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11 Strategies to Dramatically Increase Your Airbnb Occupancy Rate
Maximizing your Airbnb occupancy rate requires a proactive strategy and constant attention to your guests and listings. Read on to find out what strategies and tactics will help you improve your occupancy rate.
Your Airbnb occupancy rate is what determines whether or not your vacation rental is successful.
The occupancy rate is a key indicator for Airbnb hosts, showing the percentage of rental days that are booked. It's essential for hosts to track this as a higher rate often means a stronger rental strategy. Generally, a good occupancy rate varies by location and season, but something in the 60% to 70% range is typically solid.
As Airbnb hosts, you know that the occupancy rate is closely connected to how much revenue your rental property can generate. That means, the higher the occupancy rate, the more money you can make during a certain period. In a nutshell, the higher the Airbnb occupancy rates, the better the rental income.
However, maximizing your Airbnb occupancy rate is easier said than done. To help you boost your occupancy rate, we’ve created a list of the top 10 rental management strategies and tactics.
Read on to find out what steps you need to take to improve your Airbnb occupancy rate and secure more bookings.
1. Consider the Location Before Investing in a Short-term Rental
If you are just starting out, the first thing to consider is the location of your Airbnb investment property. A successful real estate investor will tell you this requires a proactive approach and the potential occupancy rate is the first thing to take into account.
Research the housing market
The rule of thumb is to select properties in areas with the highest demand among travelers. You'll want to look at the average Airbnb occupancy rate in the area, as well as the highest Airbnb occupancy rate to gauge what the potential is.
You can find Airbnb occupancy rate statistics with tools like AirDNA or leverage advanced analytics with iGMS's Market Insights tool. This powerful resource provides real-time insights into pricing trends, the the average Airbnb occupancy rate for a specific area, and competitor performance, allowing you to optimize your pricing strategy and increasing Airbnb occupancy rate.
Consider the Seasons
Try to avoid locations that are highly seasonal that have lower average Airbnb occupancy rates, as they allow you to generate profits only at specific periods. Airbnb occupancy rate data can be useful in figuring this out too, especially when enhanced by the detailed market analytics provided by iGMS.
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Seasoned real estate investors suggest choosing properties in cities that have no restrictions with regards to the number of days hosts are allowed to rent out their short-term rentals.
Finally, check local regulations to comply with the law fully. This way, you will avoid legal issues and will be able to run your business smoothly in the long run.
2. Set the Right Price
Sticking to a well-thought-out pricing strategy can also help you maintain a high Airbnb occupancy rate all-year-round. Start with researching your competitors to price your vacation rental home on a par with them.
Not only should your price be competitive, but it should also cover your expenses to help your business to stay profitable. Savvy hosts suggest changing pricing regularly. The market is always changing. So, why should your pricing stay the same?
A Dynamic Pricing Strategy
Dynamic pricing tools are a must for Airbnb hosts, leveraging Airbnb occupancy rate data to optimize rental income by adjusting prices to match market demands.
These tools adapt to changes such as competitors lowering prices or unexpected shifts in demand, making sure your listing remains competitive. They also make informed recommendations on when to raise rates during high-demand periods to maximize your rental income or reduce them during slower times to attract more guests.
This approach not only tailors pricing to the unique features and location of your property but also keeps it attractive and booked by responding dynamically to market trends. It's about being flexible and proactive, which is essential for maintaining high Airbnb occupancy rates.
In essence, employing a dynamic pricing tool, like DPGO or Beyond Pricing, means your pricing strategy is as adaptable and inviting as your rental space, helping you efficiently manage your listing and seize opportunities to increase revenue during peak times while securing bookings throughout the year.
Moreover, by modifying your pricing to reflect the spikes and troughs in the demand, you can increase your income. If you change the nightly rate regularly, Airbnb pushes your listing to the top of the search results. This way you will increase your listing’s visibility, thus increasing your occupancy rate.
3. Put a Spotlight on Your Best Amenities
To ensure a continuous influx of reservations, you should continuously work on enhancing the guest experience. In addition to good pricing and communication, guests value good amenities.
Identify your target guests and understand their needs. If you get their needs and expectations right, you can add the best amenities to your arsenal.
To let travelers know that you offer the amenities that they are looking for, update your listing’s description. The next step is to add new professional photos showcasing your amenities in the most flattering way. As the saying goes, a picture is worth a thousand words.
So, by putting a spotlight on your best amenities, you can attract more guests to book with you.
4. Screen Your Listings for Outdated Information
If you want to increase your Airbnb occupancy rates, you need to create winning Airbnb listings. Such things as misleading information, typos, or outdated photos will only drive potential guests away.
Your Airbnb listing should include only accurate information. So, it makes sense to update your listing once you make any improvements to your rental or purchase new amenities.
Another great idea to help you boost your Airbnb occupancy rate is to tweak your listing in accordance with the season. Take photos of your garden in bloom or showcase the coziness of your rental during the winter season. Make your listing stand out by uploading new photos that will resonate with your target guests.
In addition to photos, brush up other sections of your Airbnb listing to unlock its full potential. Find the top strategies and best practices in our special guide.
5. Be Prompt in Replies to Your Guests
Being a responsive host is crucial for growing the number of your reservations. In fact, before making a booking, travelers, on average, consider 8 properties and inquire about 5. It comes as no surprise that hosts who reply promptly get more reservations.
While it may seem like a piece of cake, it’s not always possible to respond as soon as you receive a message from a potential guest. This is where automation comes in handy. By taking advantage of vacation rental software like iGMS, you can reduce response time and improve your response rate.
It enables you to create and save templates, and get your messages organized within a unified inbox. It also offers automated messages that can be triggered on preset dates and times for when you need a message to go out on a specific schedule.
This way you will be able to keep your guests updated with the most important information and instructions at all times.
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6. Use Instant Book
If you haven’t enabled the Instant Book feature for your listing yet, it’s high time you did it.
Guests want the booking process to be simple and fast. The easier you make it for guests to book your property, the easier it will be for you to achieve maximum Airbnb occupancy rate. Moreover, it can help you to improve your ranking on Airbnb.
If you are still concerned about enabling Instant Book, Airbnb suggests turning on special requirements that guests should meet to book with you. Thus, guests will be required to submit their government-issued ID and have positive reviews from other hosts to book your rental.
7. Get More Positive Reviews
Quality customer service matters to your guests all-year-round. As a host, you know that meeting and exceeding guest expectations is essential for receiving positive feedback from your guests. In turn, positive reviews help you secure more reservations, resulting in a higher Airbnb occupancy rate.
Finally, to grow the number of positive reviews, make the first move, and review your guests after their checkout. Then, your guests will be prompted by Airbnb to review you in return. A vacation rental solution with a reviews automation feature can also help you increase the number of reviews. For example, iGMS offers review templates and allows you to publish reviews right via the system.
By employing automation, you can optimize multiple aspects of your business and make your daily operations less time-consuming. If you don’t know where to start, read our comprehensive guide, and discover the best ideas on vacation rental business automation.
8. Become an Airbnb Superhost
Obtaining a Superhost badge can open a whole world of new possibilities. Not only will it help boost your ranking, but it will also help to increase your Airbnb occupancy rate.
To become a Superhost, you should:
- Complete at least 10 trips or 3 reservations with a total of 100 nights;
- Maintain a 90% response rate or higher;
- Maintain a 1% cancellation rate or lower;
- Have an overall rating of 4.8.
Listings of Superhosts enjoy higher visibility and look more trustworthy in the eyes of travelers. If you consistently work on enhancing your daily operations, your efforts won’t go unnoticed. Although a Superhost status requires a bit more commitment from your side, it is totally worth it down the road.
9. Revamp Your Vacation Rental Marketing Strategy
Reaching the highest occupancy rate is not possible without a solid marketing strategy. Your other efforts can be in vain if you don’t take any action to promote your rental. Nowadays there are plenty of ways to create a buzz for your rental and generate interest from potential guests. The best course of action is to opt for multiple promotional channels to ensure the most extended reach.
Here are some of the best practices that you can consider using to advertise your property:
- Start an Instagram account and find influencers to work with to gain more exposure for your business.
- Establish local partnerships to create special offers and discounts for your guests. Guests will appreciate an opportunity to take advantage of special offers and will be more prompted to book with you.
- List your property on other vacation rental sites in addition to Airbnb.
- Master your email marketing strategy. Create engaging newsletters, promote your special offers, and reach out to past guests to maintain your Airbnb occupancy rate.
These strategies will help you to increase awareness for your fascinating rental and ensure a steady influx of reservations all-year-round.
10. Plan Ahead for Peak Season to Maximize Your Airbnb Occupancy Rate
Peak season is the time to make the most of your vacation rental business as the average occupancy rate shoots up. For many hosts, this is the opportunity to gain their maximum profits, as the demand for vacation homes soars.
However, managing your Airbnb business can quickly become chaotic during peak season if you don’t plan ahead. In addition, peak season may vary from year-to-year, often due to circumstances that are outside of your control.
You can prepare ahead of time if you take into account how the demand for your listings will fluctuate during the busiest time of year.
FAQ
How Does Airbnb Determine Occupancy Rates?
The number of nights reserved divided by the total number of nights available for booking across the relevant Airbnb listings gives you the average occupancy rate.
The occupancy rate shows how many nights a rental is booked during a specific time period. It's usually measured monthly or yearly and is shown as a percentage.
The adjusted occupancy rate is the percentage of nights booked based on the nights you made available for booking. This makes it a bit different from the regular occupancy rate.
Which Cities Have The Highest Occupancy Rate?
Airbtics’s list of highest occupancy rates in 2023. looks like this:
- Fort Collins: 68% Peak Season: July
- Seattle Airbnb: 76% Peak Season: July
- Memphis : 58% Peak Season: April
- Milwaukee: 60% Peak Season: July
- Ontario, NY : 56% Peak Season: July
- Phoenix Airbnb : 60% Peak Season: March
- Austin Airbnb: 61% Peak Season: April
- San Antonio: 57% Peak Season: July
- Newark, NJ : 60% Peak Season: September
- Houston Airbnb: 56% Peak Season: July
- Fresno Airbnb: 54% Peak Season: July
- Chicago : 66% Peak Season: July
- New York : 72% Peak Season: June
- Boston : 81% Peak Season: October
- Gainesville, FL: 56% Peak Season: August
Final Thoughts
To make your business go a long way, you should always be on the lookout for new strategies to increase your Airbnb occupancy rate. Keeping your property occupied regardless of the season ensures you have a steady income to invest back into the growth of your business. To be able to dedicate your time to scale your business, consider employing automation.
You should be automating as many processes as you can so you'll have ample time to fine-tune the rest of the details that will put your Airbnb listings at the top of search results. iGMS can help you optimize your operations and set your business up for long-term success.
