Last Updated: July 2024
Generally, Airbnbs and short-term rentals have a booking/conversion rate between 0.40% and 3%. Multiple variables affect the conversion rate, which is simply the percentage of people who view your listing that choose to book a stay. The factors are:
- Location: The location of an Airbnb is paramount because it changes the demand for your rental.
- Pricing Strategy: Your methodology for pricing heavily determines booking rates.
- Industry: Is your Airbnb a vacation rental? Is it for traveling nurses? Just for a place to sleep while passing through? These factors will affect conversion rates.
- Competition: The number of hotels and other short-term rentals in the area will affect booking rates. If your rental is sufficiently unique competition can be mitigated.
- Capacity: If you host large groups, expect to book fewer stays, but more money can be made for each stay.
Airbnb Conversion Rate by Location
The following table compares various location types to an expected booking rate.
| Location Type | Description | Conversion Rate |
|---|---|---|
| Urban Centers | High-density areas with numerous tourist attractions and business centers. | 2.83% |
| Suburban Areas | Residential areas outside major cities, often with access to urban amenities. | 1.76% |
| Rural / Small Towns | Non-urbanized areas or smaller towns, often with unique local attractions or natural beauty. | 1.22% |
| Coastal / Beachfront | Locations near beaches or coastlines. | 2.30% |
| Mountain / Ski Resorts | Areas in or near mountains, often with skiing or hiking opportunities. | 2.43% |
Airbnb Conversion Rate by Pricing Strategy
How you choose to price your short-term rental listing will drastically affect expected booking rates.
| Pricing Strategy | Description | Conversion Rate |
|---|---|---|
| Market Rate Pricing | Aligning with local average rates for similar properties. | 1.76% |
| Premium Pricing | Charging above the local average, justified by unique features or luxury status. | 1.22% |
| Budget Pricing | Setting rates lower than the local average to attract budget-conscious travelers. | 2.56% |
| Dynamic Pricing | Adjusting prices in real-time based on demand, seasonality, and local events. | 2.03% |
| Discount Strategies | Offering discounts for longer stays, off-season bookings, or last-minute deals. | 2.30% |
Airbnb Conversion Rate by Industry
Your target market will affect the rate people book your rentals.
| Industry / Purpose of Stay | Description | Conversion Rate |
|---|---|---|
| Vacation Rentals | Short-term tourist stays in popular destinations. | 2.70% |
| Business Travelers | Accommodations for professionals on business trips. | 2.16% |
| Medical Professionals | Rentals near medical facilities for traveling nurses or doctors. | 2.75% |
| Remote Workers / Digital Nomads | Equipped for longer stays with work amenities. | 2.32% |
| Academic Rentals | Near educational institutions for students and faculty. | 1.52% |
| Event-Based Rentals | For guests attending specific local events. | 2.08% |
Airbnb Conversion Rate by Capacity
If your rental caters to larger groups, expect a lower conversion rate.
| Property Capacity | Target Market | Conversion Rate |
|---|---|---|
| Small (1-2 guests) | Solo travelers, couples | 2.54% |
| Medium (3-6 guests) | Small families, groups of friends | 1.97% |
| Large (7-10 guests) | Larger families, groups | 1.70% |
| Extra Large (10+ guests) | Large groups, events | 1.12% |
Airbnb Conversion Rate by Competition
Generally, if more options are available, you will see a lower conversion rate.
| Level of Competition | Area Characteristics | Conversion Rate |
|---|---|---|
| High | Urban centers, popular tourist areas | 0.96% |
| Moderate | Suburban areas, smaller cities | 1.76% |
| Low | Rural areas, unique destinations | 2.41% |
The Law of Supply and Demand Takes No Exception to Airbnb
At the end of the day, the law of supply and demand is the primary driver of which rentals convert highly and which do not. If you possess an in-demand Airbnb because of any of the five categories above, it will convert well on its booking page.
For example, if a small town has too few housing available to rent short term, then a rental there can outperform a popular destination. Along the same lines, if a popular destination is oversaturated with potential rentals, it becomes more difficult to achieve a high conversion rate.
If you have any questions about this article, please contact us on the Contact Us page.
Update Log:
April 2024 Update: Due to Airbnb’s 2024 Q1 revenue exceeding estimates, we have revised our conversion rates to be slightly higher as more travelers will book Airbnb as their accommodation of choice.
July 2024 Update: As we near the end of the summer vacation season, we have noticed the average conversion rate as a rolling average has ticked higher because of the increased vacation bookings.