What should you know before becoming an Airbnb host? As a host, how can you make the most of your earnings? Understanding Airbnb’s average occupancy rate is for starters. There are many insightful queries involved what do occupancy rates cover, and how do they differ between property classes? Don’t worry because we’ve got you covered on how to calculate Airbnb’s average occupancy rate as well as the strategies to maximize it in your short-term rental service.
What is the average occupancy rate on Airbnb?
The occupancy targets on bookings that a property is expected to meet are known as the average occupancy rate on Airbnb. This target determines the rental property’s open nights. For a host, it is a level to measure one’s achievement and it can assist them to set their rates intelligently.
How to calculate the average occupancy rate on Airbnb
Just as calculating other types of statistics, an occupancy rate can be calculated utilizing the formula:
Occupancy rate (%) = (total available nights/ booked nights) X 100
A practical example would be, let’s say you own an Airbnb that can be booked for 30 days in a month, and in this scenario, it was reserved for 20 nights.
(20/30) X100 = 66.67%
Factors That Influence the Average Occupancy Rate on Airbnb
1. Location
The airbnb average occupancy rates depend on where the rental is located. Rentals in cities along with famous tourism hotspots have a higher overall occupancy rate compared to rural locations and areas that receive fewer visitors.
2. Seasonality
Year-round, Airbnb’s average occupancy rates fluctuate due to specific season needs. Beachfront rentals, for example, tend to be the most occupied during summer while ski resorts do better in winter.
3. Pricing Strategy
Maintaining competitiveness in pricing is crucial to keeping an Average Occupancy Rate that Airbnbs would like to have. In many instances, hosts that change their prices according to seasonal demand and the condition of the market will receive more bookings.
4. Listing Quality
A guest-centric approach in setting up the listing with professional photos and a comprehensive description, plus showcasing previous positive reviews usually guarantees better occupancy rates. Travelers reserve more often those rentals that look appealing and well cared for.
5. Amenities and Features
Providing these essentials along with luxurious ones such as free wi-fi, air conditioning, a fully equipped kitchen, or even a workspace can boost the chances of booking rates significantly.
6. Marketing and Promotion
Catch more views and improve the Average Occupancy Rate by using social media, travel blogs, and Airbnb SEO strategies.
What Is a Good Occupancy Rate for Airbnb?
A reasonable Average Occupancy Rate on Airbnb will vary from region to region and based on market circumstances. Nevertheless, most successful Airbnb operators anticipate an occupancy level between 65% and 75%.
The following are the general benchmarks of average occupancy on Airbnb:
Less than 50%: Attention needed
50% – 65%: Acceptable
65% – 75%: Satisfactory
75% – 90%: Wonderful
More than 90%: Outstanding but possibly prices are set too low
How to Improve Your Average Occupancy Rate on Airbnb
1. Optimize Your Listing for Airbnb SEO
In your title and description, include relevant words so that your listing ranks higher in search results. Some examples are:
“Large Apartment In Downtown – High Occupancy Rate!”
“Luxury Beachfront Condo – 80% Average Occupancy Rate On Airbnb!”
2. Use Dynamic Pricing Tools
Tools such as PriceLabs, Beyond Pricing, and Airbnb Smart Pricing change your rates according to demand making sure your pricing is competitive and your occupancy remains high.
3. Encourage Positive Reviews
The experiences shared by guests influence the decision to make bookings. To improve your rating, offer a great experience, respond to questions quickly, and ask guests to leave reviews.
4. Leverage Social Media and Digital Marketing
Share your venture on social media, travel bloggers, and community listing pages. Influencers in this niche will surely give you a boost within the audience.
5. Offer Discounts and Special Deals
Targeting first-time guests, guests looking for long stays, and offering last minute deals would also help you fill those empty nights and increase occupancy.
6. Enhance Guest Experience
Enhancing guest experience can occur with a well-maintained property that includes a welcome basket, guidebooks, and efficient check-in/check-out processes which will encourage repeat bookings and higher occupancy.
Airbnb Occupancy Rate by City and Country
There is a different level of occupancy per city or country. For instance:
New York City, USA: 75%
France- Paris: 80%
Tokyo, Japan: 70%
Sydney, Australia: 72%
Indonesia- Bali: 85%
If you invest In an Airbnb property, knowing the Average Occupancy Rate on Airbnb in that location is beneficial.
Comprehending and enhancing the Average Occupancy Rate on Airbnb is essential to achieving success in the short-term rental business. If you know how to apply the right Airbnb listing strategies, adjust your pricing, and improve guest experience, occupancy rates, and revenue will grow markedly.
For more information regarding short-term rental strategies, you can proceed to ShortTermRentalDictionary and learn more about how to earn more on Airbnb rentals.
Would you like assistance in improving your Airbnb listing? Reach out to us to improve your Average Occupancy Rate on Airbnb.
