With long-term stays on the increase, it can also be a good idea to monitor the average length of stay. Total room revenue ÷ Number of available rooms = Revenue per available room Average length of stay (ALOS) To do that, you can work out your revenue per available room. Revenue per available room (RevPar)įor a more comprehensive picture, you need to combine your average daily rate with your occupancy rate. If you calculated your average occupancy rate and discovered that it was lower than your area’s occupancy rate, your ADR might be too high. So, this merely the earnings potential.Ī high ADR isn’t necessarily always positive. The total revenue generated by reservations ÷ The total number of nights booked = Average daily rateĪs you’ll see, no mention is made of any operating costs. Here’s a formula for working out your ADR: Average daily rate (ADR)įor a better understanding of how much money a property can generate, you’ll need to know its average daily rate. If you use a vacation rental software solution like iGMS, you can work this out by referring to the number of confirmed reservations displayed on the dashboard. The vacation rental platform that you use will list this number somewhere. This is especially true if your listing is located in a city with strict regulations that cap the number of booked nights. While you’ll find occupancy rate more informative, knowing the number of nights a property has been booked in a year can also be important. On the other hand, if it’s drastically lower, you’ll need to consider dropping your price. For example, if your number is significantly higher, it could mean that your nightly rate is too low. Otherwise, the number won’t make that much sense. It’s important that you compare your answer to your city’s average occupancy rate. (The number of booked nights ÷ The number of available nights) X 100 = Average occupancy rate Here’s a formula for working out your average occupancy rate: Tracking your occupancy rate will give you insight into your overall performance as well as if your pricing strategy works. Occupancy rate is one of the most critical performance indicators. Here are additional metrics that you’ll also want to include in your analysis: Occupancy rate While Airbnb’s own dashboard is a good starting point, there are various other Airbnb analytics that Airbnb hosts should track too. Overview of Key Airbnb Performance Metrics To access these performance metrics, you simply go to Insights where you’ll see data for: This is probably the only time when it’s advised that you keep you with the proverbial Joneses. ![]() If you want to see how you stack up against similar listings in your neighborhood, you can also use Airbnb’s professional hosting tools to draw comparisons. Cancellations happen - one of the major lessons the pandemic has taught hosts and property managers. However, remember the proverb of never to count your chickens before they hatch. This can come in useful in determining seasonality trends, for example. Alternatively, you can also review the historical performance of all your listings over the past year.īy including data about your upcoming bookings, you can also review the future performance of your listings. You can, for example, use these professional tools to monitor your performance by identifying your best-performing listing (a useful feature if you have a portfolio with several vacation rentals). It offers a number of professional hosting tools that you can access via Account Settings. ![]() ![]() If you mostly list your vacation rentals on Airbnb, you’ll find the platform useful (however, only to some degree). Airbnb’s own platform and a simple spreadsheet are good places to start, but there are better ways to analyze and compare the performance of your vacation rentals as this blog post will explain. Then, you’ll also need to find tools to help you aggregate all the different data. Gathering the accurate data needed to boost the performance of your listings can quickly become a time-consuming activity if you don’t know where to look, though. Armed with this information, they’re in a much better position to distinguish themselves from the pack and increase their revenue. It’s only when property managers and hosts take the time to review data that they can get unique insights about their market and own performance. The short-term rental market has expanded at a tremendous speed and with that the competition and need for accurate data too.
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