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How to Increase Occupancy Rates on Airbnb

How to Increase Occupancy Rates on Airbnb

Is your Airbnb occupancy rate a little lower than you'd like? You're not alone.

Due to intense competition and a surge in vacation rentals, Airbnb hosts are finding it increasingly challenging to maintain high occupancy rates for their properties. Occupancy rates are a crucial factor in running a successful Airbnb business.

Considering this, Occupancy rates directly impacts your revenue. Afterall, higher occupancy rates are over time, the more money you stand to make.

Easier said than done — of course.

So let’s get into it. Here’s what we’re taking a look at today:

  • What constitutes an ideal Airbnb occupancy rate?
  • How significant occupancy rates are to Airbnb hosts?
  • 8 most effective tips for increasing Airbnb occupancy rates

What Constitutes an Ideal Airbnb Occupancy Rate?

An outstanding Airbnb occupancy rate is anything above 50%. If the rate is below optimum, it means that over half of the time your short-term rental is available for bookings, it remains unoccupied.

Additionally, if your Airbnb isn’t being properly marketed or the average daily rate is too high, the occupancy rate is likely lower than it should be.

In order to improve the performance of your Airbnb property, you’ll want to strive for an Airbnb rate of 65% or higher.

Before deciding whether a specific listing has a high occupancy rate, evaluate the market average. For instance, in a city where the average occupancy rate is 50%, achieving a 70% occupancy rate is good.

How Significant Occupancy Rates Are to Airbnb Hosts?

How Significant Occupancy Rates Are to Airbnb Hosts?

Enhancing search results

Occupancy rates are one of the many variables that Airbnb's search algorithm takes into account. Also, note hosts benefit from increased exposure and more bookings as a result of high occupancy rate listings having a greater chance of appearing first in search results.

Maximize revenues

More bookings resulting from higher occupancy rates lead to increased revenue for Airbnb hosts. The possibility that a host will continuously earn income hinges on Airbnb's listing ability to consistently sustain high occupancy rates.

Luring prospective guests

Having a higher occupancy rate for an Airbnb listing suggests popularity and being well-liked among guests, therefore encouraging other travelers to make bookings. With that in mind, hosts could draw in more potential guests and grow their Airbnb business by sustaining high occupancy rates.

Guaranteeing profitability

High occupancy rates are essential. But keep in mind that hosts must also make sure their rates are fair but competitive.

Aside from that, all expenses, such as cleaning, maintenance, and utilities, must be included in the rate. Not to mention that hosts must monitor occupancy rates and change prices as necessary to maintain a profit.

8 Most Effective Tips for Increasing Your Airbnb Occupancy Rate

8 Most Effective Tips for Increasing Your Airbnb Occupancy Rate

1. Setting the right price

It can be challenging to strike a balance between setting the price right and maintaining high occupancy. For you to develop an effective short-term rental pricing strategy, it’s important to consider first investigating your competitors’ availability, pricing and nightly rates, seasonality, and cleaning costs.

To remain profitable over time, the price you've set should be both reasonable and sufficient to cover your costs. Also, the use of dynamic pricing helps enable you to set various prices for each night and adjust them in accordance with the season, which contributes to an increase in revenue.

Periodically updating or modifying your nightly cost not only aids in increasing your occupancy rate but also improves your visibility on Airbnb.

2. Picking the best location for your short-term rental

Location should be your top focus when starting out. Find a property where there is a high demand from both guests and businesses by conducting extensive research on the neighborhood housing markets.

And, in order to prevent any future legal hiccups or problems, make sure to also do your homework on the local Airbnb laws and regulations. Not to forget, avoid choosing a location that is particularly seasonal as they only allow you to make profits during certain times of the year.

3. Be distinctive with your amenities

Basic amenities won't cut it when guests have millions of Airbnb listings to select from — especially when most filter their search based on top amenities. Today, travelers seek accommodations that are distinct and offer the conveniences they need.

Also, different guests have different amenity needs whether they are booking a pet-friendly, family-friendly, or even remote stay.

Do some research on your target market or the type of guests you receive. Having this data will allow you to decide what amenities you should invest in and consider, whether it is fast WiFi to Italian espresso. Providing the best amenities that your guest will value will encourage repeat stays and leave blossoming reviews, which is essential for a high occupancy rate on Airbnb.

4. Get more positive reviews

Guests value a high level of customer service. Therefore, the first step for a host to receiving excellent reviews is to go beyond their guests' expectations. Positive reviews not only enhance your occupancy rate but also your ability to book more bookings. Aside from that, reviews are also a terrific way to find out more about the experiences that were provided to previous guests.

What’s more, booking decisions made by guests are significantly influenced by reviews. As a result, it's crucial to make sure you're always available to answer queries from travelers before and during their stay.

After guests leave, take the initiative by reaching out to them via a follow-up email or message to express gratitude for their visit and the same time, not forgetting to ask them for a review as well. Keep in mind that happy guests and positive reviews are just as important as the price.

5. Utilize high-quality and professional photos

The photographs we present have a significant impact on prospective guests' booking decisions. Truth be told, regardless of the words and phrases you use in your descriptions, what attracts attention and directs people to our listings is the initial look at the listing's photo.

Getting a pro to shoot photos of your vacation rental really highlights its best features and pays off in the long run. You might think hiring a professional photographer would be a little pricey, but keep in mind that a picture is worth a thousand words, and it also increases your occupancy rate. So be sure to take photos of every room, interior, and exterior of your property. Also, remember to update photos periodically or after significant renovations.

6. Enable instant booking

Travelers want a quick and simple booking procedure since there are so many vacation rental alternatives. The likelihood of receiving a last-minute booking from potential guests is higher when instant bookings are accessible, but keep in mind that this also improves your occupancy rate and ranking on Airbnb.

Having said that, Airbnb also enables hosts to establish additional requirements that guests must complete before making a booking, such as showing a legitimate photo ID and a significant number of favorable reviews from other hosts. So, if you haven't already, enable the Instant Booking feature.

7. Get ready for the season with your vacation rental

To help raise your occupancy rate at the busiest time of year, tune your vacation rentals up for the holidays. Not only do guests appreciate thoughtful decors, but it also helps you stand out from other short-term rentals and highlight your commitment to keeping your Airbnb in top shape.

Updating its appearance doesn't have to be expensive; a holiday pie for Thanksgiving or champagne for New Year's Eve could add a nice touch, depending on the occasion. Also, don't forget to take photos of your holiday decor and update them to your listing weeks before the holiday bookings.

8. Be a Super Host

Due to the fact that an Airbnb Superhost status represents trust and credibility, most guests limit their search results listings to those with such distinction. Even though it doesn't always directly boost occupancy rates, it gives you a sense of how well you're doing as a host, which unintentionally helps improve it.

Keep in mind that earning a Superhost badge requires more work from you as a host, but the rewards are clearly outstanding.

Are you Maximizing your Airbnb Occupancy?

Are you Maximizing your Airbnb Occupancy?

In general, understanding and raising your Airbnb occupancy rates is the key to running a successful and profitable vacation rental business. That’s why you should always seek out novel approaches such as automating tasks to help raise your occupancy rate while considering that it demands consistent work.

More importantly, look out for a good property management software like Hostaway to streamline every part of your business including guest communication, marketing, services, property management, and channel management, among many others.

It's also important to recognize that maintaining your Airbnb in top condition and offering priceless experiences and memories to your guests is what truly captures your occupancy rate on Airbnb beyond the numbers if you want to stand out from the competition.

Ready to find out how Hostaway can transform your business?

Hostaway is proud to support thousands of Property Managers and Airbnb Hosts Around the world. We take pride in being Top Ranked in Vacation Rental Software Review Sites: Capterra, G2, Software Advice, Trust Pilot, to name just a few! Check out our reviews and read the Hostaway Case Studies from real successful and growing Short-Term Rental Managers!