Few metrics are more important to vacation rental hosts than average daily rate (ADR). Learn how much ADRs are expected to grow in 2023 and how you can exceed this forecast with practical tips and tricks.

Airbnb Hosting Tips: How to Boost Average Daily Rates in 2023 | AirDNA

Few metrics are more important to vacation rental hosts than average daily rate (or ADR for short).

ADR is simply industry lingo for how much hosts typically charge guests per day. And it’s something any rental pro, anywhere, can easily track with an accurate data tool.

For 2023, AirDNA is forecasting that ADRs will grow 1.7%, following 5.6% growth in 2022 and 12% growth in 2021.

This begs the questions: Why is ADR growth slowing, and what does this mean for my properties?

First off, lots of variables affect ADRs, from changing seasonality patterns to an influx of new listings (or “supply”) on platforms like Airbnb and Vrbo. In 2023, the main reasons are new economic pressures and concerns around inflation.

(Check out our 2023 Short-Term Rental Outlook report for a deeper understanding of ADRs and economic trends to follow in the months ahead.)

Secondly, it’s important to remember that this percentage—+1.7%—is just an average. Over the coming months, many vacation rental markets will perform well, while others may be more susceptible to economic hardships.

And while some hosts may need to re-evaluate their pricing strategies, others will grow their ADRs compared to previous years—even in otherwise underperforming markets.

We always stand behind our projections, but they don't mean you should jump to conclusions about what will or will not happen in the months ahead. The sky is not falling, and plenty of hosts will still experience measurable ADR growth. For an individual host, it's honestly more productive to use this forecast as a reminder to follow best practices.

None of us alone can control the economy or magically secure bookings. But savvy hosts don’t need magic tricks anyway; they just need the accurate data.

To that end, we want to share seven practical steps you can take right now to boost your ADRs in 2023. And the theme is simple: Go above and beyond to distinguish your listings, exceed guest expectations, and earn an ADR that satisfies your vision (and bank account) as a pro vacation rental host.

Alternatively, think about it this way: Your goal is to find new ways to add real value to your existing properties in order to produce stronger ADRs in 2023 than you did in 2022 and 2021 and so on.

Pay attention to little things you can do affordably that will impact the guest experience and lead to positive reviews. Something like getting new sheets or towels or bed pillows doesn't have to break the bank, but guests will highlight these touches in their public reviews. Take our word for it: Now more than ever, guests are reading reviews to make sure a listing is indeed worth its sticker price.


Re-evaluate your policies, and ask yourself if they’d be attractive to you—if you were your own guest. Becoming pet-friendly, offering shorter stays, or relaxing cancellation policies could help drive bookings. And don’t forget about cleaning fees; they’re a particularly polarizing topic right now among guests.


Don't expect 2023 to be "business as usual." The vacation rental industry is evolving every year, which means you need to be proactive, adapt with it, and pay closer attention to trends than you likely did before.


Make sure your listing photos are excellent, and rotate them seasonally.


Brush up on your local competitors with a benchmarking tool. Specifically, study their amenities. Are the most successful hosts offering something you don’t currently have (a gym, hot tub, creative space, etc.).


Take advantage of seasonal shifts in your market. Every market is different, so use a pricing tool to ensure your rates are rising or falling at the right times.

Airbnb Hosting Tips: How to Boost Average Daily Rates in 2023 | AirDNA

ARTICLE SUMMARY