My Average Airbnb Booking Rate Percentage

After analyzing the booking rates of my three Airbnb listings over the past year, I found that our average booking rate was approximately 2.5%. Comparatively, other hosts have reported rates ranging from 0.5% to 3.0%. This suggests that a 2% booking rate is considered respectable in the Airbnb community. However, it is worth noting that our booking rates varied greatly throughout the year, ranging from 0% to 6.7%. In this article, I will delve into the factors contributing to this variability and explore strategies to enhance our booking rates in the future.

Defining the “Booking Rate”

Before delving into the data, let’s establish what exactly is meant by the term “booking rate.” Airbnb provides hosts with various statistics for each listing, including booking rate. According to Airbnb’s definition, the booking rate indicates “the percentage of guests who book after viewing your listing.” In simpler terms, it represents the proportion of visitors who clicked on our listing from search results and ultimately made a booking.

Analyzing the Last 12 Months

In a recent article, I presented the view numbers for our listings over the past year. Now, let’s focus on the same three listings mentioned in that article.

Listing 1: This was our first Airbnb located in the basement. It has the lowest nightly rate, fewer amenities, and receives the fewest bookings. On average, 35-45% of nights are booked for this listing.

Listing 2: Our second Airbnb is a single-family home near downtown. The nightly rate is about 15% higher than Listing 1, and it offers many great amenities. Consequently, it receives the most bookings, averaging between 65-75% of nights booked.

Listing 3: Our most recent Airbnb is a larger, luxurious property. We charge a considerably higher nightly rate for this listing and provide numerous amenities. On average, it sees 50-60% of nights booked.

Between November 2019 and October 2020, here are the average booking rate percentages for these three listings:

• Listing 1: 35-45%
• Listing 2: 65-75%
• Listing 3: 50-60%

Interpreting the Numbers

Let’s start by calculating some averages:

• Overall average booking rate across all three listings in the past year: 2.5%

Comparing this booking rate with our average number of views (360 views), we can estimate that we receive approximately 9 bookings per month on average (360 x 0.025).

Possible Correlations

Listing 1 had a booking rate of only 1.83%, while Listing 3 boasted a booking rate of approximately 3%. This significant gap translates to around 4 bookings, which equals roughly 8 nights and $800 per month. What factors might account for this disparity?

One potential correlation is price. Upon examining our three listings, we observed that the lowest nightly rate correlated with the lowest booking rate, while the listing with the highest nightly rate exhibited the highest booking rate.

Another factor could be amenities. Listing 1 offers fewer amenities, possibly deterring potential guests searching for specific features such as a washer and dryer. Consequently, this lowers the booking rate. Additionally, Listing 1, though an independent space, is attached to the house in which I reside. This arrangement might be less appealing to guests, particularly amid the age of COVID-19.

The number of bedrooms could also be a contributing factor. Listing 1 has one bedroom, Listing 2 has two bedrooms, and Listing 3 boasts three bedrooms.

Seasonal Trends

All our listings experience higher booking rates during the summer and fall compared to winter and spring. The higher booking rates in July and August 2020 can be attributed to this seasonal pattern.

Our least favorable months were December 2019 and April 2020. The lower booking rates in December 2019 can be attributed to winter being our slow season. However, the decline in April 2020 resulted from the abrupt market crash following the implementation of COVID-19 lockdowns. In fact, from approximately March 15 to April 15, 2020, our Airbnbs remained empty due to the lockdowns.

Ultimately, external factors continuously influence booking rates. Even with the perfect listing, bookings may be minimal when the area is subject to COVID-19-related restrictions.

Timing of Bookings

It’s important to note that guests don’t necessarily book for the current month. For instance, the 6.7% booking rate at Listing 3 in August 2020 might include bookings for September and October as well. Consequently, some booking rates can be misleading.

For instance, a 0% booking rate at Listing 1 in December 2019 simply means that no bookings were made that month, not that the listing remained unoccupied.

Is a Higher Booking Rate Always Better?

In a previous article, I mentioned that more views do not necessarily equate to better outcomes. However, when it comes to booking rates, I believe higher rates are always preferable. Ideally, every viewer would become a guest, but that is seldom the case.

Based on information gleaned from the Airbnb community forums and Reddit, the average booking rate ranges from 1% to 3%. In my opinion, achieving a 2% booking rate is commendable. With some quick calculations, if you receive 200 views per month and maintain a 2% booking rate, you can expect approximately 4 bookings each month. Assuming guests stay for 2 nights, this means you will be consistently booking every weekend, which is a respectable outcome.

At this level of performance, an Airbnb investment property could at least break even. From there, you can work on increasing profitability.

Strategies to Increase Booking Rates

After examining the data, I am now contemplating how to improve our booking rates, particularly for Listing 1. The primary determinants of booking rates are the elements present on the listing page, as the cover photo has already fulfilled its purpose by attracting the viewer’s attention. Consequently, my focus will be on four key areas.

Amenities

Amenities play a pivotal role in booking rates (supplementary photos also hold considerable weight). Guests frequently filter their searches by amenities, though some rely solely on date, guest count, and/or price. Therefore, visitors who land on our page without filtering for amenities are likely interested in what our place has to offer. To optimize this aspect, we must ensure that all our existing amenities are appropriately highlighted and consider adding more. According to Airbnb, the most requested amenities are WiFi, air conditioning, a kitchen, and parking.

Supplementary Photos

Airbnb’s visual nature necessitates high-quality, professional-looking photos that portray clean and well-designed spaces. To enhance our booking rates, we should carefully review our existing photos, ensuring that each one leaves a positive impression. Any missing elements should be addressed. While more photos are generally beneficial, we should never upload subpar images. Key considerations include:

• Clean surfaces
• No visible trash or dirty laundry
• Organized items (e.g., pots, pans, dishes)
• Neatly made beds

When in doubt, seek the opinion of a friend for honest feedback.

Listing Description

Though it is difficult to ascertain how many guests thoroughly read listing descriptions, it is safe to assume that some do. Therefore, it is worthwhile to invest time and effort into creating a comprehensive and compelling description. Highlight every noteworthy aspect, drawing inspiration from the surrounding area and positive feedback from past guests. Remember that some potential guests may be visually impaired and unable to view the photos. A well-crafted description becomes an invaluable tool for communicating why our listing stands out.

Reviews

While reviews are not the sole factor driving bookings, they do impact guests’ decisions. Every Airbnb host starts with zero reviews, and this does not prevent guests from making bookings. Negative reviews may deter some guests, while positive reviews reinforce their decision to book. Most guests likely scrutinize the photos before turning their attention to reviews. If nothing raises concerns, they proceed with the booking. However, listings with a substantial number of positive reviews are often highly valued by potential guests. As hosts, our primary focus should be providing exceptional service and thoughtful touches to impress guests and gradually accumulate positive reviews over time.

Conclusion

Across our three Airbnb listings, the average booking rate percentage over the past year was 2.5%. Comparing this with the experiences of other hosts, a booking rate between 2% and 2.5% is considered commendable. Nevertheless, there is always room for improvement. In the future, I will revisit our listings’ amenities lists, supplementary photos, descriptions, and reviews to enhance our booking rates.

Happy investing!