb rental remains occupied and generates consistent revenue throughout the year.
You can open single nights between bookings on Airbnb by creating custom rules for each day of the week when setting minimum nights for your listing. For example, you might set a 2-night minimum for Friday check-ins and a 1-night minimum for all other days. Just click or tap Minimum nights under the Trip length in your Calendar, and then click or tap Customize by check-in day.
8. Become a Superhost
Having the Superhost badge on your profile and listings signals trust—it shows that you offer an exceptional guest experience. So becoming a Superhost can potentially help you attract more guests.
Although being an Airbnb Superhost doesn’t necessarily have a direct impact on your occupancy rate, it will help you gauge how well you’re doing as a host, which will inadvertently have a positive impact on your occupancy rate.
9. Focus on getting good reviews
The positivity of the reviews you receive has a significant impact on the number of bookings you get. The review system is the heartbeat of Airbnb, and reviews have a huge influence over a guest’s booking decisions.
Positive reviews and high ratings build trust and increase your chances of standing out in a crowded market. So it goes without saying that positive reviews have a huge impact on your occupancy rate.
Getting great reviews on Airbnb is part art, part science, and it’s well worth your investment. Focus on providing exceptional customer service, prompt your guests to leave a review after their stay by posting a review for each of your guests, and reply to guests’ reviews, whether they are positive or negative.
Managing guest reviews can be time-consuming for a busy host, so consider automating this process with Hospitable to save time and effort. We can help you get more excellent reviews with our Airbnb review generator and automatic review request. You’ll also be able to use AI to draft personalized guest reviews and review replies for you.
10. Adjust your listing to reflect the season
Different seasons evoke different emotions and affect the booking habits of your guests. For example, in the summer, guests will be searching for vibrant, colorful listings to enjoy the warm weather. However, in the winter months, guests will find places that are warm, cozy, and comfortable, more appealing.
So we recommend having two separate sets of listing descriptions and images to reflect seasonal variations and maximize their appeal. Taking the time to craft seasonally adjusted listing variations can have a significant impact on your occupancy over time.
11. Get professional photos
Photos make an enormous impact on the booking decisions of your potential guests. If your images are average, with bad lighting and poor execution, you’re likely turning off a large number of people from your listing.
It’s crucial to ensure that your photos showcase your rental space in the best possible way, accurately represent the unique features and amenities of your property, and resonate with your target audience.
Although getting professional photos may be a little costly at first, those images will pay you back handsomely over time as your occupancy rate increases. You can have a decent start using our Airbnb pictures guide before hiring a professional.
12. Respond to guest queries instantly
Sometimes, replying quickly to guest queries can be the difference between securing a booking and losing it to your competitors. This is especially true for last-minute bookings. If a guest can’t get answers to their questions quickly from you, they’ll book with someone else.
Thankfully, it is possible to automate much of that process using Hospitable. In fact, we’ve even built an AI solution for precisely this scenario. Our system will auto-detect frequently asked questions and provide answers to your guests’ questions automatically.
Hospitable will help you ensure fast and clear communication with your guests across all your connected booking channels with automated messages. You’ll also be able to use the Suggest with AI and Improve with AI tools available in your Inbox to draft and correct detailed, personalized responses when you message your guests manually.
You can help our AI write better messages by uploading your guidebooks to the Knowledge Hub to educate the AI about your properties and policies. Train the AI to draft responses for you, and once confident, you can opt for a fully automated AI Inbox.
13. Turn on Instant Book
This way, you’ll allow your guests to book your property without your approval. Travelers want the booking process to be fast and straightforward. By enabling the Instant Book feature, you can streamline the booking process and attract more guests to your Airbnb property.
The Airbnb algorithm prioritizes listings with Instant Book in search results, making them more visible to potential guests. More visibility leads to more clicks and more confirmed bookings. Moreover, guests can use filters to search for properties that can be booked instantly.
14. Make your listing business-ready
There’s a growing demographic of users on Airbnb: Businesspeople. In fact, it’s such a growing user base that Airbnb has developed a whole new service to encourage more business travelers to use its platform.
The best part is, the bar for making your listing business ready isn't that high. You can enhance the appeal of your rental property to business travelers by providing hotel-like amenities, such as a dedicated workspace, ergonomic furniture, and reliable high-speed WiFi.
15. Add extra sleeping options
One of the quickest ways to increase the scope of your listing and to show up in more searches is to increase its sleeping capacity. This is easily done by adding a sofa-bed and/or pull-out mattresses.
By expanding the sleeping options in your property, you’ll be able to accommodate more guests per booking and make it more attractive to larger groups or families. Not only can you charge extra for additional guests, but more importantly, the visibility of your listing will increase. More listing views equal more bookings.
Hospitable will even send instructions on using the sofa bed to those guests who need them.
Conclusion
As you see, improving the Airbnb occupancy rate takes strategy, effort, and creativity, as there are many different ways to attract more guests and keep your property occupied regardless of the season. Optimizing occupancy is also about making smarter decisions for long-term success.
You should focus on not just increasing occupancy, but on maximizing revenue and guest satisfaction. Then you’ll be able to build a thriving short-term rental business.
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Table of contents
What Is Airbnb Occupancy Rate and Why Does It Matter?
Average Occupancy Rate on Airbnb
1. Reduce your minimum nightly stay
2. Optimize your prices
3. Make your amenities stand out
4. Give special offers
5. Offer special discounts after checkout
6. Upsell free nights
7. Open single nights between bookings
8. Become a superhost
9. Focus on getting good reviews
10. Adjust your listing to reflect the season
11. Get professional photos
12. Respond to guest queries instantly
13. Turn on Instant Book
14. Make your listing business-ready
15. Add extra sleeping options