Let’s get straight to the point. There are many factors, big or small, that can influence the number of your bookings, but the fact is, if you know what the major influences are, you can easily improve and work on the small things that might influence your property to be more or less desirable. Let’s go ahead and take a look at what inevitably influences your Airbnb occupancy and what you can do about it.
Research the Market
Overall, everyone loves a good, affordable Airbnb. Which means, you need to be tactical when it comes to pricing. If your rate is low enough for potential visitors, you will have a 90% occupancy most of the time. But first, you have to check out your competition, and set an average price based on what your competitors are doing. Without doing thorough research of the market, you’ll never be able to create a steady flow of bookings, since you’ll be unaware of possible advantages that your competitors might be offering to their guests. Therefore, make sure to always check-up on other rentals as well as hotels in your area.
If you don’t have enough time to do this, or you simply believe that you’re not really qualified to analyse the market, you can always hire a property management company that knows the market top to bottom, and will create the best pricing scheme for your rental property.
Adjust the Prices
Feel free to adjust pricing if there is a major gap between bookings. You can always choose to set up a threshold below which you won’t lower your price, because some hosts feel that it’s better to have an empty unit rather than basically rent it out for free. Another situation when you have to adjust the pricing to get more bookings for your Airbnb is when certain seasons, holidays, or events are coming.
*PRO TIP* If you’re occupancy rate is 30% for let’s say two or three months in advance, what you can do is actually increase your rate, and gradually lower it each week, to create sort of an image that your Airbnb is in high demand. This works well for properties that are near business districts and places where major events take place.
While some Airbnb hosts are confident in the power of bringing in guests with just their location and amazing property, we believe that you should consider influencing your occupancy rate further, by enabling guests to book and access your Airbnb with the greatest of ease.
Guests absolutely love when they have the option to instantly book an Airbnb. It gives them the power to sort things out efficiently, and guests like a clean and swift service.
Another factor that you have to consider is how your guests access your Airbnb. Give them the possibility to check themselves in independently through an app, without having to wait around and you’ll be surprised how many guests will love this. While we do believe that an Airbnb is nothing without a host’s hospitality, we also believe that such an age has come when you have to cater to demands of the fast-paced society. That means faster bookings and an even faster, more independent check-in. No muss, no fuss.
A fantastic location with just the right pricing definitely equals a higher occupancy rate, no matter what time of the year it is. That’s why we think location is everything. When you’re thinking of purchasing or investing in an Airbnb, you need to think in terms of a location, because the place itself is going to bring you bookings when you’re not even asking for it.
Let’s take an example. Are you in a demanding part of town? Because if you are, you can use this to your advantage and play around with prices, in order to get the highest occupancy rate possible. Remember, guests will usually travel to popular destinations but they will book an Airbnb if they feel that the pricing is right. With the right location and the right price, your Airbnb calendar will be pretty full.
Create the picture perfect listing and your booking rate will sky rocket. This is simple to understand. You want to create a listing that will say it all, look great, and attract visitors to book with your Airbnb. Sometimes the sole beauty of the property will influence a potential visitor to click on your listed Airbnb and consider booking it. That’s why you need to invest some time into creating a listing that will stand out from the rest of them and lure those guests in.
You can be located in the most popular city, neighborhood or street and have the lowest price of all, but if you have bad reviews, nobody is going to even consider booking with you, and that’s the harsh reality. That’s why you need to focus on being the perfect Airbnb host, in order to stack up one great review after another and create a good reputation for yourself.
Why are reviews so important when it comes to occupancy rates? Yet again, it’s quite simple. Everyone wants a fast service, a great space, and a trustworthy host they can depend on. If they see this through your previous guest’s reviews, they will immediately like your listing a lot better.
Time of the Year
Living in an area where during certain seasons, due to your proximity to the beach or ski slopes, there’s a higher flow of tourists searching for accommodation, you’re bound to have a higher occupancy rate. This however can fluctuate depending on your pricing strategy. You can use this situation to mark up your prices a bit, if you already know in advance that there will be a high number of visitors coming to your area. Then again, if you’re feeling that a slow season is coming, you can lower your prices a bit to keep your occupancy rate at a certain percentage that’s good for your business.
Overall, the goal of each Airbnb host is to have a high occupancy rate, and not a vacant property. These were some of the major factors that influence how high in demand your property will be and what you can do about it. Do you think there are other aspects of the industry that might influence Airbnb occupancy rates? Feel free to share your experience with us.