As a vacation home owner, there are many things to track to ensure your success. Your occupancy rate is an especially vital key performance indicator. In other words, how many nights you book relative to how many total nights your unit is available. In most cases, the more nights are booked, the more money you’ll make (assuming you’re not charging rock-bottom prices to entice those bookings).
The equation to determine your occupancy rate is simple:
Occupancy Rate = Nights Booked ÷ Total Available Nights
Rarely can a vacation home owner recoup their investment by only booking a few nights here and there, or even for just one season. That’s why maximizing your Airbnb occupancy rate throughout the year is so important.
Want to consistently drive more bookings? Here are expert-backed, actionable tips from Cherry-Host to increase your Airbnb occupancy rate.
1. Buy a home in a top travel destination
The natural first step: Buy a vacation home in an area with year-round demand—from vacationers or business travelers or both. Now’s the time to push your personal preferences aside. Then, turn to data instead (unless you plan on spending more time vacationing there than renting it out).
Another important thing to consider is whether your chosen destination has any restrictions for short-term rentals. Local law, whether that’s at the city, county, or state level—or all three—dictates how you’ll own and operate a vacation rental. Or, if you can own one at all. Plus, don’t forget to look into your homeowners’ association rules for renting out your property.
2. Set competitive rates
The most common (and costly) mistake Airbnb hosts make? Charging static rates throughout the year or only tweaking prices seasonally. Instead, set your nightly rates based on things like:
- Demand
- Peak seasons
- What competitors are charging
- Local events
- Upcoming weather
- Recent trends
These factors can change daily. That’s why Cherry-Host leverages a ton of data points like these to automatically adjust daily rates to fill your calendar. This is called dynamic pricing. The method ensures you’re earning top euros on every reservation at any given time.
3. Aim for 5-star reviews from every guest
Who do Airbnb guests trust the most? Previous guests. That’s why guest reviews matter. Having several stellar guest reviews can convince someone to book your home over another. In fact, our research shows that Cherry-Host homes with 11 or more reviews received 102% more bookings than those without.
Our big tip: Don’t leave reviews up to chance. Or, expect guests to remember to leave a review. To get 5-star reviews, you’ll have to be proactive about creating a 5-star experience from start to finish and asking for a review after check-out.
Another upside to collecting a lot of positive reviews: The more glowing reviews you have, the higher you’ll rank on Airbnb. That ultimately means more visibility and potential for bookings.
4. Offer better amenities than everyone else
After you stock your home with all the vacation rental essentials, invest in extras that will make your home stand out. There are three ways to do this:
A. Cater to who’s likely to book a stay at your home
Do families tend to gravitate to your area? Then, make your vacation home more family-friendly than the rest with items like bunk beds, a baby bathtub, kid-friendly dinnerware, and kid bikes.
B. See what your competition is doing
Do some reconnaissance. Check out similar Airbnb properties and see what they’re offering. Then, go above and beyond.
C. Consider the most sought-after amenities
We dug into which amenities guests look for the most on cherry-host.es. These include a hot tub (these can raise your bookings by 15–20%), a fireplace, and pet-friendliness (homes that allow dogs get 6% more bookings than homes that don’t).
5. Be responsive to guest inquiries
Oftentimes, answering quickly to guests inquiries can mean the difference between getting the booking or losing it to another vacation home—a scenario more likely with last-minute bookings. Guests tend to reach out to two or three Airbnbs they’re interested in. Many times it’s the fastest host who wins the booking. From a guest perspective, a quick response shows that you’re a reliable host who cares about their experience and someone who wouldn’t make them wait if things go awry.
Can’t get back to potential guests fast enough? When you work with Cherry-Host, we’ll handle this communication on your behalf and address all inquiries quickly.
6. Enable Instant Book
Airbnb’s Instant Book is a feature that allows guests to book a stay at your vacation home instantly—skipping the requirement to message you first and wait for your confirmation. According to Airbnb, hosts often get double the reservations since guests enjoy the convenience of booking instantly. Plus, Airbnb boosts Instant Book homes in their search rankings, giving you more visibility, and as a result, more bookings.
