Last Christmas, somewhere between the prawns and the pavlova, our family had a brainstorm.
The topic? The Airbnb we renovated with our third daughter.
It was limping along at 40% occupancy and about $34,000 a year.
We didn’t throw money at it. No new furniture, no Kmart run.
We made three small changes. Twelve months later, occupancy was 75% and income was $51,500 – while charging less a night.
Your Airbnb occupancy rate is the share of available nights that are booked. It matters as much as your nightly price, because an empty night earns nothing.
Here’s exactly what we changed.
What Is a Good Airbnb Occupancy Rate?
Why 40% was a problem
At 40%, our place sat empty more nights than it was booked.
There’s no single “good” number. It depends on your area, the season and the type of property. A city apartment and a beach shack behave differently.
But if your calendar is mostly empty and your neighbours’ aren’t, something’s off. Usually it’s price, length of stay or how your listing reads.
Occupancy and income work together
It’s tempting to chase the highest nightly rate.
But a high rate with an empty calendar earns less than a fair rate with a full one. And every empty night still costs you – utilities, insurance, rates, strata.
The number that matters is what lands in your account over the year.
How to Increase Your Airbnb Occupancy: Three Small Changes
1. We dropped the price by about $20 a night
It felt backwards. Dropping the price to make more money?
But $20 a night moved us from “a bit pricey” to “good value” next to similar listings. More people clicked. More people booked.
Before you change yours, look at what’s booked near you, not just what’s listed. The listings with full calendars tell you what guests will pay.
2. We went after longer stays
We set a one-week minimum for bookings made up to about two months out.
Then, closer to the date, we shortened it to fill the gaps.
Longer stays mean fewer changeovers. Fewer cleans, less laundry, less wear and tear. And a week-long guest often books further ahead, so the calendar fills earlier.
The short stays then mop up what’s left.
3. We refreshed the listing headline every month
Your headline is the first thing a guest reads.
So every month, we changed ours to match what was bringing people to the area at that time. A festival. School holidays. A big event in town.
It takes five minutes. It means your listing talks to the people searching that month.
What Happened Twelve Months Later
| Before | After 12 months | |
|---|---|---|
| Occupancy | 40% | 75% |
| Income | About $34,000 a year | $51,500 a year |
| Nightly price | Our old rate | About $20 less a night |
While charging less a night.
Small hinges swing big doors.
Before You Copy This
What worked for us may not work for you
These changes suited our property and our area. Yours might need something different.
Check the short-term rental rules where you are, too. In Greater Sydney, for example, non-hosted stays are capped at 180 days a year, which changes the maths on occupancy.
And keep an eye on your costs. More bookings can mean more cleaning and more wear. Run the numbers on the whole year, not just the nightly rate.
Start with one change
Pick one. Price, length of stay or headline.
Change it, give it a month, and watch what happens. Then try the next.
If you’re thinking about renovating a property for Airbnb, or turning a place you already own into a money tree, book a discovery call. And if you’re still choosing a property, read 10 things to consider when buying a property for Airbnb.
Airbnb Occupancy Rate: Your Questions Answered
How is Airbnb occupancy rate calculated?
Divide the nights booked by the nights available, then multiply by 100. If 15 of 30 available nights are booked, your occupancy is 50%.
Can lowering my Airbnb price increase income?
It can. A lower nightly rate that fills more nights can earn more over the year than a high rate with an empty calendar. Ours did.
Should I set a minimum stay on Airbnb?
A longer minimum stay well ahead of time, shortened closer to the date, can fill the calendar earlier and cut cleaning costs. Test it on your own listing.
How often should I update my Airbnb listing?
We refreshed our headline every month to match what was bringing people to the area. Small, regular updates keep your listing relevant to what guests are searching for.
