Some Airbnbs charge premium rates but struggle to stay booked, while others fill their calendars but at prices that barely turn a profit. So how can you find that sweet spot, or a pricing strategy that brings in strong revenue without sacrificing occupancy? The best short-term rental (STR) operators don't guess when it comes to revenue; they track the right data and adjust accordingly. One of the most important metrics? Airbnb RevPAR.
Finding the right RevPAR is what separates high-performing short-term rentals from the competition. It's so much more than just setting a great nightly rate. It's about understanding how much your property actually earns across all available nights. Because if you're only focusing on what guests pay per stay, you're missing a much bigger piece of the puzzle. Let's jump in.
What is RevPAR in Airbnb?
RevPAR (Revenue Per Available Room) measures the revenue earned per available night for a listing, and it's a common metric used in the hotel industry. It's calculated by multiplying your Average Daily Rate (ADR) by the occupancy rate or dividing total revenue by the total available nights. You'll also see it called Airbnb RevPAN, or revenue per available night, which accounts for the fact that properties are typically booked on Airbnb versus rooms.
Revenue per available room (RevPAR) is a key metric all STR hosts should track. RevPAR helps you measure how effectively you're filling your calendar at profitable rates. It accounts for both pricing and occupancy to give a clearer view of revenue performance.
Put it this way: a high average daily rate (ADR) might look good on paper, but if your occupancy is low, it won't mean much for your bottom line.
Airbnb RevPAR vs ADR
ADR and RevPAR are often mentioned together, but they measure different aspects of your property's performance. While both metrics help you understand revenue, an Airbnb's average daily rate only focuses on its price per booked night, whereas RevPAR considers overall income across all available nights, whether they're booked or not.
In short, ADR tells you how much guests are paying when they stay, but RevPAR shows how well you're actually filling your calendar at profitable rates.
- ADR (average daily rate): The average amount you earn per booked night. It only considers nights that are actually occupied.
- RevPAR (revenue per available room): Factors in all available nights, including unbooked ones.
A property with an ADR of $250 but an occupancy rate of 50% might seem profitable at first, but its RevPAR is only $125 per available night. While a listing with a slightly lower ADR of $200 but a 75% occupancy rate actually brings in $150 per available night, meaning it's generating more revenue over time.
How to calculate Airbnb RevPAR
Here's how to calculate RevPAR for your own Airbnb:
RevPAR = total revenue ÷ total available nights
Alternatively, another RevPAR formula uses ADR and occupancy rate:
RevPAR = ADR × occupancy rate
Using the same examples from earlier:
- A property with a $250 ADR and a 50% occupancy rate:
RevPAR = $250 × 0.50 = $125 per night
- A property with a $200 ADR and a 75% occupancy rate:
RevPAR = $200 × 0.75 = $150 per night
For serious STR operators, it's important not just to focus on setting high nightly rates, but also to look at whether those rates correlate with steady bookings and higher occupancy rates.
Why RevPAR matters for Airbnb hosts and managers
RevPAR is one of the most reliable ways to measure how well your Airbnb pricing and occupancy strategy is working. Again, a high nightly rate doesn't mean much if your calendar isn't filling up, and low prices with full occupancy means you're missing out on revenue. RevPAR balances both, for a clearer picture of your property's performance.
Tracking RevPAR helps you make data-driven pricing decisions rather than relying on intuition. By comparing it to similar listings, you can see whether your rates are competitive and whether you're capturing as much demand as you should. If other properties in your market have a higher RevPAR, it might be time to refine your pricing, adjust your minimum stay requirements, or improve your amenities.
Beyond pricing, RevPAR reveals seasonal trends and booking patterns that can help you optimize revenue year-round. Instead of reacting to slow periods or unexpected dips in bookings, you can adjust proactively by raising rates when demand is high and fine-tuning your strategy when it's not.
For Airbnb hosts and property managers, RevPAR is a key indicator of long-term profitability. Understanding and improving it ensures you're making the most of every available night.
What's the best Airbnb RevPAR?
There's no "best" Airbnb RevPAR, and it depends on several market factors. A high RevPAR in one location might be considered low in another, and that number can even fluctuate throughout the year.
One of the biggest factors is location. In areas like major cities, STRs can command premium rates while maintaining high occupancy, leading to higher RevPAR. Meanwhile, in resort towns or mountain escapes, demand may be more seasonal, requiring a more dynamic pricing approach to maintain a competitive RevPAR.
Seasonality and local events play a huge role, with some markets experiencing peak travel seasons that allow hosts to increase rates without hurting bookings. But, during off seasons, maintaining RevPAR might require adjusting minimum stay requirements or offering discounts to keep occupancy from dipping.
If similar listings in your area have a significantly higher RevPAR, it may indicate that the competition is optimizing their pricing and booking strategy more effectively. Perform a proper competitive analysis to see where your property or strategy is lacking, whether it's better amenities, stronger reviews, or the use of dynamic pricing tools.
And finally, the type of property you have and your target audience matter. For example, a luxury Airbnb's RevPAR is often higher than average because they can charge premium rates while still maintaining demand.
Because so many factors influence RevPAR, you shouldn't be chasing a specific number. Instead, track trends in your market and continuously optimize your pricing strategy to maximize your revenue.
How to improve your Airbnb RevPAR
RevPAR is one of the best indicators of how well your property is performing, and small changes can steadily grow your revenue without relying on constant rate hikes. Here are some tips on how to improve this metric.
1. Optimize your pricing to maximize revenue during high-demand periods
Setting the same rates year-round can cause you to lose revenue during peak demand and struggle to attract bookings in slower seasons. Holidays, festivals, and other major events create surges in demand, and your pricing should reflect that. If you're not raising rates during peak periods (including weekends), you could be missing out on potential revenue.
A smarter approach is to use dynamic pricing tools like SummerOS, which can help you find peak demand periods based on market trends, events, competitor pricing, and seasonality.
2. Increase occupancy
A fully booked calendar at lower rates often generates more revenue than high-priced bookings that only happen once in a while. To maintain strong occupancy, consider targeted discounts for longer stays, last-minute price adjustments for unbooked nights, and optimizing your listing for better search ranking.
Airbnb Superhost status, instant booking, and responding quickly to inquiries can also help you secure more reservations.
3. Improve property positioning
A well-positioned property attracts guests willing to pay more. Invest in high-quality photography, compelling descriptions, and standout amenities that make your listing more desirable. Even small upgrades like premium bedding can allow you to charge higher rates while maintaining strong occupancy.
4. Leverage market data
In today's world, there's no excuse for not leveraging technology. Use real-time analytics to track RevPAR trends, adjust pricing, and compare your performance to similar properties.
Asset management platforms like SummerOS can help you make informed decisions by analyzing market conditions, occupancy patterns, and the competition so that you can maximize your revenue, no matter the season.
Turn Airbnb data into decisions
Airbnb RevPAR is one of the most crucial metrics you can track as a host or manager. It's a key indicator of how efficiently your property is generating revenue. But it's only one piece of the puzzle, and by tracking it alongside pricing trends and occupancy rates, you can make more informed decisions that drive profitability in the long term.
SummerOS gives you the tools to monitor, benchmark, and optimize these metrics, including RevPAR, in real time, helping you maximize every available night. Try SummerOS free for 14 days and start increasing your Airbnb revenue strategy today.
