Airbnb pricing: why occupancy is only part of the picture

Look beyond a full calendar

Occupancy shows how many available nights guests booked. On its own, it does not show the revenue or the cost of those bookings.

A property can attract more bookings because its price is low. Another can sell fewer nights but earn more revenue. A useful comparison needs more than one measure.

Read three measures together

• Occupancy: booked nights divided by available nights.
• Average daily rate: accommodation revenue divided by booked nights.
• Revenue per available night: accommodation revenue divided by available nights.

Use the same period and revenue definition in every comparison. Record nights blocked for personal use separately. Otherwise, a different calculation method can look like a change in performance.

A simple hypothetical example

Suppose a property has 30 available nights. In the first scenario, guests book 24 nights at an average rate of €80. Accommodation revenue totals €1,920.

In the second scenario, guests book 20 nights at an average rate of €100. Revenue totals €2,000. Occupancy falls, but accommodation revenue increases by €80.

These figures are hypothetical. They are not a performance forecast and exclude commission, operating expenses and taxes.

To assess the net result, include actual expenses and the number of guest changeovers. More revenue does not automatically mean more profit.

Adjust prices in context

Season, day of the week, time until arrival and local events affect demand. Review prices regularly, together with minimum-stay rules and availability.

Dynamic pricing does not guarantee higher revenue. It provides a way to adjust decisions when conditions change. See how Diamoni approaches dynamic pricing.

Define a useful result

Discuss your goal: more net revenue, fewer changeovers or more flexibility for personal use. The right target depends on the property and your priorities.

Request a free audit to review your current position and the next practical steps.