STR Data in Austin, TX - # of Guests, Average Daily Rates, Occupancy %...

[Ryan Leake]

This week's post goes out to the data-driven folk...

First, let's talk about two key metrics: Average Daily Rate (ADR) and Occupancy Rate (%).

Understanding ADR: Maximizing Rental Income

The Average Daily Rate (ADR) is a key metric in the short-term rental (STR) industry. It reflects the average rental income per booked night, including nightly rates and additional fees like cleaning charges, pet fees, etc. Several factors impact ADR, including location, seasonality, supply and demand, property type and size, and local events. You can boost your ADR by optimizing listing details, adjusting pricing based on market data, improving property appeal, and leveraging positive reviews. All things which we'll continue to discuss.

Optimizing Occupancy: Filling Your Calendar

Occupancy Rate, another critical metric, paints a vivid picture of your property's performance. The occupancy rate, a vital metric for Airbnb success, is calculated by dividing the number of booked nights by the available nights. The occupancy rate reflects how often your property is rented out compared to its availability. Understanding and monitoring your occupancy rate is key to maximizing earnings, as it indicates property performance and influences pricing and marketing strategies. Strategies to improve your occupancy rate include optimizing your pricing, targeting the right guest demographics, upgrading amenities based on market demand, gathering positive reviews, etc.

The Data

So for our analysis, we've peeked into the data here in Austin, TX using a leading short-term rental (STR) data and analytics provider called AirDNA. We broke it down based on a crucial aspect of short-term rental success: the number of guests able to stay in a particular property per booking, which the industry cool-kids refer to as "heads in beds." Essentially, we extracted the ADR and occupancy rates to see the variations between potential revenue based on how many guests are able to stay at the properties.

The goal is to shed some light on the different levels of demand depending on the # of guests allowed as well as to see which months attract the highest demand (hint: it's March, April & October). The other clear takeaway is - by increasing the amount of guests that you're able to accommodate in your Airbnb, you're likely to increase the amount you can charge on a nightly basis. Our team is always looking for ways to accommodate more guests while maintaining a comfortable guest experience.

More guests doesn't necessarily mean higher occupancy, however, which is why it's so important to look at each property's potential individually.

Stay tuned for more data and actionable insights to fuel your success in the Austin short-term rental market!

Your local host,

Ryan Leake