Starting out on your journey to becoming an Airbnb host in Australia is just as challenging as it is exciting. And if you’re really looking to make your mark in the industry, you’ll need to understand how influence your Airbnb occupancy rate, and how you can shift it in your favour.
In the end, it could actually make or break your short-term rental success.
What is the Airbnb Occupancy Rate?
The Airbnb occupancy rate refers to the percentage of time your property is booked in relation to the total time it is available for booking.
High Airbnb occupancy rates indicate that your listing is popular among tourists and travellers, and probably brings in a steady rental income flow. In contrast, a low rate typically raises red flags and tells you that you need to improve in certain areas.
Several factors, such as location, pricing strategy, quality of photographs, and customer service delivery, can significantly influence your Airbnb occupancy rate. So, potential hosts need to carefully evaluate their own property and the surrounding market conditions before listing on platforms like Airbnb or Stayz.
Bearing in mind the fluctuating nature of the hospitality market, it is also important to regularly review and adjust your strategy in response to changes in this dynamic environment. Doing this means you can optimise your occupancy rate and maximise your profits as you progress through your journey.
How to Know If Your Average Airbnb Occupancy Rate is Good
A desirable property occupancy rate, generally speaking, should always sit above 50%. To put it into perspective, a rate lower than this indicates that your short-term rental is unoccupied for more than half of its availability.
However, if you’re just starting out, 50% is a good Airbnb occupancy rate to aim for. It’s unrealistic to expect the highest Airbnb occupancy rate at this point in time.
From there, set your sights on aiming for occupancy rates of 65% or greater in the future. Given that Airbnb hosts only generate Airbnb income when their property is occupied, striving for higher rates is obviously beneficial.
Before purchasing short-term rentals, investors should always recognise that, like all vacation rental data, the Airbnb occupancy rate is greatly influenced by its location. For instance, the average occupancy of short-term rentals can fluctuate significantly from one city to the next, or even within different postcodes of the same city.
At the same time, a 70% Airbnb occupancy rate might be considered excellent in a city where the average rate is 50%. On the other hand, this would be viewed negatively in a city with an average rate of 80%. It’s all relative.
How to Increase Your Airbnb Occupancy Rate
Aside from the obvious influencer upon your occupancy rate, which is pricing, there are a number of other factors that can help you to increase occupancy rates at your Airbnb.
But getting your pricing right is the best starting point. This is a market driven factor which is always fluctuating. Clearly if you drastically reduced your advertised nightly rate, you will increase your occupancy. But what happens to your overall revenue (and profitability)?
Conversely, you can jack your nightly rates up, but it will likely choke your demand if you take it to high. So, it is about finding the right balance between occupancy and rate so you aren’t leaving money on the table.
Showcase The Perks of Your Short-Term Rental Property
Offering premium amenities can distinguish your Airbnb property from saturated vacation destinations and significantly enhance the guest experience.
This can be as simple as offering high-quality linens and towels to additional perks like a breakfast service or access to an outdoor pool.
Prioritising these add-ons focusing on customer satisfaction can significantly improve your Airbnb’s attraction factor, leading to higher occupancy rates.
Remember, an Airbnb experience goes far beyond the property itself and includes the entire guest experience. So, make your guests’ stay memorable with thoughtful services that they’ll appreciate and share in their reviews.
Capitalise on Unique Features of Your Property
Standing out in the competitive landscape of Airbnb, hosting in Australia is a must. But to do this, you need to take full advantage of the unique features that set your property apart from others.
For instance, if your residence includes an indoor pool or a charming outdoor dining area, these are aspects worth highlighting in your listing. These unique selling points make your property more enticing to potential guests.
Additionally, it’s good to incorporate experiences that reflect the locale. If your property is located near a renowned surfing spot, for example, offering surf lessons could be a hit with visitors.
Remember to think about the kind of guests you wish to attract. Tailor your listing to their preferences.
Working or studying remotely has become increasingly common nowadays. If your property has a dedicated workspace, this may appeal to professionals and students alike who are travelling as they go about their daily work.
Other popular highlights include:
- Instant booking facility: Position your property as easily accessible by offering an instant booking facility. This can add convenience for potential guests and increase your listing’s appeal.
- Promotion of special deals: Use promotions to highlight your property during low seasons or special events. This is an engaging method to attract guests on a budget or those looking for a unique experience.
- Variety of quality furniture: Variety in quality furniture adds a touch of personal charm and ensures a comfortable stay, encouraging positive reviews and repeat bookings.
- Positive sleep experience: Invest in quality mattresses, pillows, and blackout curtains to provide a good night’s sleep, often a top priority for travellers.
- Inclusion of essential Airbnb amenities: Essentials like Wi-Fi, shampoo, towels, and light snacks can significantly enhance the guest’s experience. Showcase these in your listing to inform potential guests of the comfort that awaits them.
- Maintenance of updated listings: Regularly update your listing with any property enhancements or added amenities. This demonstrates continuous improvement and maintenance, increasing the credibility of your offering.
- Local attractions: Showcase local attractions or unique experiences available to guests within your Airbnb’s vicinity. This can serve as a unique selling point and significantly attract travellers interested in local culture or adventure.
Average Airbnb Occupancy Rates in Australia
According to Airbnb occupancy rate data, the average in Australia is around 65%.
This figure is a crucial indicator to gauge the performance of Australian Airbnb rentals and serves as a benchmark for aspiring hosts.
However, historical trends and reports indicate that the average Airbnb occupancy rate in Australia varies largely, depending on the location and the time of the year. For instance, popular tourist destinations such as Sydney, Melbourne, and Gold Coast often see peak occupancy rates during the holiday season. In quieter regions or less touristy areas, the average occupancy rate is lower.
Our top tip is to focus on your location and what you should expect for seasonality and overall booking averages. If you’re on the Sunshine Coast, it’s likely you’ll have year-round ‘traffic’, whereas somewhere more rural may fluctuate – it pays to know what to expect.
If you’re struggling to know what to forecast for your short-term rental, the property managers at GrowHOST can help you create a roadmap, budget for the future, and boost your property’s occupancy rate.
Key Takeaways
- Maximising occupancy rates on Airbnb requires a thorough understanding of the platform and a commitment to providing exceptional service.
- Writing engaging descriptions and providing memorable guest experiences can significantly impact your Airbnb occupancy rate.
- Acknowledging both positive and negative reviews is an essential part of building a successful Airbnb operation. A thoughtful response to a less-than-perfect review shows a dedication to improvement and customer satisfaction.
- Guest reviews play a crucial role in influencing future bookings; hence, an emphasis on providing excellent service is crucial to achieving desirable reviews.
- Continuous learning and an open mind are indispensable characteristics of successful Airbnb hosts, as the vacation rental landscape is continuously evolving.
- Being proactive in making adjustments based on guest feedback and market demands can significantly enhance the appeal of an Airbnb to both local and international travellers.
