Airbnb Occupancy Rates: Boost Bookings and Revenue

Airbnb occupancy rates are one of the most integral data to consider in the short term rental business and immediately links to the annual revenue and rental income of the Airbnb. To new or veteran property managers alike, it is the central data to examine to assess whether or not one is running a successful Airbnb. Since most sites such as AllTheRooms analytics or AirDNA provide average Airbnb occupancy rates in popular neighborhoods, Airbnb hosts can compare their occupancy rates to these statistics to see how well their listings are doing versus their competition.

This blog will introduce the reader to how to calculate or collect the Airbnb occupancy rate data from listing sites while also providing some suggestions on how to maintain high Airbnb occupancy. This blog should complement well with our Best Airbnb Market blog to not only understand the importance of good occupancy rates but to see how it is essentially used to evaluate promising locations for the short term rental market.

What is an Occupancy Rate?

An occupancy rate shows the amount of time an Airbnb rental was booked compared to the time that it was available for booking. As such, calculating occupancy rates for Airbnb rentals is very straightforward. All one needs to do is divide the total number of nights that the Airbnb properties were booked by the number of total nights available for booking. 

For example, if a vacation rental was booked for one hundred and thirty days and the property was available for the entire year, the occupancy rate would be one hundred and thirty divided by three hundred and sixty-five days, which will land us around a 32% occupancy rate for that Airbnb property.  

What is a Good Occupancy Rate?

In general, a “good” occupancy rate for a host is when their active Airbnb listings have an average occupancy rate of 70% or higher. A host should however consider a few factors instead of immediately making judgements on their short term rentals’ performance. For instance, the average occupancy rates for specific neighborhoods vary and it may be a more reliable metric. Furthermore, certain neighborhoods have peak seasons, where hosts that only open up their rental property for that specific time window may lead to high occupancy rates due to the low number of days that it is open for booking. 

As such it is essential for hosts to do extensive research on short term rental data and Airbnb statistics of their neighborhoods and see the relevant trends to assess how well their vacation rentals are doing. If the vacation rentals are showing higher occupancy rates than the competition, then the host is doing something right. Vice versa, if certain vacation rentals are showing the lowest occupancy rates in the neighborhood, this is a sign for the host to examine their Airbnb data to see what is leading to the property’s underperformance.

Average Airbnb Occupancy Rates by City (United States)

Here is a list of real estate regions around the United States with high occupancy rates:

1. Maine DownEast/Acadia Coastal: 67.7%
2. New York City: 65.5%
3. Denver: 65.3%
4. Anaheim, California: 65.2%
5. Boulder, Colorado: 64.3%
6. Port Royal, South Carolina: 52%
7. San Diego: 64.2%
8. Sarasota, Florida: 64.1%
9. Lincoln City/Newport, Oregon: 64%
10. Gatlinburg/Pigeon Forge, Tennessee: 63.9%

Average Airbnb Occupancy Rates by City (Australia)

Here is a list of real estate regions around Australia with high occupancy rates:

1. Melbourne: 68%
2. Sydney: 78%
3. Gold Coast: 77%
4. Perth: 84%
5. Sunshine Coast: 72%
6. Brisbane: 79%
7. Adelaide: 71%
8. Central Coast: 47%
9. Geelong: 52%
10. Cairns: 75%

Ways to Boost Your Airbnb Occupancy Rate

Now that the hosts know the importance of managing their vacation rental property’s occupancy rate in the Airbnb business, here are some tips on how to raise occupancy rates while minimizing vacancy rates in the process.

List on Multiple Sites

Casting a wide net by registering the hosts’ Airbnb properties across various booking sites will create more visibility. Better yet, create a direct booking website to create personalized discounts for loyal customers while creating a community around your vacation rental business.

Use High-Quality Photos

Nothing convinces potential guests to click on a listing than beautiful, attractive photos of the rental property. Property owners should invest in getting high-quality photos not just for the booking sites but also for social media posts.

Provide a Unique and Accurate Listing Description

The high-quality photos should be complemented with a comprehensive, concise description of the Airbnb. Make sure to write down the property type and available amenities to be fully transparent to the guests and allow them to compare the property with others in the relevant listings. 

Enable Instant Booking

Some owners like to approve of the potential guests, but this means that the guests often have to wait hours, if not days for the approval. Consider enabling instant booking for verified users. Also, make sure to create reasonable cancellation rates so that the guests are aware of the commitment they are making whenever they agree to book the vacation rental.

Use Dynamic Pricing

Adding additional services through upsells is one of the best ways to enhance the guest experience by giving them the agency to customize their stay. A flexible pricing strategy can make sure that the original listing has competitive pricing while additional amenities are offered to people who wish for more.

Making it clear that the daily rates can be adjusted is essential to effective pricing strategies and one would see that the average daily rates for vacation properties will likely increase due to the guests opting into attractive upsell offers.

Generate Positive Reviews from Guests

Encouraging guests to leave positive reviews would make listings more attractive for potential guests. Remember also to consistently review the guests as a host as well since it is an essential step towards the Superhost status in Airbnb.

Automate Your Business

“Plenty of time” is never a phrase that can be used by property managers. AI can help streamline day-to-day tasks through automation. For example, it can aid with tenant communication as virtual assistants, answering basic questions such as repair procedures and also sending reminders for rent payments. Integrating smart home features into the managed properties can also allow property managers to check the status of their managed properties without extensive, in-person visits.

Automating routine tasks with AI systems comes with the additional perk of being able to divide property management tasks more efficiently so that crucial tasks that require a human touch such as property valuation and customer service for tenant retention can gain more operational efficiency.

HostAI is an AI-powered support platform designed to streamline property management communications across multiple channels, including email, WhatsApp, SMS, and more. HostAI enables property managers to centralize guest, tenant, and team communication within one flexible inbox.

It also provides a robust AI messaging feature that can automate routine tasks like booking assistance, upsells, and maintenance requests, while seamlessly handing off more complex inquiries to human staff when needed. By integrating with the host’s knowledge base, we allow the host’s team to easily search and find the right information from their knowledge base, further enhancing communication efficiency.