Are you curious about the state of your holiday rental business? It’s just as vital to track the success of your Airbnb listing as it is to attract new visitors and increase your reservations. It’s a measurable means of keeping track of your finances and resolving major concerns.
We’ll go through the most critical KPIs for your Airbnb company and how you can start calculating them immediately to give you a hand in understanding them. We’ll also go through how to utilize Google Analytics and some of Airbnb’s most recent findings.
What Are Airbnb’s Key Performance Indicators (KPIs)?
The term “key performance indicator” (KPI) refers to a metric that measures how well something is working. It refers to quantitative indicators of your Airbnb listing’s Performance and success.
Airbnb KPIs allow hosts to evaluate their company regularly and make strategic choices based on data rather than emotions. These technologies allow for objective, evidence-based comparisons throughout time, making it simpler to meet objectives and make long-term changes.
There are a plethora of KPIs to choose from. Therefore, we’ve selected the most useful. These tools can help you take your company to the next level, whether you own a small hotel or a cottage:
Rate of Occupancy
The occupancy rate is the number of days visitors lease out a vacation rental within a certain period. You could be perplexed. What does a high Airbnb occupancy rate entail? It’s anything above 65 percent, according to research by AllTheRooms. Consider offering discounts or modifying your price to boost your occupancy rate.
Simply divide the number of booked nights by the total of the available nights to obtain the occupancy rate of your Airbnb listing manually. Consider the case where you leased your home for 15 nights out of a 30-day month. To figure out the occupancy rate, just perform the following:
# of nights booked vs. # of nights available
50 percent Equals 15 x 30
For the provided period, your occupancy rate would be 50%.
Daily Rate Average
The average daily rate of a vacation rental is the amount of money a leased room or property may make in a single day. While it’s a good predictor of how much you can make, it’s not completely accurate since it doesn’t account for expenditures such as taxes.
Divide the total income by the number of booked nights to arrive at this figure. If you leased out five rooms in your B&B that day and made $1,200 in total income, your average daily fee would be $240.
To learn more about ADR, see our Vacation Rental Encyclopedia.
RevPAR, or revenue per available room, is a useful indicator for assessing your company’s performance and increasing revenue.
RevPAR may be calculated in two ways. One method is to multiply the average daily room fee by the occupancy rate, while the other is to divide total room income by the number of rooms available at any one moment.
Let’s imagine you earned $4500 in the previous month with five rooms available. The following would be your RevPAR calculation:
$900 = $4500 x 5
For further information, see our RevPAR item in the Encyclopedia.
Operating Income (Net)
The net operating profit is calculated after removing expenditures such as the Airbnb commission fee, cleaning, maintenance, and administration fees.
Simply remove your operational expenditures from your gross revenue to arrive at the NOI. Let’s say your rental revenue is $200,000, but your costs are $105,000, which includes property management fees, maintenance, insurance, and taxes. The NOI would be calculated as follows:
$95,000 = $200,000 – $105,000
Length of Stay on Average
The average length of stay refers to the average number of nights visitors spend at your property over a certain period. Divide the total number of nights booked for the month by the total number of bookings to get the ALOS.
Consider the following scenario: You had four distinct reservations last month, each with a different number of nights:
1 reservation equals 5 nights
Booking 2 nights equals 3 nights
Booking 3 nights equals 2 nights
Booking 4 nights equals 3 nights
The total number of nights reserved is 13.
ALOS = total number of nights booked x total number of different bookings
ALOS = 13 4 = 3.25 nights ALOS = 13 4 = 3.25 nights ALOS = 13 4 = 3.25 nights ALOS
During the epidemic, the ALOS has risen as workationers seek new places to live and work temporarily. However, as travel kicks up, these figures are expected to fall.
For further information, see our ALOS Wikipedia article.
Getting to Know Airbnb Google Analytics is a tool that allows you to track
You can utilize Google Analytics for your vacation rental website even if you can’t set it up with your Airbnb profile. Google Analytics is an important tool for tracking website traffic, analyzing your audience, and tracking particular pages. As a vacation rental owner, these KPIs reveal a wealth of data that can be utilized to improve your marketing and promotion efforts.
You may also link your rental website to your Airbnb account and create reports on a single platform using Airbnb management software. You’ll be able to assess your company on a wider scale if you use a channel manager to automatically sync your calendars, rates, and reservations from other channels (like Airbnb, Vrbo, and Booking.com).
Key Airbnb Analytics for Hosts
Airbnb understands how vital it is for hosts to keep track of their Performance. Therefore, they make it possible for them to do so. The following is how it works:
- Turn on Airbnb’s Professional Hosting Tools under Account Settings.
- Go to the top of the page and choose Performance.
- Over the last 12 months, you may filter and compare various performance numbers!
In the Performance area, there are seven tabs to explore. We’ll go through each one to show you what you can do with them:
The Airbnb Opportunities section offers advice on how to improve your listing’s competitiveness by offering flexible reservations, prices, hospitality features, and a more appealing look. You’ll be given a list of tailored suggestions as well as tabs to keep track of the facilities and services you provide. You’ll find the items you’ve previously completed, also known as Completed Actions, towards the bottom of the page.
The Quality tab is quite useful for drawing conclusions based on the feedback you’ve received. With specific graphs for overall quality, check-in procedure, cleanliness, communication, location, and value, you’ll be able to gain an overview of guest comments. The nice thing is that you can compare your results to comparable ads or study them over time.
Rates & Occupancy
You may filter and analyze your occupancy rate, cancellation rate, duration of stay, and nightly fee in the Occupancy & Rates area. As previously said, you may compare your property to comparable listings, which can be quite useful when making strategy modifications.
In addition to your booking conversion rate, first-page search impression rate, average search-to-listing conversion, and average listing-to-booking conversion, Conversion Airbnb provides detailed information on your booking conversion rate, first-page search impression rate, and average search-to-listing conversion, and average listing-to-booking conversion. You may also look at your lead time for bookings, average return visitor rate, average page visits, and wishlist additions.
You may get a detailed breakdown of your monthly revenue, which might reveal patterns and seasonality for your unique Airbnb property.
Superhosts: If you want to be a Superhost, Airbnb includes a section that shows you your current status and the steps you need to do to satisfy the requirements. This involves achieving a 4.8 overall rating, a 90% response rate, over 10 completed stays or 100 nights across three or more stays, and a cancellation rate of less than 1%.
While there are no KPIs in the cleaning sector, you will find a cleaning overview, cleaning checklists, materials and services, and resources to assist you!
We hope that you can better position your holiday rental for success by reviewing these Airbnb KPIs. Keep an eye on these numbers, be organized, and be analytical when looking for defects and possibilities. Please leave any queries or questions about the issue in the comments section below, and we’ll respond as soon as possible!