Vrbo Instant Booking simplifies the reservation process for hosts and guests, but may lead to more cancellations.

Vrbo Instant Booking is a feature that automatically approves all guest reservation requests without requiring approval from the host.

The Instant Booking feature saves time for hosts and guests and may lead to increased occupancy.

While Instant Booking offers convenience, hosts must balance it with the effort of maintaining clear house rules and managing potential cancellations to optimize their hosting experience.

Vrbo Instant Booking eases the burden of maximizing occupancy at your STR by appealing to last-minute travelers whose trips don’t allow time for confirmation. By enabling Instant Booking on your Vrbo listing, you open your property to more types of travelers, increasing your occupancy potential and maximizing your earning potential.

Let’s take a look at the pros and cons of Vrbo Instant Booking to give you new ways to optimize your hosting experience. Whether you're a seasoned host or just starting out, Instant Booking can elevate your hosting game and take your vacation rental business to new heights.

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

Vrbo Instant Booking lets travelers book vacation rental properties instantly, without needing to wait for hosts to respond. Unlike traditional booking methods where hosts have to approve each reservation request manually, Instant Booking is seamless and instantaneous.

Travelers can select desired dates on a host's calendar and confirm their reservation in just a few clicks. This streamlined process saves travelers time and eliminates the need for back-and-forth check in communication with hosts. When a host enables Vrbo Instant Booking on their listings:

Traveler booking requests are instantly confirmed.

The traveler's credit card is charged for the initial amount.

A confirmation email is sent to the host with booking details.

The reservation is automatically updated in the host’s Reservation Manager.  

With the ease of this feature in mind, it makes sense why 75% of Vrbo properties have Instant Booking enabled. That said, Instant Book is considerably more prevalent at properties with shorter minimum stays.

90% of Vrbo properties with a 1-night minimum stay have Instant Booking enabled, compared to less than 50% of properties with a 28+-night minimum stay policy.

Know exactly how much to charge based on your vacation rental pricing strategy.

What Are the Benefits of Enabling Instant Booking on Vrbo? 

The biggest benefit of Vrbo Instant Booking is that it saves time for hosts and travelers alike. Guests can secure a reservation without waiting for host approval, helping to speed up the booking and check-in process. Hosts eliminate the headache of having to respond to every booking request.

Other benefits of Vrbo Instant Booking include:

Greater occupancy: Over the last year, average occupancy for Instant Booking properties in the US was 53%, while average occupancy for non-Instant Book properties was 51%. 

More visibility on Vrbo: Instant Booking listings see greater search visibility on the Vrbo platform, as Vrbo prioritizes these convenient listings. 

Less headache: Hosts and property owners bypass the fuss of booking inquiries by automating the process.

While properties of all sizes can benefit from enabling Instant Booking, larger properties with more bedrooms see a greater occupancy boost than their smaller peers. 

Four- to five-bedroom listings with Instant Booking enabled see a 5% occupancy boost, compared to a 1-2% occupancy boost for similarly enabled one- or two-bedroom properties. AirDNA offers tools that can help you evaluate your property’s revenue potential to see if Instant Booking could help. 

Overall, enabling Instant Booking on your Vrbo listing can save time, improve your listing’s search visibility, and increase bookings. This makes it a valuable feature for hosts and property owners looking to attract more guests.

What Are the Disadvantages of Using Instant Booking on Vrbo? 

While Vrbo Instant Booking is convenient, it has its own potential disadvantages. 

Vrbo’s House Rules Requirement, for example, requires that Instant Booking hosts outline clear house rules in their listing. Guests must meet and agree to the host’s House Rules before they can use Instant Book to secure their reservation. 

While this can increase transparency and clarify guest expectations, it may require more effort on the host’s part. Expect to spend time on a comprehensive welcome guide, including photos or even virtual tours. 

Instant Booking can also lead to more cancellations since guests can book rental dates immediately. Guests may not take the time or care to confirm their travel details before booking, whereas an extended booking process can motivate guests to lock in details so they don’t have to repeat the process later on should travel changes come up.

Hosts who enable Instant Booking need to carefully manage cancellations to avoid negative impacts on their metrics. For example, high cancellation rates can affect their Premier Host status.

Overall, while Vrbo Instant Booking offers convenience and efficiency, potential drawbacks like the House Rules Requirement and more cancellations mean hosts need to keep a close eye on how Vrbo Instant Booking is affecting their business.

How Do You Turn Vrbo Instant Booking On and Off?

1. Log in to your Vrbo account and navigate to your dashboard.

2. Select the property for which you want to adjust the booking settings.

3. Go to the "Calendar & Pricing" section of your property dashboard.

4. Look for the "Booking settings" or "Booking options" tab.

5. Find the option to enable or disable Instant Booking.

6. Toggle the switch to turn Instant Booking on or off according to your preference.

7. Save your changes, and your booking settings will be updated accordingly

How does Vrbo Instant Booking benefit hosts?

Instant Booking can save hosts time by automating the booking process, improving their listings’ search visibility, and increasing bookings by making it more convenient for guests.

What are the disadvantages of using Vrbo Instant Booking?

One major potential drawback is the House Rules Requirement, which may limit host control over who can book their property while requiring a more comprehensive welcome guide. Another potential drawback is that Instant Booking may lead to more cancellations, which can hurt your metrics and Premier Host status. 

How can I turn Vrbo Instant Booking on or off?

You can adjust your booking type settings in your Vrbo account to enable or disable Instant Booking based on your preferences and hosting style. Head to the “Calendar & Pricing" section, and then the “Booking settings” tab, of your property dashboard.

Can I still set specific requirements for guests with Instant Booking enabled?

You can still set specific requirements, such as minimum stay lengths and guest qualifications, with Instant Booking enabled.

Which areas see the most properties with Instant Booking?

Markets with the highest percentages of Instant Booking-enabled properties include:

New York has the lowest percentage of Vrbo properties with Instant Booking—only 38% of properties use Instant Booking.

AirDNA’s powerful yet easy-to-use tools make hosting and investing a breeze. This means having every insight you need, all in one place, always up-to-date.

We know Vrbo Instant Booking is great for guests, but what about hosts? We turn to the data on which type of host and property benefits most from this feature.

Vrbo Instant Booking: Pros and Cons

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.

Vrbo Instant Booking: Pros and Cons

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