Airbnb Occupancy Rate in Canada By City

Starting an Airbnb in Canada can be an excellent way to make extra money. According to internal Airbnb survey data, many Canadians turn to hosting to help cope with the rising cost of living or save for retirement. The research also shows that in 2023, the typical Canadian host earned approximately $12,200 by welcoming travelers to their community.

Still, you should understand that the short-term income you can earn by renting out your property varies in different locations. So, it’s essential to research your local market and pay attention to an important metric—Airbnb occupancy rate because it directly affects revenue and ROI.

To help you determine the best cities and neighborhoods that are worth investing in, this article will talk about the Airbnb occupancy rate in Canada in different destinations.

Airbnb Occupancy Rate in Canada: Why Does It Matter?

Turning your Canada-based property into Airbnb can be more lucrative than traditional long-term renting. This way of earning rental income gives property owners more flexibility to adapt to changes in supply and demand. Although many local governments in Canada have strengthened STR regulations, running an Airbnb can be a profitable side hustle.

It can also be an exciting opportunity to build a rewarding and sustainable business if you invest in a property with a high earning potential and are smart about your strategy. That’s why many savvy hosts use vacation rental software like Hospitable, which allows them to automate routine tasks and save time to focus on providing exceptional guest experience and growing their businesses.

When determining the potential profits of your Airbnb property in Canada, measuring the occupancy rate is a must. This key performance indicator measures the proportion of time for which an Airbnb listing is booked compared to the total days when it was available for bookings. The occupancy rate is usually calculated as a percentage on a monthly or annual basis.   

The Airbnb occupancy rates vary by location and season and directly affect how much money hosts can make. Generally, the higher the Airbnb occupancy rate, the more monthly income you generate. However, you should consider other metrics, including average daily rate (ADR).                                                                                                                                               

You should remember that a high occupancy rate doesn’t always translate into a good metric. For example, at the market level, some cities might have a strong demand for vacation rentals, so the occupancy is high, but the average daily rate is relatively low. This results in suboptimal short-term rental income.

And at the individual property level, if you maximize your occupancy, you might be lowering daily rates too much and sacrificing your revenue. So, it’s also essential to set the right Airbnb pricing strategy. Remember that the best occupancy for short-term rental owners is the one that allows them to charge an average daily rate that generates the highest possible income.

Average Airbnb Occupancy Rate in Canada By City

The table below illustrates Canada’s occupancy trends in the first half of 2024. Key Data provided this data—don’t hesitate to work with them for more insights. It includes information about the average Airbnb occupancy rates in different cities and regions of Canada that are popular tourist destinations and attract both domestic and international travelers. You can also find data about average daily rates and RevPAR (revenue per available rental unit)—this metric allows us to track changes in revenue performance over time.

As you see, Canmore has the highest average Airbnb occupancy rate in Canada, which makes this town in Alberta’s Rocky Mountains the perfect destination for an Airbnb host. The average daily rate for short-term rental properties in the region is also among the highest in Canada.

Other cities and regions with the highest Airbnb occupancy rates in Canada are Calgary, Quebec City, Whistler, Edmonton, Montreal, Vancouver Metro Area, and Vancouver Island. Whistler, a picturesque resort town in British Columbia, also has the highest daily rate for private vacation rental bookings, making it a top destination for Airbnb investors.

What Can You Do to Increase the Occupancy Rate of Your Airbnb in Canada?

Property location and seasonality are not the only factors influencing short-term rental occupancy rates. Make your property listings look great and highlight your best amenities to attract more travelers. It’s also important to offer outstanding services to make your guests happy and increase your chances of getting positive reviews.

Listing your property on a single online platform isn’t enough. If you want to maximize bookings for your Airbnb property, you should use different channels to market it, including OTAs such as Vrbo, Booking.com, and Agoda, which can help you reach a wider audience.

It’s also important to create your direct booking website that will help you build strong relationships with your guests and get repeat direct bookings, saving on OTA’s commission fees. You don’t need any technical skills to build your own vacation rental website if you opt for Hospitable and take advantage of our dedicated service Hospitable Direct.

If you create your direct booking website with Hospitable, we’ll also list your STR property on Google Vacation Rentals, which works like a metasearch engine to help travelers plan their trips and find the best accommodation options according to their preferences. Then, travelers can discover your listing through Google Search, Google Maps, or Google Travel.

If travelers decide to reserve your short-term rental property, they will be redirected to your Hospitable website. Google services are free, so you’ll get more direct bookings without paying high third-party fees.

There are a lot of things you can do to improve your Airbnb occupancy in Canada. You may want to download our free ebook covering all the must-have strategies in detail.