Understanding the average Airbnb occupancy rate is key for property owners who want to earn more from their vacation rental business.
Knowing how often your vacation rental property gets booked compared to its availability can give you useful information about its performance.
In this article, we will explore the average occupancy rate and share helpful tips and strategies to improve your Airbnb listings.
From calculating average occupancy to exploring market trends and improving guest experiences, we will cover everything you need to know to stay ahead in Airbnb rentals.
What is the Airbnb occupancy rate?
The Airbnb occupancy rate measures the percentage of days a property is booked over a specific period. It’s influenced by location, season, and demand.
Top-performing hosts optimize their listings with competitive pricing, professional photos, and guest-friendly amenities to increase occupancy and maximize revenue.
Why Airbnb occupancy rate matters to property owners
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Occupancy rates are important for property owners like Airbnb hosts and property managers, as they directly impact income and the overall success of a rental business.
Airbnb occupancy rate statistics can help potential investors in short-term rentals by showing them practical ways to improve performance, like making the property more attractive and accumulating positive reviews.
Vacation rental owners and Airbnb property managers should aim for high occupancy rates by pricing right and making their properties more appealing.
High occupancy rates will help you handle booking fluctuations, make smart decisions, adjust strategy, stay competitive and get the most out of your investment in the long term.
How to calculate Airbnb occupancy rate
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You can use this simple Airbnb occupancy rate formula:
Airbnb Occupancy Rate = (Nights Booked / Total Available Nights) × 100%
Start by counting the booked nights. Count all these nights in a specific period, like a month or year.
Next, count the available nights. It is the total number of nights your property was listed and available for booking in the same period. It does not include the nights you blocked off for personal use.
For an easy way, use Airbnb’s Analytics Dashboard, which shows you your listings. Through this dashboard, you can see occupancy rates and other metrics. It will save you time and make calculations easier.
If you prefer the manual way, create a simple table to track your rentals:
Month | Booked Nights | Available Nights | Occupancy Rate (%) |
January | 25 | 31 | 80.6 |
February | 20 | 28 | 71.4 |
Review your data regularly to have a steady Airbnb booking flow. Adjust pricing and availability to increase occupancy.
What is a good Airbnb occupancy rate?
A good Airbnb occupancy rate spans 60-75%, with top performers reaching around 80%.
According to recent Airbnb occupancy rate data, the US average is around 57%, a strong comeback from the pandemic challenges.
It’s a healthy market, but some properties are not fully used, meaning there’s room for improvement to reach the optimal occupancy rate.
Different locations have different averages. Knowing your city’s average and adjusted occupancy rates will help you tailor your strategy. You can get to the ideal rate and increase your vacation rental income.
Review your pricing or marketing if your property’s rate is below average.
How occupancy rates affect rental income and ROI
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Knowing how occupancy rates affect rental income and ROI is important for making the most profit from your Airbnb property.
Relationship between occupancy and revenue
Occupancy rates play a direct role in determining your rental income. Higher occupancy means more nights booked, which translates into more revenue.
However, occupancy alone doesn’t tell the full story; the revenue you generate also depends on your nightly rates and additional charges.
A high occupancy rate combined with low pricing may not result in optimal revenue.
Impact on long-term profitability
High occupancy rates can increase short-term profits, but maintaining those rates consistently is important for long-term profitability. It indicates that people really want your property, which helps you keep making money.
However, fluctuating occupancy might suggest you need to reevaluate your pricing, marketing, or property appeal to ensure long-term success.
Consider both the frequency and duration of bookings to gauge the health of your rental business.
Balancing occupancy and nightly rates
Setting prices too low can attract many customers but may lower total revenue while setting too high can decrease demand and cut down on the number of customers.
Match your rates with market demand, seasonality, and local events to strike the perfect balance. A dynamic pricing strategy can help ensure your property is competitively priced without sacrificing profitability.
Proper management of pricing and bookings will get you positive cash flow and overall success in your rental property.
Market analysis for Airbnb investments
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Understanding the vacation rental market is key to anyone looking to invest in an Airbnb business. Market analysis will help you find the best opportunities and avoid the pitfalls.
Different vacation rental markets have unique occupancy patterns that will affect your investment decisions.
Research potential investment locations
Selecting the right area for your investment property is important. Consider occupancy rates, as they will indicate demand for short-term rentals. Locations with tourist attractions, business hubs or natural beauty will perform well.
Tools for market analysis
Use AirDNA and Mashvisor. These platforms will give you insights on rental properties, including occupancy rates, average daily rates and potential income. You can compare short-term rental markets and make educated decisions.
Factors beyond occupancy to consider
When evaluating vacation rental investments, check local regulations and restrictions. These will limit how you can operate your short-term rental property. You should also look at the potential for property appreciation to gauge long-term value.
Calculate operating costs like maintenance, cleaning and utilities that affect profitability.
Considering these demand and property aspects, you can improve your strategy and maximize your Airbnb returns.
The average Airbnb occupancy rate by location
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Knowing where Airbnb has high or low occupancy will help you decide where to list your properties. This section will look at the cities with the highest and lowest rates so you can see how different markets perform.
Top 5 cities with the highest Airbnb occupancy
Cities with high Airbnb occupancy rates often have vibrant attractions and a constant influx of tourists. Among these, New York City stands out with a steady demand year-round, drawing millions for its cultural landmarks.
San Diego is another high performer, thanks to sandy beaches and renowned events like Comic-Con. San Francisco also often sees high occupancy, driven by its tech industry visitors and iconic sights. Learn more about rental management in California.
Miami attracts many due to its lively nightlife and warm climate, especially during peak seasons. Similarly, due to its famous theme parks, Orlando sees a surge in visitors. Learn more about vacation rental management in Florida.
High occupancy in these cities suggests a thriving local market ideal for property investment.
The five cities with the lowest Airbnb occupancy
On the other hand, some cities struggle with decreased Airbnb occupancy.
Detroit has experienced economic hurdles that impact tourism numbers. St. Louis has lower demand, possibly due to its fewer attractions than bigger cities.
Cleveland doesn’t get as much tourist attention, resulting in lower rates. Milwaukee is low on the list, with limited big event draws to power its Airbnb bookings. Despite its musical heritage, Memphis has lower occupancy outside peak seasons.
Knowing these low-performing areas will help you avoid investing in markets with less potential. Read our guide on the best places to buy Airbnb properties.
Key factors that influence Airbnb occupancy
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Seasonality affects Airbnb occupancy. When planning your strategy, consider local weather and events. During peak season, travelers are more likely to book vacation rentals.
Hiring a property manager can be key to marketing and optimizing your Airbnb listings. Property managers offer professional assistance and provide occupancy metrics which can help maximize rental income.
Your listing is key. Detailed descriptions with high-quality photos will attract more potential guests. It will showcase your vacation rental property at its best and increase your chances of bookings.
The pricing strategy must be competitive. Modifying your average nightly rate will make your property more attractive than others in your area. Keep an eye on what other short-term rentals in your area charge and adjust your rates accordingly.
Knowing local market trends will help you make smart decisions. Some markets are saturated, and it’s harder for new listings to stand out. Focus on growing markets to increase your chances of high occupancy.
The type of Airbnb rental you offer matters. Unique properties like luxury villas attract more guests than standard apartments. Offering something different will make your listing stand out from the competition.
Check guest reviews. Positive reviews will increase your property’s visibility and attractiveness on the Airbnb platform. Ask guests to leave reviews to boost your property’s reputation.
Good management and planning will get you far in the vacation rental business. Apply these tips to increase occupancy and maximize revenue.
Top tips to increase your Airbnb occupancy
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Here are strategic insights to maximize occupancy for your property and boost Airbnb income.
Optimize your listings
Your Airbnb listing must grab attention to stand out from other vacation rental hosts. Use clear and professional photos to showcase the key features.
Write detailed descriptions to highlight the amenities and unique aspects of your property. Consistent updates to your listings will keep them fresh and improve visibility in search.
Include a list of nearby attractions and public transport options to attract potential guests. Check out vacation rental listing management to learn more.
Set your pricing
A pricing strategy is key to success. Use dynamic pricing to change rates based on demand, season and local events. This flexibility will get you more bookings.
Compare your prices with similar active Airbnb listings in your area. Offer occasional discounts or promotions to get bookings during quiet periods. If done right, this will give you an edge in the market.
Improve the guest experience
A memorable guest experience means good reviews, which can, in turn, boost occupancy. Ensure your property is clean, well stocked with quality Airbnb amenities, and matches the description on your listing.
A warm welcome with a small personal touch or gift will get you extra brownie points. Ask for feedback regularly and make changes based on guest suggestions.
Become an Airbnb Superhost, and you’ll get an even better reputation for your property.
Invest in marketing
Promote your vacation rental listing on various online platforms. Social media and travel forums are great places to showcase your property. Post consistently about your property and its surroundings to attract more potential guests.
Partner with local businesses to create package deals that offer value to guests. Use property management software to automate and streamline your marketing.
Implement a last-minute booking strategy
Catering to last minute travelers can be very profitable. Offer discounts or special packages for same day or next day bookings to attract spontaneous guests.
Keep your calendar flexible and available for these bookings. Make sure your listing is set up to handle quick turnarounds without sacrificing quality. This will fill in the gaps in your booking schedule.
Offer long-term discounts
Promote longer stays by giving discounts for weekly or monthly bookings. It will increase occupancy and cut down on turnover, lowering cleaning and maintenance costs.
Highlight these discounts in your listing so potential guests are aware of the savings. Longer stays are great for remote workers or travelers looking for a more comfortable experience.
How to maximize Airbnb occupancy with One Fine Bnb
Maximize your Airbnb occupancy and earnings with One Fine BnB’s full-service property management, powered by an AI-driven platform. We handle everything from guest communication to cleaning and maintenance, allowing you to enjoy passive income.
Our partnerships with major platforms like Airbnb Pro, Superhosts, VRBO, Marriott, Bookings.com, and Expedia ensure maximum exposure for your property. Perfect for busy owners and first-time hosts alike, our service comes with no signup fees – we earn through a commission on generated revenue.
We’ll simplify operations and scale your rental business. Our AI-driven platform:
- Analyzes competitors and adjusts rates based on demand
- Automates timely guest communication
- Tracks and manages reservations from multiple sources
- Boosts your listing’s ranking on booking platforms
- Gives you real-time bookings and revenue insights
It’s risk-free, making outsourced Airbnb property management perfect for anyone who wants to maximize their rental income without the hassle.
Book a free consultation to see how One Fine BnB can make managing your vacation rental easy and profitable.
Airbnb trends and insights for 2025
Travelers are prioritizing environmentally conscious accommodations. Airbnb hosts who use renewable energy and offer eco-friendly options are getting more bookings and better reviews.
More people want places to stay that welcome pets. Guests are looking for properties that provide services and features for their furry friends.
Airbnb is becoming a key player in cultural and live event-driven travel. Properties near popular event venues or those offering unique cultural experiences are seeing higher demand.
With the continuous rise of remote work, Airbnb listings that offer dedicated workspaces, high-speed internet, and long-term stay options are becoming increasingly popular.
Airbnb hosts are using AI to give guests personalized suggestions, make check-in easier, and offer virtual assistant services, which improves the overall experience.
Guests want more diverse experiences, from bustling cities to relaxed beach destinations. This trend is creating new opportunities for hosts in previously overlooked locations.
Health-conscious travelers are seeking places with wellness features like yoga areas, meditation rooms, and natural surroundings.
These trends provide valuable insights for hosts who want to improve their Airbnb listings in 2025 and beyond.
Conclusion about Airbnb occupancy rate
To increase your occupancy rates, focus on locations with high demand. Popular areas attract more guests and more bookings.
Add some appealing amenities to your rental. Fast Wi-Fi, cozy interior and fully equipped kitchen will make your listing more competitive.
Optimizing your listing is also important. Use high-quality photos, write detailed descriptions and update your rates regularly to attract guests.
Using professional property management services will help you maintain high occupancy rates. They will provide valuable insights and tools to optimize your property and manage bookings.
Stay ahead of the game by monitoring market trends. Adjust and update as needed, and you’ll get consistent bookings.
With these tips, you’ll maximize your Airbnb income and become more competitive.
FAQs about Airbnb occupancy rate
What is a good Airbnb occupancy rate?
A good Airbnb occupancy rate varies, but 65% to 75% is generally strong. It means the property is mostly rented, and you get consistent income.
Can I check my Airbnb occupancy rate?
You can check your occupancy rate by dividing the number of booked nights by the total available nights and multiplying by 100. It will give you a percentage of how often your property is booked.
How much does the average person make on Airbnb?
The average income from Airbnb depends on location, property type, and occupancy rate. On average, hosts can make a few hundred to several thousand dollars a month.
What is the Airbnb occupancy rate in Nashville?
Airbnb occupancy rate in Nashville is affected by tourism and local events. Check local market reports or platforms that track city data for the exact numbers.