What Is Pacing for Short-Term Rentals?

Summary

What is pacing?

A peek into your future bookings to see how they're shaping up. Pacing tracks how many stays you're getting, when guests are booking, and what they're paying. Compare this to last year's patterns and you'll know if you're on track or need to make changes.

Why it matters

When you know how bookings are coming in compared to usual, you can act fast. If bookings are slow, maybe it's time to adjust prices. If they're speeding up, you might want to raise rates. Pacing helps you make these calls with confidence.

Who should know it

Short-term rental hosts, property managers, vacation rental companies, and real estate investors who want to stay ahead of market trends and maximize their property’s performance.

Where you'll see it

Jump into your AirDNA dashboard to check your pacing stats, like when guests are booking and what rates they're getting. Plus, our monthly reviews break down the bigger picture, showing you how the whole market is trending.

Pacing Overview

Pacing, or demand pacing, helps track and predict booking trends by showing how reservations are coming in over time. It reveals key insights like how many nights are being booked, how far in advance guests are reserving, and what rates they’re paying.

Future pacing goes further by forecasting how occupancy and pricing are shaping up for upcoming dates. For example, if bookings for next month are slower than usual compared to past trends, it could signal a need to adjust pricing or marketing to stay competitive. By comparing current and future booking trends, hosts and investors can make smarter decisions to maximize revenue.

How Pacing Works

Pacing combines real-time booking trends with historical data to provide actionable insights into future demand. Key metrics include:

• Future bookings: Tracks the number of nights booked for upcoming dates.
• Booking lead time: Measures how far in advance reservations are made.
• Pricing trends: Analyzes the rates at which bookings are being made.
• Market comparisons: Compares current booking activity to prior years to identify trends.

Let's say you're checking your December bookings. Pacing shows that in past years, guests booked about two months ahead, with 60% of December nights filled by October 1st. But this year, you're only 40% booked. Knowing this now means you can drop your rates or add some special offers while there's still time to catch up.

Why Is Pacing Important?

Pacing gives you a clear picture of how the market is shaping up, helping you make smarter decisions about pricing, marketing, and occupancy. Here’s why it matters:

• Optimizing pricing: Pacing helps you adjust your rates based on demand. If bookings are slow for a popular date, you can lower prices or add promotions to attract guests. On the flip side, if demand is high, you can raise rates to maximize revenue.
• Forecasting occupancy: By showing how many nights are already booked, pacing helps you predict how full your calendar will be. 
• Staying competitive: Comparing your pacing data to other properties in your area lets you see how you stack up. If your bookings or rates are falling behind, you can tweak your strategy to stay competitive.

At AirDNA, we include pacing data in every monthly market review we post. This makes it easy to see key trends and understand the overall health of the short-term rental industry, giving you the insights you need to stay ahead.

How to Use Pacing Data

Pacing data helps short-term rental hosts make smarter decisions about bookings and pricing. Here’s how to use it: 

1. Identify booking gaps and adjust strategies 

Use pacing data to find dates with few or no bookings. Then adjust your strategy with discounts, promotions, or dynamic pricing to bring in more guests. For example, if a usually busy weekend isn’t filling up, a small price drop or added perks like early check-in can help.

2. Adapt to market changes

Real-time insights let you react quickly to shifts in demand. If last-minute bookings are picking up, you can increase prices to maximize revenue. If things slow down, offering flexible terms or lowering rates can attract more guests.

3. Plan for seasonal trends

Historical data shows when demand is likely to rise or fall. You can raise rates and set minimum stays during busy times or focus on promotions and marketing during slower periods to keep bookings steady.

4. Optimize pricing to match demand

Pacing helps you nail your pricing strategy. When you know how demand is trending, you can adjust your rates to match what's happening in your market. Check out our detailed guide on optimizing your Airbnb pricing strategy with dynamic pricing.