The European short-term rental market saw robust performance in July 2024, with demand reaching 57.6 million nights, up 17.7% year-over-year, despite experiencing its first Average Daily Rate (ADR) decline in 20 months. This report explores the current state of the European STR market, including economic factors influencing travel trends and the impact of the Paris Olympics.

European Market Review: Strong July Demand Meets First ADR Decline in 20 Months

Summer travel demand showed no signs of slowdown in July. Total demand nights for the European continent reached 57.6M nights, up 17.7% year-over-year (YOY). July is typically the month when supply peaks in Europe. 

Available listings last month hit a new record high of 4M in Europe, up 15% YOY and 5% from June. Demand resilience kept occupancy positive, and last month’s occupancy averaged 68% across the European continent, up 0.3% YOY. 

Despite the strength of supply, demand, and occupancy, last month was also the first month that Europe saw YOY Average Daily Rate (ADR) decline in 20 months. After nearly two years of consistent YOY ADR growth, ADRs last month were down 1.5% YOY. Negative ADR growth also turned RevPAR growth negative. RevPARs across Europe were down 1.2% YOY.

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At a Glance: July STR Performance in Europe

Available listings totaled 4M, up 15% year-over-year (YOY)

Demand reached 57.6M, an increase of 17.7% YOY

Average daily rates (ADR) averaged €174, down 1.5% YOY

Average occupancy was 68%, up 0.3% YOY and down 2.8% compared to 2019

Revenue per Available Rental (RevPAR) decreased 1.2% YOY to €119

In its June macroeconomic projections report, the European Central Bank’s (ECB) updated forecasts for inflation, GDP, and employment growth, reflected optimism about the future of the European economy. In March, the ECB forecasted 0.6% GDP growth for the European economy in 2024, but in its most recent forecast, the central bank revised its projection by 0.3 percentage points to 0.9%. Higher-than-expected growth in net trade and strong consumer spending in the first quarter of 2024 both contributed to the ECB’s upward revision. 

The ECB maintains that a strong labor market and declining inflation will enable private consumption growth to be the most significant driver of GDP growth in 2024. Employment is expected to grow 0.8% in 2024 and another 0.4% in 2025. Inflation, which stood at 2.5% in June, is expected to hover around 2.5% for the remainder of the year and decline to 2.2% in 2025. With resilience in the labor market and an expected increase of 1.9% in household disposable incomes this year, the ECB predicts that private consumption will grow by 1.2% in 2024 and 1.7% in 2025.

As for interest rates and the housing economy, the ECB noted that high interest rates continue to have a negative impact on economic growth and home purchases but that the impact will start to ease in the second half of the year as financing conditions improve. The ECB announced its first interest rate cut in June. The current key bank rate stands at 3.75% and there is high expectation that more cuts are coming. 

Growth in short-term rental demand and bookings thus far in 2024 aligns with the ECB’s projections of increased consumer spending. Short-term rental bookings and stays have been at all-time highs this year and growth has not slowed. Year to date, short-term rental bookings have been up 16% YOY and stays have been up 17% YOY. 

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Over the last five years, Europe has consistently seen YOY ADR growth. ADR growth in 2020 and 2021 was largely driven by rising home prices and limited short-term rental supply recovery in the face of high STR demand. In 2022 and 2023, inflation and persistent STR demand growth led to an increase in ADRs. However, since the first quarter of this year, we’ve seen ADR growth slow significantly as supply growth has been chipping away at the pricing power of hosts. Last month, ADRs in Europe were down YOY for the first time since fall of 2022. 

Not all European countries experienced a YOY ADR decline in July. Among the top 20 European countries, nine saw July ADRs decline. For countries like Norway, Sweden, and Greece, the YOY ADR decline has consistently coincided with occupancy declines, which resulted from supply growth far exceeding demand growth. ADRs have only begun to see a YOY decline this summer for other countries, such as Hungary, the UK, and France.

France ADRs Down 5% YOY Outside of Île-de-France

France is the most prominent country among the nine countries that experienced YOY ADR declines. As the largest STR market in Europe, making up nearly 25% of all European STR demand, the French market has a large influence on the overall performance of the European market. 

To separate the impact of the Paris Olympics on France's ADR performance in July, we looked at July's ADR performance for all 96 metropolitan French departments. 

For the French department of Paris, YOY ADR growth for the month of July was 10%. However, the first three weeks of July saw significantly lower ADR growth (+6% YOY) than the last week of July when the city was hosting the Olympics (+21% YOY).

Similar to Paris, the Paris suburbs saw modest ADR growth for the first three weeks of July but enjoyed significant ADR boosts during the last week of July. Below is YOY ADR growth for the month of July for the 7 French departments surrounding Paris that hosted Olympic main events:  

Outside of Île-de-France, July ADR performance was much weaker. ADRs for the 88 French departments outside Île-de-France were down 5% YOY for July. The French departments that saw the steepest YOY ADR declines in July were: 

For many of the French departments outside Île-de-France, declining ADRs corresponded with weak occupancy. Looking at occupancy by week, the first two weeks of July saw significant YOY occupancy declines due to low demand. Occupancy improved slightly during the last two weeks of July.

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With the Paris Olympics officially over, here’s a recap of the short-term rental industry’s gold medal performance in Paris. 

Demand: 743K total nights were spent in the Paris metro area for the Paris Olympics, marking a staggering 90% YOY increase. Assuming each booked listing was at maximum occupancy, this means short-term rentals in the Paris metro area hosted nearly 700K guests and over 2.7M guest nights. We saw the greatest demand spikes on Olympic weekends and the average length of stay was about 3.5 nights. 

Supply: 95K STR listings were available in the Paris metro area for the Paris Olympics. Nearly 60K were within the city limits of Paris, while an additional 36K were available in the suburbs of Seine-Saint-Denis, Hauts-de-Seine, and Val-de-Marne. Listing growth saw the most momentum in May, June, and July. In total, listings in the Paris metro area provided 1.2M listing nights for the Paris Olympics, a 76% YOY increase. 

It’s important to note that while available listings increased 76% YOY in July, the total number of active listings in Paris only increased 40% YOY. Due to STR regulations, Paris short-term rentals have a 120-day cap on the number of days they can operate, so not all active listings can be available all year long. The larger YOY change in available listings is the result of more hosts making their listings available this July than last July. 

Occupancy: Despite immense supply growth, high demand for stays enabled YOY occupancy growth in the Paris metro area. The average occupancy rate for Paris during the Olympics was 62%, up from 60% in 2023. In the immediate suburbs surrounding Paris, average occupancy was 59%, up from 51% in 2023.


ADR: By encouraging Paris residents to list their properties, Airbnb succeeded in keeping rates affordable for those looking to stay in Paris for the Olympics. The average rate paid for Olympic stays in Paris was 290 €, while the average rate paid for Olympic stays in the suburbs of Seine-Saint-Denis, Hauts-de-Seine, and Val-de-Marne was 171 €.

In its most recent earnings call, Airbnb highlighted shrinking lead times as a trend they are seeing in recent booking behavior. When we take a look at lead time trends in Europe since 2019, we can see that there has been a pretty significant decline in booking lead times in the last five years. 

In 2019, prior to the pandemic, the median lead time for bookings in Europe was about 38 days. During COVID, lead times shrunk dramatically due to travel uncertainty. While lead times have bounced back from pandemic lows, the new normal for lead times remains starkly lower than it was in 2019. The median booking lead time in Europe over the last 12 months was 24 days, down 3 days from the previous year. Shrinking booking lead times is also a trend we’re seeing in the US. 

The compression we’re seeing in booking lead times comes from fewer guests booking stays far in advance as well as more guests booking stays at the last minute. 

Over the past five years, we have observed a significant decrease in the percentage of stays booked more than 60 days in advance, as well as a notable increase in the percentage of stays booked less than 14 days beforehand. Trailing twelve-month (TTM) booking performance for July 2019 shows that 46% of stays were booked more than 60 days out and only 20% of stays were booked within 2 weeks of stay. However, when you look at trailing twelve-month booking performance for July 2024, the percentage of stays booked more than 60 days has fallen to 38% and stays booked within 2 weeks of arrival has increased to 32%. 

Lead times can also vary by location. European cities tend to see longer lead times because they receive mostly foreign travelers who book their stays further in advance. 

The median lead time for the 50 largest European cities over the last year has been 27 days. The median lead time for destinations outside of the 50 largest European cities has been 23 days over the last year. 

However, for the top 50 largest European cities and those outside of them, the median lead time for bookings was 38 days in 2019, and we’ve seen that shrink dramatically as guests are waiting longer to book.

With current booking trends pointing to shorter lead times, hosts looking ahead at their fall and winter bookings might expect their calendars to take longer to fill up and more bookings to come in closer to the date of stay. This also means winter holiday bookings could come in slower than previous years. 

It’s important to note that shorter lead times don’t necessarily mean that overall bookings will be down. The current demand pacing for Europe is showing strong YOY booking growth from September through the end of the year. Europe's demand is up 14% YOY through December. The shoulder months of September and October are seeing 15% YOY demand growth, while November and December bookings also point to the likelihood that European STR demand will end on a high note this year. 

In July 2024, Europe's short-term rental market saw record demand and supply. Despite high occupancy, average daily rates (ADR) fell for the first time in 20 months. Economic forecasts are positive, with shorter booking lead times and strong growth. Get key insights on market trends and the Paris Olympics impact.

Airbnb Occupancy Rate: Insights and Tips

Key Takeaways
The Airbnb occupancy rate is a vital metric for success and 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.
How you interpret your occupancy rate is essential; high and low occupancy rates don’t always mean what you think.

Successful Airbnb hosts are obsessed with bookings, and for good reason—it’s the name of the vacation rental game.

When hosts talk about Airbnb bookings, they're really talking about occupancy rate: the percentage of available nights that guests book. Monitoring your occupancy rate is important because it shows how well your Airbnb stacks up against the competition. The occupancy rate can also indicate whether you need to switch up your strategy or pricing to boost your rental income.

Whether you’re new to short-term vacation rentals or an industry expert, it’s important to understand the methodology and best practices behind your occupancy rate. 

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What is Airbnb Occupancy Rate?

In its simplest form, the occupancy rate is the percentage of time a vacation rental property is booked compared to the time it is available for bookings. 

To make understanding occupancy rate easier, let's use a straightforward example.

Imagine you own a cabin that's available for guests all year. That means it could potentially be booked for 365 nights. Throughout the year, guests book your cabin for 90 of those nights. We can use that number to calculate the occupancy rate and see how often your property was rented out compared to its availability. 

By dividing the booked nights (90) by the total available nights (365) and multiplying by 100 to get a percentage, we find an occupancy rate of approximately 25%. This means your cabin was rented out for about a quarter of the year.

Reasons Why Your Occupancy Rate Matters
Maximize Revenue Potential: Physical products can be sold at any time if they’re not immediately purchased. However, a vacant vacation rental represents a unique challenge. If a property goes unbooked for a night, it's impossible to "sell" that night again. Each unbooked night directly translates into a tangible loss of potential income. That’s why the occupancy rate is crucial for owners looking to maximize their earnings. 
Reveal Property Performance Insights: Consider two similar properties in the same location. Property A consistently achieves an 80% occupancy rate, while Property B struggles to reach 50%. This stark difference signals that Property A might be better aligned with guest preferences or have better marketing. Analyzing occupancy rates helps identify performance gaps and areas for improvement, whether that's improving your listing or adjusting pricing strategies to meet market demand.
Determine Market Demand and Inform Pricing Strategies: High Airbnb occupancy rates indicate strong market demand, while low occupancy rates can reflect lower demand. This information informs your pricing strategy. Let’s consider an apartment near a convention center that has high occupancy during events but low occupancy rates otherwise. This trend suggests that you may want to consider adjusting your rates in relation to the convention center’s event calendar. Dynamic pricing takes into consideration trends like this and uses them to optimize revenue during peak and off-peak times.
Guide Investment and Enhancement Decisions: Evaluate occupancy rates before and after making upgrades, like installing high-speed internet or renovating the kitchen, to assess the return on investment (ROI). This analysis is crucial for prioritizing property improvements that make your listing more appealing and, subsequently, improve the occupancy rate.

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How to Calculate the Airbnb Occupancy Rate

Understanding the occupancy rate of your Airbnb property is pivotal for optimizing your rental strategy. Yet, it all comes down to a single equation.

Airbnb Occupancy Rate Calculation

Reserved Days / Available Days x 100 = Occupancy Rate

With that in mind, here's a simple guide on how to find Airbnb occupancy rates:

Step-by-Step Calculation
Determine the Total Number of Reserved Days: Start by counting how many days guests booked your property over a specific period of time, usually 12 months. 
Identify the Total Number of Available Days: Calculate the total days your property was available for booking over the same time period, excluding any days you blocked off for personal use.
Calculate the Occupancy Rate: Divide the total number of reserved days by the total number of available days, then multiply the result by 100 to convert it into a percentage. These steps represent AirDNA’s version of an Airbnb occupancy rate calculator.

Example Calculation:

Imagine you own a house on the water in North Carolina and you're evaluating its performance on Airbnb over the last 12 months. The property was available for 340 days and booked for 240 days within this timeframe.

Reserved Days: 240

Available Days: 340

Occupancy Rate Calculation: 240/340 x 100 = 70.58%

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Interpreting Your Occupancy Rate

While a 70% occupancy rate may seem ideal, signaling guest satisfaction and consistent revenue, it's essential to delve deeper. High occupancy could indicate underpricing, meaning you might be missing out on potential income. It's crucial to balance occupancy with your average daily rates (ADRs) to maximize revenue. 

Think about it: A property with a 50% or 60% occupancy rate could earn more revenue than one that’s booked 70% of the time. It’s all relative to pricing. A property booked more often at $100 per night may not outearn a property that’s booked less often at $300 per night.

It’s important to ask yourself: Do I want higher occupancy or higher average daily rates (ADRs)? An accurate data tool can help you sort out which strategy is best for your bottom line. (Why guess when you can know exactly what you should be charging guests?)

What is a Good Airbnb Occupancy Rate?

Average Airbnb occupancy rates vary from market to market and year to year. You can see how the national average occupancy rate has fluctuated:

Trailing twelve months (TTM), March 2023 to February 2024: 55.1%
2023: 55.4%
2022: 58.6%
2021: 60.3%

The occupancy rate in 2022 reflects a recovery trend in the industry after the pandemic brought the average occupancy rate into the low fifties in 2020.

Determining a "good" rate is less about finding a universal number and more about understanding local market conditions, historical performance, and your personal goals for the property. Knowing your market's average helps inform decisions on pricing, marketing, and operations.

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Average Airbnb Occupancy Rates by City: Top 10 Highest Occupancy Rates

If you’re new to the short-term rental market, understanding the average airbnb occupancy rates by city can help you choose a location that’s likely to generate a healthy revenue.

These markets had the highest trailing twelve-month short-term occupancy rates (March 2023 to February 2024):

Kauai, Hawaii: 74.4%
Oahu, Hawaii: 73.4%
Maui, Hawaii: 72.4%
Maine DownEast/Acadia Coastal: 67.7%
Big Island, Hawaii: 67.1%
New York City: 65.5%
Denver: 65.3%
Anaheim, California: 65.2%
Boulder, Colorado: 64.3%
 Outer Banks, North Carolina: 64.3%

Many of the markets with the highest occupancy rates are located in Hawaii. However, seeing as the vacation rental market in Hawaii is subject to fairly heavy restrictions, let’s consider the markets with the highest occupancy rates in the contiguous U.S.

Maine DownEast/Acadia Coastal: 67.7%
New York City: 65.5%
Denver: 65.3%
Anaheim, California: 65.2%
Boulder, Colorado: 64.3%
Outer Banks, North Carolina: 64.3%
San Diego: 64.2%
Sarasota, Florida: 64.1%
Lincoln City/Newport, Oregon: 64%
Gatlinburg/Pigeon Forge, Tennessee: 63.9%

Average Occupancy Rates by City: Top 10 Lowest Occupancy Rates

The average Airbnb occupancy rates by city in the following areas leave hosts wanting more. These markets currently have the lowest trailing twelve-month occupancy rates:

Oxford, MS: 34.9%
Big Bear, CA: 39.6%
Southbend, Indiana: 40.4%
Texas East Area: 41.4%
College Station, Texas: 41.8%
Mississippi area: 42.1%
Augusta, Georgia/South Carolina: 42.8%
Pocono Mountains, Pennsylvania: 43.2%
California South area: 43.7%
 Louisiana area: 43.9%

If you’re looking to invest in vacation properties, avoid these markets because you likely won't get a good ROI. Property managers and hosts in these markets may need to lower their rates to encourage guests to book with them rather than other Airbnbs.

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Why Airbnb Occupancy Rates Differ from Hotels 

Hotels offer a consistent product and pricing strategy, but STRs vary widely in terms of property type, location, amenities, and host engagement. It’s crucial to assess STR occupancy differently than traditional hotel occupancy in order to accurately reflect performance in the vacation rental market.

AirDNA only considers active listings in its occupancy rate calculations, whether it’s for a specific market or when someone uses our Airbnb calculator. We define active as having at least one calendar day classified as reserved or available during the reporting period. If we included every available night from every available listing in our occupancy calculation, it would return a falsely low occupancy rate. This is due to variations in vacation rental host behaviors and motivations. We’re talking about host attentiveness in managing listing calendars and their responsiveness to reservation requests.

Here are three host cases that would falsely skew occupancy downward if we included them in the occupancy rate calculation: 

Event-Based Hosts: Hosts who list properties temporarily to take advantage of specific events, causing temporary market fluctuations that don’t reflect regular hosting activity.

"Make Me Move" Hosts: Hosts who set their prices significantly above the market rate, using Airbnb as an opportunistic platform rather than a committed hosting venue.

Dormant Listings: Properties that appear available but haven't seen a booking for months, often due to a shift in host priorities or property usage.

AirDNA ensures that its occupancy rate calculations reflect genuine market activity and trends by focusing on active listings. We stand by the accuracy of our data and use this methodology to help stakeholders understand the true dynamics of the STR market. Our insights are distinct from those that can be gleaned from hotel occupancy data.

How to Get High Occupancy on Airbnb

Occupancy rate may not be a complete picture of your property’s performance, but it’s still important. After all, you’re only making money if guests are staying at your property. If your occupancy rate is falling short of expectations, take these data-driven steps to learn how to increase occupancy rate on Airbnb. 

Increase Your Airbnb Occupancy Rate

Occupancy Rate is Just the Beginning  

According to ou annual best places to invest report, most of the destinations at the top of the list have occupancy rates of 60-70%. If you're interested to learn more about a market's occupancy rate, visit the AirDNA app.

While Airbnb occupancy rates are important, you need to track a range of metrics to assess how your Airbnb is performing overall. Our insights can help you optimize your properties for the best possible occupancy rate, average daily rate (ADR), revenue per available rental (RevPAR), and overall profitability.

Frequently Asked Questions:
What is a good occupancy rate for an Airbnb?

There is no universal “good" occupancy rate. Determining whether your occupancy rate is optimized requires understanding local market conditions, historical performance, and your personal goals for the property. Keep in mind that lower occupancy rates don’t necessarily indicate lost revenue. If you are charging a higher average daily rate, you might not need as many bookings to make as much money as a competitor with higher occupancy but a lower nightly rate.

Where can you see Airbnb occupancy rates?

You can see the occupancy rate for your listing as well as that of competitors in the area on your AirDNA dashboard. 

Find out what “Airbnb occupancy rate” refers to, how to calculate it, and tips for improving your occupancy rate and increasing your STR income.

European Market Review: Strong July Demand Meets First ADR Decline in 20 Months

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