Why Airbnb occupancy rates matter
The rising competition: Why occupancy rates are more important than ever
Occupancy rates in the U.S. are expected to see a modest increase in 2025, driven by steady demand and a stabilizing supply. While this may seem like good news, it also means heightened competition among hosts. A higher occupancy rate across the industry means more hosts and property managers are stepping up their game, making it even harder to stand out.
Moreover, Airbnb is heavily investing in guest acquisition in key markets like the U.S., Canada, France, and Australia, bringing more potential guests to the platform. As the primary channel for bookings, Airbnb’s growing presence and a 19% year-over-year increase in active listings make standing out even more critical. With heightened competition, simply listing your property isn’t enough anymore. Maintaining a high occupancy rate and optimizing your listing is essential to securing visibility and attracting guests.
How Airbnb’s algorithm rewards high occupancy
Did you know? Airbnb and other OTAs prioritize listings that generate the most revenue for them. This means your ranking is influenced by factors like availability, booking probability based on guest search behavior, Airbnb’s accuracy score, reviews, pricing, commission rates, and occupancy.
A higher occupancy rate not only ensures more consistent revenue but also enhances your listing’s visibility on Airbnb. Frequent bookings signal to Airbnb’s algorithm that your property is in demand, increasing its chances of appearing higher in search results. This is why maintaining a high occupancy rate is critical, not just for revenue but for ensuring that your listing stands out on the platform.
Understanding and calculating your occupancy rate for success
So, what exactly is the Airbnb occupancy rate?
Airbnb occupancy rate is the percentage of time your rental is booked on Airbnb over a specific period, such as a month or a year. It’s a key metric for short-term rental hosts to evaluate their property’s performance and compare it to similar listings on the platform. Airbnb calculates this by comparing your actual bookings to your total available nights, assuming full-year availability unless otherwise specified.
Knowing how to calculate the occupancy rate is key to truly understanding how well your property is performing. Here’s how you can calculate it:
Occupancy Rate = (Number of Booked Nights / Total Available Nights) x 100
Start by gathering two key pieces of data from your booking calendar:
- Booked Nights: The number of nights your property was reserved.
- Available Nights: The total number of nights your property was available for booking, minus any blocked dates.
Once you have these, divide the number of booked nights by the available nights and multiply by 100 to get your occupancy rate.
Now that you have a clear understanding of your property’s occupancy and why it matters, the next step is to uncover what influences these rates. In the following section, we’ll dive into the key factors that play a pivotal role in driving your occupancy rate and ultimately help your listing stand out from the competition.
What are the key factors influencing the occupancy rate?
Achieving and maintaining a strong occupancy rate on Airbnb involves more than just listing your property. Several factors play a critical role in determining how often your listing gets booked. By optimizing these elements, you can increase both visibility and conversion, which ultimately boosts your occupancy rate. Let’s explore what factors most impact your success on the platform.
Ranking and visibility:
Your property’s visibility is the foundation of your occupancy rate. If potential guests can’t find your listing, they won’t have the opportunity to book it. Airbnb’s algorithm prioritizes listings that attract attention and convert views into bookings. Listings that show up on the first few pages of search results have the best chance of being seen and booked.
A strong listing with appealing photos, compelling descriptions, and competitive pricing is essential to standing out. But even the best listing can get lost if it isn’t ranking well. Beyond clicks, Airbnb also tracks guest engagement and behavior. If a guest clicks on your listing and engages with it, browsing photos, reading the description, checking pricing, or adding it to their favorites, Airbnb recognizes it as a positive signal and may boost your ranking. On the other hand, if they quickly leave your page to explore other listings, Airbnb takes note, which can negatively impact your visibility.
Conversion rates
Once your listing catches the attention of potential guests, the next step is converting those views into actual bookings. Conversion is a critical part of increasing your occupancy rate, as Airbnb tracks both the quantity of views and the conversion rate.
There are two key conversion stages that you need to focus on:
- From the listings page to your property page: This is where clicks matter. The more people who see your listing and click through to your property page, the better your chances of making a booking. Since this stage determines whether potential guests stay engaged, it’s imperative that every word and picture counts, ensuring your listing captures attention and encourages further exploration.
- From property page to booking: This is where the real conversion happens. If guests land on your property page but don’t proceed to book, Airbnb takes note of this behavior, which can negatively affect your ranking. A higher conversion rate signals to Airbnb that your listing meets guest expectations and is in demand, making it more likely to be promoted in search results.
To achieve a high occupancy rate, hosts need to focus on both increasing views and boosting conversion rates. It's easier to increase views at the impressions stage with strategies like competitive pricing, great reviews, and accurate listings. However, converting those views into bookings is just as crucial.
But how exactly can you increase the conversion rate or improve your listing views? That’s what we’re going to explore in the next section.
How to improve visibility and conversion rates to maximize your Airbnb occupancy
Improving visibility and conversion rates is a multi-step process that requires a well-rounded approach. By focusing on the following strategies, you’ll enhance both visibility and conversion, ensuring you stay ahead of the competition:
Implement dynamic pricing
To stay competitive, your pricing needs to be just right. Implementing dynamic pricing allows you to adjust your nightly rate based on real-time demand, seasonality, and local events making your property more attractive compared to others in your area. Unlike Airbnb Smart Pricing, which automatically adjusts your rates without considering detailed market data, tools like PriceLabs, Wheelhouse, or Beyond Pricing offer a more strategic approach. They analyze market trends, competitor rates, and local events to help you fine-tune your pricing and maximize revenue.
A Revenue Management System (RMS) combined with a Revenue Manager ensures you’re making data-driven decisions, rather than just lowering rates during slower periods. This helps you capture maximum revenue without sacrificing margins. By adjusting your pricing, you can attract more guests during off-peak times and maximize your earnings during peak seasons.
Optimize your listing’s visibility
Visibility is key to getting bookings. Start with engaging, descriptive titles, high-quality photos, and guest-focused descriptions that highlight your property’s best features and also attract the right audience. AutoRank can help you stay ahead by analyzing guest search trends and automatically updating it every 48 hours. It optimizes your listing year-round by integrating seasonal content, ensuring your descriptions stay relevant with local events and trends, helping you capture guest attention and maximize bookings.
For more tips on how to boost your visibility with SEO strategies, check out our recent blog: Airbnb SEO: How to get your Airbnb listing to the top.
Collect positive reviews
Positive reviews build trust and attract more bookings, directly boosting your occupancy rate. Guests rely on past experiences to make decisions, and a strong review history signals reliability. The more five-star ratings you collect, the better your chances of ranking higher and standing out in a crowded market.
To encourage great reviews, consider writing thoughtful comments for your guests, as it can inspire them to reciprocate. Providing exceptional service is key; when guests have a great experience, they’re more likely to leave positive feedback that enhances your reputation and attracts even more bookings.
Once the reviews start coming in, AutoRank can help you make the most of them. Its Review Fusion feature pinpoints what guests love most about your property, making it easier to emphasize your strengths in your listing. It also helps identify common concerns so you can address them upfront, ensuring guests feel confident and satisfied even before they book.
Showcase top amenities
Well-chosen amenities can set your listing apart and attract more bookings. Essentials like fast WiFi and a washer/dryer increase appeal, while unique features such as a pool or a hot tub can give you a competitive advantage, especially in seasonal markets. Cater to your target audience, remote workers will appreciate a dedicated workspace, while families value a stocked kitchen, kid-friendly extras, and safety features like baby gates or outlet covers. Thoughtful touches, such as complimentary coffee for business travelers or local guidebooks for tourists, can enhance the guest experience and lead to better reviews.
Before adding new amenities, focus on the ones that matter most in your market. Check out our blog, The Best Airbnb Amenities Proven to Increase Revenue, for data-driven tips on what guests value.
Increase your Airbnb Accuracy Score
Your Accuracy Score is more than just a single rating, it reflects guest feedback across six key areas: accuracy, cleanliness, check-in, communication, location, and value. Accuracy plays the biggest role, directly influencing value scores, guest trust, and search rankings. A well-optimized listing that delivers on expectations leads to better reviews, stronger retention, and higher booking rates.
To improve your Accuracy Score:
- Ensure photos and descriptions match the real guest experience. Update them regularly to reflect any changes.
- Be transparent about your property's strengths and potential drawbacks, like street noise or limited parking, to prevent surprises.
- Accurately list available amenities and remove or update anything that’s unavailable.
- Maintain strong communication with guests, as responsiveness affects both the communication and check-in categories.
AutoRank helps optimize your Accuracy Score by automatically updating descriptions based on guest feedback and market trends, ensuring your listing remains relevant and trustworthy. It also highlights nearby attractions, enhancing location ratings and making your property more appealing to travelers.
Case study: boosting visibility and conversion rate for higher performance
Casiola, a vacation rental management company with over 300 properties, sought to increase both the number of views and the conversion rate of their Airbnb listings. By optimizing their listings for better visibility with AutoRank and implementing a revenue management system, they achieved impressive results:
- 32,000 more page views per month: Gaining significant visibility despite market competition.
- 19% increase in occupancy: Outperforming the Orlando market, which saw a 7% decline.
- 123% increase in views during summer: A notable boost in visibility during peak seasons.
- 90% occupancy in July: Far exceeding the market average of 52%.
These results highlight how optimizing both listing visibility and conversion rate can drive substantial gains.
Ready to take your Airbnb performance to the next level? Book a demo with AutoRank today to see how we can help you optimize your listings and increase your revenue.