It may feel great to be fully occupied three months out, but very high Airbnb occupancy can also mean you’re leaving money on the table.
Last Minute Travelers
Many Airbnb travelers tend to be last minute travelers and while they’re looking for a bargain relative to hotels, these travelers are also willing to pay more when booking closer to their travel dates. Booking well in advance could mean you’re giving up profits for a high Airbnb occupancy.
There are often activities that draw travelers to your area, especially if you’re in a popular travel destination that frequently enjoy special events. If you book out too early, especially before you learn of these events, you’ll be potentially missing out on significant profits as special events could sometimes fetch 2-5x the normal nightly rates.
For your Airbnb occupancy, aim to be fully booked out 2-3 weeks out and at most 50% booked from 4-8 weeks out. Leave room for your schedule to capitalize on last minute travelers. But make sure to leave nice chucks of days so that you aren’t left trying to fill odd 1-2 night gaps last minute.
Especially when there’s a special event coming up in your area where hotels are booked out well in advanced. Look at the rates the hotel is charging relative to their normal rates–this should serve as a baseline for the premium you should charge for your unit when you’re still 4-8 weeks out.
Find out why you’re leaving money on the table when you have 100% occupancy.
How far in advance do you like to book out your units? Share your thoughts below!