The amount of Airbnb reviews, the location of your property and how much you charge guests will all impact how many people book to stay at your place. You may be surprised to find that reviews are the most important, while price and location only have a small impact. Find out what influences each factor:
Above all, Airbnb reviews are what matter most. Good or bad, what the review says matters far less than having a review. According to Mashvisor data analysis, good reviews actually don’t increase occupancy rates as much as simply having the review.
Regarding Airbnb San Francisco properties, the average occupancy rate is 44%, one of the highest, and the number of reviews has a 27% influence on occupancy rates. Meaning that Airbnb reviews account for 27% of the total variables such as price and location that will negatively or positively change your occupancy rate, more reviews results in more guests; making the total review count the most important factor that affects occupancy rates. Most surprising, each extra Airbnb review increases occupancy rates by 0.3%, but the star rating of the property had very little to no influence on occupancy rates.
In Airbnb San Jose properties, the number of Airbnb reviews has a 34% influence on occupancy rates, and each extra host review increases occupancy by 0.5%. Airbnb homes in Seattle, Philadelphia and Boston, all with averaged occupancy rates over 30%, reviews influenced occupancy rates by approximately 25%.
The statistical analysis of these cities shows that the number of Airbnb reviews does matter. Encouraging guests to review your property after they stay, without worrying about what they are saying, is one of the easiest and most effective ways to increase your occupancy rates.
If you’re in the middle of a big city, with an apartment for rent next all the big attractions, you’re going to get more people wanting to stay at your central location then the owner of an apartment on the outskirts of town.
The location of your property is invariably going to affect how much you can charge. Two guests staying in an entire apartment or house in Raleigh sets you back an average of $153 a night. For the same dates, an entire apartment on Airbnb New York costs an average of $373 a night. In Los Angeles, it’s $266, a night. Other events, such as marathons or graduations in your city will also increase demand for your property, allowing you to raise the price.
Having a property near central, tourist areas, or in great neighborhoods are more likely to get you bookings than dropping the price.
Related: Investing in the Right Neighbourhood
Price is included here to highlight how small the impact price has on occupancy rates. Airbnb users are directly competing with hotels, especially in large cities, and they are almost always able to undercut hotel prices. For example, hotels in New York have high occupancy rates; similarly, Airbnb New York properties have high occupancy rates. That being said, between Airbnb owners, a fluctuation in price has a relatively small impact on occupancy.
People using Airbnb want to trust the owner of the house – they want to know that everything they were promised happens, and want to ultimately enjoy the experience. If they owner prices themselves too low, guests may start to wonder if the rental is lacking something major. That’s why Airbnb reviews matter so much – guests want to know that other people have stayed in the property, whether they had a good time or not is less significant, but knowing that the Airbnb hosts have had experience with lots of people gives guests more peace of mind.
What other factors do you think have a major influencers on improving the occupancy rate of an Airbnb rental? Leave a comment, and let’s chat!
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