The summer travel season is looking sunny for European STR hosts, literally and figuratively! Nordic countries and UK cities are seeing strong demand. Hosts can expect notable performances in August from cities hosting major concerts, like Munich, Vienna, and Bucharest. Despite steady supply growth, the positive demand trends indicate a strong market outlook for the coming months.

European Market Review: STR Business Was Booming in June, Especially for Nordic Countries and UK Cities

June saw record-breaking demand nights in Europe, with a significant year-over-year (YOY) increase. 

Despite strong demand, steady supply growth kept occupancy rates positive but caused ADR growth to plateau.

Nordic countries led in demand growth, but increased competition limited revenue gains. In the UK, urban and suburban areas saw the highest growth, driven by foreign travelers.

European summer demand was off to a sizzling start last month. Demand nights in Europe reached a record high of 44.5M in June, up an impressive 18.6% year-over-year (YOY). Available listings continued their persistent rate of growth, reaching 3.8M, up 14.8% YOY. Strong demand last month kept occupancy growth positive. Occupancy across the European continent averaged 59% in June, a 1.4% YOY increase. 

The European continent has seen ADR growth slow significantly over the last 6 months as supply growth has been chipping away at the pricing power of hosts. Average daily rates (ADRs) averaged €167 last month, on par with rates last June. With modest occupancy growth and stagnant ADR growth, RevPAR growth slowed to 1.4%, the lowest YOY growth we’ve seen in nearly two years.  

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At a Glance: June STR Performance in Europe

Available listings totaled 3.8M, up 14.8% year-over-year (YOY)

Demand reached 44.5M, an increase of 18.6% YOY

Average daily rates (ADR) averaged €167, the same as June 2023 

Occupancy was up 1.4% YOY and down 3.8% compared to 2019

Revenue per Available Rental (RevPAR) increased 1.4% YOY to €99 

Nordic Countries Took the Lead for Demand Growth in June 

The Nordic countries started the summer strong. Leading year-over-year (YOY) demand growth in June were:

Lagging behind the top-performing Nordic destinations but still boasting double digit demand growth were:

RevPAR Increased in 13 of Top 20 EU Markets

Strong demand growth doesn’t always mean more revenue for hosts. 4 of the top 5 countries that led demand growth in June actually saw year-over-year (YOY) RevPAR declines. Keep in mind that RevPAR combines your average daily rate (ADR) with your occupancy rate to give you a snapshot of your potential and actual income.

Despite their growing popularity among travelers, strong listing growth has left hosts with more unbooked nights, less pricing power, and less revenue in the Czech Republic, Sweden, Poland, and Norway. Guests are flush with choices for accommodations and therefore the competition is high.

Meanwhile, the strongest RevPAR performers benefit from both occupancy and ADR gains:

In Denmark, YOY RevPAR growth of 15.4% YOY was driven by 12.8% YOY ADR growth and 2.3% YOY occupancy growth. 

Germany, which has been hosting the EURO 2024 since June 14th, saw ADRs jump 6.7% YOY last month while occupancy increased 2.3%. 

In Spain, occupancy growth of 5.9% coupled with ADR growth of 2.9% led to a 9% YOY increase in June RevPARs. 

Urban Markets Dominate UK Demand and Supply Growth 

Demand and supply growth has been stronger in the top 50 largest European cities than outside of them. In the last year, demand growth among the top 50 cities has averaged 19%, while demand growth in areas outside of these cities has averaged 10%. Supply growth has averaged about 23% within the top 50 cities and only 13% outside of them. 

However, despite strong year-over-year (YOY) growth, it’s important to note that demand and supply in the top 50 cities have yet to return to pre-pandemic, 2019 levels. In June, total demand nights in the top 50 cities remained 1% below 2019 levels while supply remained 5% below 2019 levels. 

A closer look at demand growth by location types in the UK STR market only highlights the strength of urban areas over the last year. Urban (+24%) and suburban (+20%) markets in the UK have seen the highest demand growth over the last year while rural, coastal, and mountain destinations have seen demand growth ranging from 12-14%. 
Strong demand for cities has fueled supply growth in large UK cities. YOY supply growth for urban and suburban markets in the UK has averaged about 30% over the last year. Listing growth in rural, coastal, and mountain destinations, on the other hand, has averaged about 12%. 

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Foreign travelers are fueling demand in major urban markets like London and Edinburgh. More than 70% of short-term rental (STR) stays in London and Edinburgh are made by guests coming from out of the country. Foreign travelers only started fully returning to Europe in the last year and a half. Their return has had a large impact on the recovery of urban STR demand. 
On the flip side, demand growth in rural, coastal, and mountain destination markets is fueled by domestic travelers. Markets such as East Yorkshire, Isle of Anglesey, and Scarborough became more popular during the pandemic as UK residents were looking to escape the cities. Demand has more than doubled in these destinations since the pandemic, and nearly 90% of demand is from domestic travelers. 

Concert Goers Drive August Demand in Munich, Vienna, and Bucharest

Demand pacing for Europe is showing no signs of slowdown. Current demand on the books for August is up 20% compared to last year, while September and October bookings are up 18% year-over-year (YOY). 

August is typically the peak month for short-term rental (STR) demand in Europe. The hottest destinations appear to be where major music artists are taking the stage—and STR market—by storm.  

Leading the top 50 cities in demand growth for August is Munich. The city has Adele to thank for the increased travel demand it’s expecting in the next month. The British artist will be performing 10 open air concerts over the course of five weekends at Messe München, a stadium that can seat up to 80,000 spectators. 

Mixed in with Adele’s concerts are that of Coldplay at the Olympiastadion on August 15th and 17th. Demand is spiking during all Adele and Coldplay concert evenings. Current demand on the books for August is up 109% compared to last year. 


In second place for August demand growth is Vienna, Austria, host city for both Taylor Swift and Coldplay next month. Taylor Swift is scheduled to perform three nights at Ernst-Happel-Stadion from August 8th to August 10th. Coldplay will be performing four nights from August 21st to August 25th. Demand is spiking for all concert nights and STR bookings for August are currently up 58% YOY in Vienna. 

Rounding out the top three is Bucharest, Romania, which has been growing in popularity among travelers over the last year. However, Ed Sheeran’s appearance in the city is offering an extra boost, putting the city in third place for year-over-year (YOY) demand growth in August. Demand on the books is currently up 56% YOY.

In the bottom three for August demand growth are Amsterdam, Hvar, Croatia, and Lisbon, Portugal. STR regulations have crippled supply and demand growth in both Lisbon and Amsterdam over the last year. Many major Croatian cities, including Havar, haven’t seen the return of international travelers post-pandemic and STR demand is still significantly lower than pre-pandemic levels.

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.

European hosts, rejoice! Demand was up nearly 20% year-over-year in June. Read on to learn which cities will see booming demand in August.

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%

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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: STR Business Was Booming in June, Especially for Nordic Countries and UK Cities

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