April saw a slowdown in demand for European short-term rentals due to Easter's early occurrence, affecting occupancy negatively despite an increase in listings. There’s reason for optimism, though, with strong booking growth and demand for summer across various European countries.

European Market Review: April Setback Offset By Year-Over-Year Growth in Summer Demand

With Easter’s shift to March, April demand took a tumble last month. Demand nights across the European continent totaled 29.7M, rising 1% year-over-year (YOY). Compared to March’s 28.8% YOY increase in demand, however, this was a steep decline.

Despite sluggish demand, listing growth did not slow. Listings increased 15.7% YOY in April. With listing growth in the double digits and weak demand growth, occupancy declined 11.7% last month. This represents a sharp reversal from the 10.4% occupancy growth we saw in March. 

At a Glance: April STR Performance in Europe

Available listings were up 15.7% year-over-year (YOY)

Average daily rates (ADR) rose 5.2% YOY to 165 €

Occupancy was down 11.7% YOY and down 14.1% compared to 2019

Looking at short-term rental (STR) performance for both March and April, we see performance align with overall growth trends we’ve seen in Europe this year. 

Demand growth over the last two months averaged 12.5% YOY while available listing growth averaged 17.7% YOY. With listing growth far exceeding demand growth, occupancy dipped 2.6% YOY but average daily rates (ADRs) kept growing at a rate of 7.2% YOY. 

Average daily rates (ADR) rose 7.2% YOY to 163 €

Occupancy was down 2.6% YOY and down 7.3% compared to 2019

Your vacation rental may be amazing, but is it better than your competition? Connect your Airbnb listing to AirDNA to see its Booking Performance Score

The European economy avoided recession in 2023 with an annual GDP growth of 0.4%. In its macroeconomic projections report in March, the European Central Bank (ECB) forecasted 0.6% GDP growth for the European economy in 2024, a slight decline from its December projection of 0.8%. The first quarter of 2024 saw GDP growth of 0.3%, but growth is expected to pick up in the second half of 2024.

The ECB maintains that private consumption will continue to be the main driver of economic growth in 2024. Private consumption is expected to increase by 1.2% due to declining inflation, a resilient labor market, and growing household disposable incomes.

As of April 2024, inflation for the Euro area stood at 2.4%. The ECB projects that inflation will decline from an average of 5.4% in 2023 to 2.3% in 2024. Employment growth was 1.4% in 2023 and, while 2024 will see a slowdown in growth, total employment is still expected to grow 0.5%. The ECB predicts that wages will grow by 4.5% in 2024 thanks to continued strength in the labor market. 

Growth in STR demand and booked nights thus far in 2024 also offers good reason to be optimistic about more disposable income and consumer spending this year. Both nights stayed so far and nights booked for future travels have been at all time highs for European STRs. The year-to-date growth in nights stayed averages 12.8% YOY and growth in booked nights averages 17.5% YOY.

Listing Growth Continues to Climb while ADR Growth Declines

With summer just around the corner, the number of listings on the market is ramping up quickly. Available listings totaled 3.4M in April, up 7% compared to March. New listings continue to add fuel to supply growth. The European continent added 137K new listings last month, which made up 4.3% of all available listings in April. 

New listings can sometimes shift aggregate ADRs in a market. Our repeat rent index (RRI) isolates the performance of existing properties and removes the effect of new listings. By comparing RRI to the ADR performance of new and existing properties (mix shift), we’re able to identify how new properties impact total market performance. 

So far for 2024, we’ve seen similar growth rates for RRI and ADR for Europe. This indicates that new listings are charging comparable nightly rates (ADR) to existing supply. 

However, ADR and RRI growth this year has slowed significantly compared to summer and fall of last year. In the second half of 2023, YOY ADR growth averaged 12.3% while RRI growth averaged 11.4%. With declining occupancy chipping away at the pricing power of hosts, averaged YOY ADR growth has slowed to 7.1% while YOY RRI growth has averaged 6% so far in 2024.

Among the top 20 European countries, year-to-date ADR growth ranges from -6% to 15% year-over-year (YOY). 

Countries that are leading YOY ADR growth so far this year are: 

In all three countries, more expensive new listings are playing a big part in driving up overall ADRs in the market. In Denmark, for example, ADR growth for the overall market is an impressive 15.5% YOY. RRI growth, which only looks at pricing power changes for existing hosts, is more modest at 8.4% YOY. 

In Portugal, rates for existing properties (RRI) have grown 9% YOY but rates for the overall market (ADR) have increased 14% so far this year. 

Countries that have lagged in ADR growth YOY so far in 2024 are:

In all three countries, the rate at which new listings are being added outpaces demand. The result is crippled occupancy and lost pricing power for hosts. New vacation rentals are entering the market at lower rates, driving down overall ADRs in all three countries. 

In Croatia, for example, rates for existing properties have declined 0.6% YOY. Overall rates in the market, however, have declined 6.4% so far this year. 

The two countries that are seeing the greatest difference between RRI and ADR growth are Switzerland and Finland. 

In Finland, new supply growth has largely favored larger properties in the last year. RRI has seen a modest 2.1% YOY increase, but the larger and more expensive homes coming onto the market have driven overall ADRs in Finland up by a significantly larger margin of 11.3% so far this year. 

In Switzerland, new STR listings tend to be for smaller properties, which has lowered overall ADR growth of the market to 9.2%. Existing properties, on the other hand, have seen an impressive 25.5% YOY growth thus far this year. 

Gain insights into the revenue and occupancy trends in your market.

ADR growth and occupancy growth are what comprise growth in revenue per available rental (RevPAR). With occupancy down year-over-year (YOY) in almost all of the top 20 European countries, ADR growth has largely been the driver of RevPAR growth. 

Countries that have been lagging in ADR growth so far this year are seeing the weakest RevPAR growth. On the flip side, countries that have seen strong ADR growth are seeing RevPAR gains. 

Spain is the only country that has seen both ADR and occupancy growth in 2024. It’s leading Europe with RevPAR growth of 13.5% YOY. 

2024 Summer Is on Track to Beat 2023 Demand

Summer is just around the corner, which means the biggest season for European STR travel is almost here. Last year, stays during the summer months of June, July, and August made up 37.3% of total demand nights. Earnings during the summer months of June through August made up 40% of all short-term rental (STR) revenue in 2023. 

Current demand pacing for Europe is pointing to another record breaking summer for STRs. Pacing is the rate at which reservations are made for a particular date in the future.

Demand on the books for June through August is up 19% YOY.

June and July are both seeing 17% YOY growth in demand pacing while August is seeing 22% YOY growth.  

Among the top five countries that are seeing the most YOY demand pacing growth, a familiar list of northern and eastern European countries are taking the lead: 

Among the bottom five countries where demand pacing is lagging, we have a mix of countries where demand has been lagging over the last year (Ireland, Croatia, and the Netherlands) as well as countries that saw impressive demand growth last summer (Italy & Portugal). The latter group is potentially seeing a slowdown in demand growth this year.

Looking at pacing for 50 European cities, we’re seeing several Eastern European capitals as well as Spanish cities ranking in the top 10 for demand pacing growth this summer. At the bottom of the list are several Croatian cities as well as a few Italian cities. 

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Many Summer European Stays Have Yet to Be Booked

What we’re seeing for demand on the books right now is only a fraction of what we might see as we get closer to the summer travel months.

In Europe, the second week of August is typically when STR demand reaches its peak of the year. When we look at the booking curve for the second week of August last year, we see that at this time last year (about 90 days out), only 46% of stays had been booked for that week. 

By 60 days out, 60% of stays for August 7-13 were booked. By 30 days out, 75% of stays were reserved. The remaining 25% of stays for the second week of August were booked within a month of the stay. 

When a large percentage of stays are booked within 60 days of the stay, it means that the demand we’re currently seeing in a market can change significantly as the dates we’re analyzing approach. 

If this year’s booking curve for the second week of August is similar to last year’s, then more than half of stays for the second week of August have yet to be booked. Current demand on the books is 20% higher than the same time last year, but that may change as the second week of August gets closer.

Pacing for booked rates is also showing promising returns for STR hosts this summer. ADRs are currently pacing 9% higher year-over-year (YOY) for June through August. 

The destinations with the greatest ADR growth include a few countries that have also seen strong demand growth so far this year:

The countries that are seeing more modest growth in ADR pacing this summer have been seeing occupancy declines chip away at pricing power: 

For those of you that haven’t booked your European travels yet, explore the following snapshot of how summer ADRS are currently looking across Europe. It can give you an idea of some of the cheapest and most expensive countries to travel to this summer. 

Southern European destinations will likely cost you a pretty penny to travel to this summer, but eastern Europe might be a good option if you’re looking to ball on a budget. 

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AirDNA’s vacation rental pricing tool uses data-driven recommendations to propose the best daily rates.

The European STR market experienced an April dip due to Easter's shift, but strong summer demand across key countries is set to reignite the industry.

Airbnb Occupancy Rate: Insights and Tips

Key Takeaways
The Airbnb occupancy rate is a vital metric for success and is calculated by dividing the number of booked nights by the available nights. The occupancy rate reflects how often your property is rented out compared to its availability.
Understanding and monitoring your occupancy rate is key to maximizing earnings, as it indicates property performance and influences pricing and marketing strategies.
How you interpret your occupancy rate is essential; high and low occupancy rates don’t always mean what you think.

Successful Airbnb hosts are obsessed with bookings, and for good reason—it’s the name of the vacation rental game.

When hosts talk about Airbnb bookings, they're really talking about occupancy rate: the percentage of available nights that guests book. Monitoring your occupancy rate is important because it shows how well your Airbnb stacks up against the competition. The occupancy rate can also indicate whether you need to switch up your strategy or pricing to boost your rental income.

Whether you’re new to short-term vacation rentals or an industry expert, it’s important to understand the methodology and best practices behind your occupancy rate. 

Learn about short-term rental data

What is Airbnb Occupancy Rate?

In its simplest form, the occupancy rate is the percentage of time a vacation rental property is booked compared to the time it is available for bookings. 

To make understanding occupancy rate easier, let's use a straightforward example.

Imagine you own a cabin that's available for guests all year. That means it could potentially be booked for 365 nights. Throughout the year, guests book your cabin for 90 of those nights. We can use that number to calculate the occupancy rate and see how often your property was rented out compared to its availability. 

By dividing the booked nights (90) by the total available nights (365) and multiplying by 100 to get a percentage, we find an occupancy rate of approximately 25%. This means your cabin was rented out for about a quarter of the year.

Reasons Why Your Occupancy Rate Matters
Maximize Revenue Potential: Physical products can be sold at any time if they’re not immediately purchased. However, a vacant vacation rental represents a unique challenge. If a property goes unbooked for a night, it's impossible to "sell" that night again. Each unbooked night directly translates into a tangible loss of potential income. That’s why the occupancy rate is crucial for owners looking to maximize their earnings. 
Reveal Property Performance Insights: Consider two similar properties in the same location. Property A consistently achieves an 80% occupancy rate, while Property B struggles to reach 50%. This stark difference signals that Property A might be better aligned with guest preferences or have better marketing. Analyzing occupancy rates helps identify performance gaps and areas for improvement, whether that's improving your listing or adjusting pricing strategies to meet market demand.
Determine Market Demand and Inform Pricing Strategies: High Airbnb occupancy rates indicate strong market demand, while low occupancy rates can reflect lower demand. This information informs your pricing strategy. Let’s consider an apartment near a convention center that has high occupancy during events but low occupancy rates otherwise. This trend suggests that you may want to consider adjusting your rates in relation to the convention center’s event calendar. Dynamic pricing takes into consideration trends like this and uses them to optimize revenue during peak and off-peak times.
Guide Investment and Enhancement Decisions: Evaluate occupancy rates before and after making upgrades, like installing high-speed internet or renovating the kitchen, to assess the return on investment (ROI). This analysis is crucial for prioritizing property improvements that make your listing more appealing and, subsequently, improve the occupancy rate.

Learn about Dynamic Pricing

How to Calculate the Airbnb Occupancy Rate

Understanding the occupancy rate of your Airbnb property is pivotal for optimizing your rental strategy. Yet, it all comes down to a single equation.

Airbnb Occupancy Rate Calculation

Reserved Days / Available Days x 100 = Occupancy Rate

With that in mind, here's a simple guide on how to find Airbnb occupancy rates:

Step-by-Step Calculation
Determine the Total Number of Reserved Days: Start by counting how many days guests booked your property over a specific period of time, usually 12 months. 
Identify the Total Number of Available Days: Calculate the total days your property was available for booking over the same time period, excluding any days you blocked off for personal use.
Calculate the Occupancy Rate: Divide the total number of reserved days by the total number of available days, then multiply the result by 100 to convert it into a percentage. These steps represent AirDNA’s version of an Airbnb occupancy rate calculator.

Example Calculation:

Imagine you own a house on the water in North Carolina and you're evaluating its performance on Airbnb over the last 12 months. The property was available for 340 days and booked for 240 days within this timeframe.

Reserved Days: 240

Available Days: 340

Occupancy Rate Calculation: 240/340 x 100 = 70.58%

Calculate potential earnings

Understand the investment potential of any address in the world. 

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Interpreting Your Occupancy Rate

While a 70% occupancy rate may seem ideal, signaling guest satisfaction and consistent revenue, it's essential to delve deeper. High occupancy could indicate underpricing, meaning you might be missing out on potential income. It's crucial to balance occupancy with your average daily rates (ADRs) to maximize revenue. 

Think about it: A property with a 50% or 60% occupancy rate could earn more revenue than one that’s booked 70% of the time. It’s all relative to pricing. A property booked more often at $100 per night may not outearn a property that’s booked less often at $300 per night.

It’s important to ask yourself: Do I want higher occupancy or higher average daily rates (ADRs)? An accurate data tool can help you sort out which strategy is best for your bottom line. (Why guess when you can know exactly what you should be charging guests?)

What is a Good Airbnb Occupancy Rate?

Average Airbnb occupancy rates vary from market to market and year to year. You can see how the national average occupancy rate has fluctuated:

Trailing twelve months (TTM), March 2023 to February 2024: 55.1%
2023: 55.4%
2022: 58.6%
2021: 60.3%

The occupancy rate in 2022 reflects a recovery trend in the industry after the pandemic brought the average occupancy rate into the low fifties in 2020.

Determining a "good" rate is less about finding a universal number and more about understanding local market conditions, historical performance, and your personal goals for the property. Knowing your market's average helps inform decisions on pricing, marketing, and operations.

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Average Airbnb Occupancy Rates by City: Top 10 Highest Occupancy Rates

If you’re new to the short-term rental market, understanding the average airbnb occupancy rates by city can help you choose a location that’s likely to generate a healthy revenue.

These markets had the highest trailing twelve-month short-term occupancy rates (March 2023 to February 2024):

Kauai, Hawaii: 74.4%
Oahu, Hawaii: 73.4%
Maui, Hawaii: 72.4%
Maine DownEast/Acadia Coastal: 67.7%
Big Island, Hawaii: 67.1%
New York City: 65.5%
Denver: 65.3%
Anaheim, California: 65.2%
Boulder, Colorado: 64.3%
 Outer Banks, North Carolina: 64.3%

Many of the markets with the highest occupancy rates are located in Hawaii. However, seeing as the vacation rental market in Hawaii is subject to fairly heavy restrictions, let’s consider the markets with the highest occupancy rates in the contiguous U.S.

Maine DownEast/Acadia Coastal: 67.7%
New York City: 65.5%
Denver: 65.3%
Anaheim, California: 65.2%
Boulder, Colorado: 64.3%
Outer Banks, North Carolina: 64.3%
San Diego: 64.2%
Sarasota, Florida: 64.1%
Lincoln City/Newport, Oregon: 64%
Gatlinburg/Pigeon Forge, Tennessee: 63.9%

Average Occupancy Rates by City: Top 10 Lowest Occupancy Rates

The average Airbnb occupancy rates by city in the following areas leave hosts wanting more. These markets currently have the lowest trailing twelve-month occupancy rates:

Oxford, MS: 34.9%
Big Bear, CA: 39.6%
Southbend, Indiana: 40.4%
Texas East Area: 41.4%
College Station, Texas: 41.8%
Mississippi area: 42.1%
Augusta, Georgia/South Carolina: 42.8%
Pocono Mountains, Pennsylvania: 43.2%
California South area: 43.7%
 Louisiana area: 43.9%

If you’re looking to invest in vacation properties, avoid these markets because you likely won't get a good ROI. Property managers and hosts in these markets may need to lower their rates to encourage guests to book with them rather than other Airbnbs.

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Why Airbnb Occupancy Rates Differ from Hotels 

Hotels offer a consistent product and pricing strategy, but STRs vary widely in terms of property type, location, amenities, and host engagement. It’s crucial to assess STR occupancy differently than traditional hotel occupancy in order to accurately reflect performance in the vacation rental market.

AirDNA only considers active listings in its occupancy rate calculations, whether it’s for a specific market or when someone uses our Airbnb calculator. We define active as having at least one calendar day classified as reserved or available during the reporting period. If we included every available night from every available listing in our occupancy calculation, it would return a falsely low occupancy rate. This is due to variations in vacation rental host behaviors and motivations. We’re talking about host attentiveness in managing listing calendars and their responsiveness to reservation requests.

Here are three host cases that would falsely skew occupancy downward if we included them in the occupancy rate calculation: 

Event-Based Hosts: Hosts who list properties temporarily to take advantage of specific events, causing temporary market fluctuations that don’t reflect regular hosting activity.

"Make Me Move" Hosts: Hosts who set their prices significantly above the market rate, using Airbnb as an opportunistic platform rather than a committed hosting venue.

Dormant Listings: Properties that appear available but haven't seen a booking for months, often due to a shift in host priorities or property usage.

AirDNA ensures that its occupancy rate calculations reflect genuine market activity and trends by focusing on active listings. We stand by the accuracy of our data and use this methodology to help stakeholders understand the true dynamics of the STR market. Our insights are distinct from those that can be gleaned from hotel occupancy data.

How to Get High Occupancy on Airbnb

Occupancy rate may not be a complete picture of your property’s performance, but it’s still important. After all, you’re only making money if guests are staying at your property. If your occupancy rate is falling short of expectations, take these data-driven steps to learn how to increase occupancy rate on Airbnb. 

Increase Your Airbnb Occupancy Rate

Occupancy Rate is Just the Beginning  

According to ou annual best places to invest report, most of the destinations at the top of the list have occupancy rates of 60-70%. If you're interested to learn more about a market's occupancy rate, visit the AirDNA app.

While Airbnb occupancy rates are important, you need to track a range of metrics to assess how your Airbnb is performing overall. Our insights can help you optimize your properties for the best possible occupancy rate, average daily rate (ADR), revenue per available rental (RevPAR), and overall profitability.

Frequently Asked Questions:
What is a good occupancy rate for an Airbnb?

There is no universal “good" occupancy rate. Determining whether your occupancy rate is optimized requires understanding local market conditions, historical performance, and your personal goals for the property. Keep in mind that lower occupancy rates don’t necessarily indicate lost revenue. If you are charging a higher average daily rate, you might not need as many bookings to make as much money as a competitor with higher occupancy but a lower nightly rate.

Where can you see Airbnb occupancy rates?

You can see the occupancy rate for your listing as well as that of competitors in the area on your AirDNA dashboard. 

Find out what “Airbnb occupancy rate” refers to, how to calculate it, and tips for improving your occupancy rate and increasing your STR income.

European Market Review: April Setback Offset By Year-Over-Year Growth in Summer Demand

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