How Does AirDNA Calculate Occupancy Rate?

Occupancy rate is calculated by dividing the number of reserved days by the total number of available days in the month for a property. Listings with no reservations are excluded. 

Reserved Days / Total Available Days

When calculating occupancy for a short-term rental, it’s essential to consider the number of days the property was available, as not all listings will be available year-round. For example, a listing could have been available 150 days of the last 12 months and occupied 50% of the time, so it was occupied 75 days in total. 

A high occupancy rate isn’t always a good thing; it may have a negative effect on revenue as the host may be charging a nightly rate that is too low, in turn receiving a high number of reservations but having an adverse impact on the revenue generated. Having the property occupied consistently can also pose challenges for cleaning, maintenance, and guest changeover. 

Optimizing your occupancy rate is about working out a balance between a good rate for both the host and the guests. Learn more about how to strike the perfect occupancy rate balance

 

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  • How do you take into account that a property might be advertised in other platforms than the ones you scrape and therefore occupancy rates might not be the real occupancy rates of the property? So as a simple example, a property with 100% real occupancy rate being advertised on Airbnb and Booking, receiving 50% of reservations from each, would we see a 50% occupancy rate on Airdna?

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  • Hi Borja, when scraping the listing's calendar, our algorithm can determine whether an unavailable date has been blocked by the host or is a genuine booking. In your example, if the listing had been reserved through Booking, by scraping the Airbnb calendar, we can see that the listing is unavailable and would then apply the logic of our algorithm to determine whether it is a booking or not. 

    We then take the rate the booking was priced on Airbnb to work out the total revenue for the booked dates.  

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