What Is a Good Occupancy Rate for Airbnb?

Welcome to Airbnb hosting, where knowing and improving your occupancy rate can change your listing from a small income source to a successful hospitality business. Whether you’re experienced or new to hosting, understanding your Airbnb occupancy rate is key. This post explains what a good occupancy rate looks like, what influences it, and practical ways to make your Airbnb more attractive and profitable.

What Is Airbnb Occupancy Rate?

In the realm of short-term rentals, the occupancy rate serves as a pivotal metric, indicating the percentage of time your property is booked compared to the available time it’s listed for rent. A high occupancy rate often reflects strong demand and effective hosting, while a lower rate might signal opportunities for adjustment and improvement. Let’s explore in detail what constitutes a good occupancy rate for Airbnb properties and how to achieve it.

How to Calculate Your Airbnb Occupancy Rate

Calculating your Airbnb occupancy rate is a simple process. Follow these steps to determine your current occupancy rate:

  1. Start by counting the number of nights that your property was booked in a specific time period (e.g., one month).
  2. Divide that number by the total number of available nights in the same time period.
  3. Multiply the result by 100 to get the occupancy rate percentage.
Airbnb Occupancy Rate Calculation

For example, if your property was booked for 15 nights out of a total of 30 available nights in the month of July, your occupancy rate would be (15/30) x 100 = 50%.

What is a Good Occupancy Rate for Airbnb?

The answer to this question can vary depending on various factors such as location, property type, seasonality, and competition. However, according to Airbnb’s own data, the average occupancy rate for hosts is around 50%. This means that on average, an Airbnb property is booked for half of the days in a given month.

But what about successful hosts who consistently achieve high occupancy rates? According to industry experts, a good occupancy rate for Airbnb properties falls between 70-75%. Achieving this level of occupancy requires a combination of factors such as having a desirable location, offering competitive pricing, maintaining a high-quality listing, and providing excellent customer service.


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Why It’s Important To Have A Good Occupancy Rate

A good occupancy rate is really important and not just a number to show off. It tells you how well your Airbnb is doing, and it directly affects how much money you make and whether your Airbnb can keep going strong. To get the best occupancy rate, you want to earn as much as possible while also making sure your guests have a great experience. This balance is key to making your Airbnb successful among many others.

Factors Influencing Occupancy Rates for Airbnb Hosts

While the previously mentioned aspects deeply impact your Airbnb’s performance, understanding the nuanced factors that further influence occupancy rates is essential for any host aiming for success. These elements can range from the nuances of guest experience to the effectiveness of your marketing efforts.

Several factors can sway your Airbnb occupancy rate, including:

  • Location: The location of your property plays a crucial role in determining its desirability and, consequently, its occupancy rate. Properties in popular tourist destinations or trendy neighbourhoods are likely to experience higher demand and occupancy.
  • Seasonality: The time of year also has a significant impact on occupancy rates. Peak travel seasons will naturally bring in more guests and higher booking rates compared to slower seasons.
  • Price: As a host, finding the right balance between competitive pricing and profitability can significantly impact your occupancy rate. Charging too much may turn off potential guests, while setting prices too low could result in missed revenue opportunities.
  • Listing Quality: Your Airbnb listing acts as your digital storefront, and its quality can significantly impact your occupancy rate. A visually appealing and informative listing with high-quality photos, detailed descriptions, and unique features can attract more guests.
  • Customer Service: Providing excellent customer service is crucial in maintaining a high occupancy rate on Airbnb. Satisfied guests are more likely to leave positive reviews and recommend your property to others, leading to potential future bookings.
  • Reviews and Ratings: Good reviews and high ratings are essential for building trust with potential guests and maintaining a good occupancy rate. Guests are more likely to book properties with positive reviews and high ratings, as it indicates a positive experience from previous guests.
  • Airbnb Algorithm: Airbnb’s search algorithm also plays a role in determining your occupancy rate. By consistently meeting or exceeding guests’ expectations and receiving positive reviews, you can improve your listing’s visibility and attract more potential bookings.

Strategies to Improve Occupancy Rates

To elevate your Airbnb occupancy rates and outshine the competition, implementing strategic practices is key. Some key things to focus on include:

Pricing Adjustments

Implement dynamic pricing models that reflect demand changes, ensuring your rates are competitive yet profitable. Tools like Preno’s hotel management software can automate this process, adjusting rates in response to market fluctuations.

Enhancing Listing Quality

Invest in professional photography and craft compelling, detailed listings that highlight your Airbnb’s unique features. A welcoming and accurately described space resonates well with potential guests. Additionally, updating your listing regularly and responding promptly to inquiries can boost your visibility.

Leveraging Airbnb’s Tools and Features

Take advantage of Airbnb’s promotion and flexibility tools, such as last-minute discounts or longer stay promotions, to attract different guest segments. Utilise the Superhost program to boost your credibility and visibility.

Providing Exceptional Customer Service

Provide a memorable guest experience by going above and beyond in delivering exceptional customer service. Quick responses, thoughtful gestures, and personalised recommendations can enhance guest satisfaction and lead to positive reviews and repeat bookings.

Real-World Examples of Successful Occupancy Rate Improvement

Skylark Cabin, owned by Garry and Liz, made a strategic move from Airbnb to Preno for their property management system to enhance their customer experience and boost their occupancy rates.

Garry highlighted the need for a platform that provided more control, stating, “It felt like we had outgrown that platform and wanted to move on to something that gave us more control.” This desire for flexibility and growth prompted their shift to Preno, a decision that proved instrumental in elevating their business.

The seamless integration of Preno’s Channel Manager with various online travel agencies (OTAs) enabled Garry and Liz to expand their reach and attract a broader audience. With over 50 integrated OTAs, Preno empowered the owners to manage pricing and reservations efficiently from a centralised platform, enhancing their visibility in the market.

The transition to Preno not only simplified their operational processes but also streamlined guest communication. Garry emphasised the importance of engaging with guests on a personal level to build rapport and create memorable experiences. However, the limitations of Airbnb’s messaging system led to excessive administrative tasks. Through Preno, Skylark Cabin could interact more effectively with guests, leading to improved guest interactions and a more efficient communication process.

Overall, the success story of Skylark Cabin highlights the transformative impact of leveraging the right property management tools, like Preno, to enhance guest satisfaction, increase revenue, and ultimately boost occupancy rates for their Airbnb.

Discover Skylark Cabin’s Success Story Here.

Additional Resources for Airbnb Hosts

To further empower Airbnb hosts in their quest for improved occupancy rates and guest satisfaction, Preno offers a comprehensive library of resources. These articles cover a range of topics, from leveraging technology for better management to tips on enhancing guest experiences. Here are some must-read articles from Preno for Airbnb hosts:

In conclusion, steering your Airbnb towards a higher occupancy rate intertwines with various factors, from pricing strategies to leveraging cutting-edge tools like Preno. With the right approach, you can elevate your guest experience, ensuring your short-term rental not only survives but thrives in the competitive Airbnb marketplace.

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About the author

Kendra, the Marketing Content Manager at Preno, brings her expertise in Marketing and Communications to help hoteliers stay ahead of the curve. With a deep passion for the industry, she is committed to providing valuable insights and strategies for success.

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