Your Airbnb occupancy rate shows what percentage of available nights get booked. A property available 350 nights per year with 245 bookings runs at 70% occupancy.

Understanding occupancy rate helps you benchmark performance against similar properties, identify revenue opportunities, and adjust pricing strategy. However, occupancy rate alone doesn’t determine profitability – the relationship between bookings and nightly rate matters more than either metric individually.

What is Airbnb Occupancy Rate

Occupancy rate measures the proportion of nights your property is booked compared to nights available for booking. It appears as a percentage and directly affects your annual revenue alongside your average daily rate.

The calculation excludes nights you block for personal use, maintenance, or seasonal closures. Only nights actively available to guests count in the formula. This means a property available year-round has 365 nights in the calculation, while a property you block for two weeks annually uses 351 nights.

Airbnb displays occupancy data in your hosting dashboard under Performance. You can view occupancy by week, month, or year, and compare your rate to similar properties in your area. This comparison reveals whether your occupancy sits above, below, or at market average.

High occupancy suggests strong demand, competitive pricing, or both. Low occupancy indicates potential issues with pricing, listing presentation, location competitiveness, or property appeal. However, occupancy alone never tells the complete story – revenue per available night matters more than occupancy percentage.

How to Calculate Your Airbnb Occupancy Rate

Calculate occupancy rate by dividing booked nights by available nights, then multiplying by 100 to get a percentage.

Occupancy Rate Formula: Occupancy Rate = (Booked Nights ÷ Available Nights) × 100

Step-by-step calculation:

1. Count your total booked nights during the period (month, quarter, or year)
2. Count your total available nights during the same period
3. Divide booked nights by available nights
4. Multiply the result by 100

Example calculation for London 2-bedroom in Shoreditch:

A 2-bedroom flat in Shoreditch was available for 340 nights in 2025 (you blocked 25 nights for personal use and maintenance). The property received 238 bookings during the year.

Occupancy Rate = (238 ÷ 340) × 100 = 70%

This 70% occupancy sits slightly below London’s 74% average but might generate higher revenue if your nightly rate exceeds the local average of £137.

What counts as available nights:

• Nights your calendar shows as available to book
• Nights between bookings when the property sits empty
• Nights priced too high to attract bookings

What doesn’t count as available nights:

• Nights you block for personal use
• Nights blocked for maintenance or repairs
• Nights blocked for seasonal closure
• Nights between setting up your listing and your first booking

Track occupancy monthly to spot seasonal patterns and yearly to measure overall performance. Monthly tracking reveals which months underperform and need pricing adjustments.

What is a Good Airbnb Occupancy Rate in 2026

A good occupancy rate depends on your property location, type, and pricing strategy. No single percentage defines success across all properties.

General benchmarks:

• 60% to 70%: Good occupancy for most markets
• 70% to 80%: Excellent occupancy showing strong demand
• 80%+: Exceptional occupancy, rarely sustained year-round
• Below 50%: Low occupancy requiring immediate attention

However, these benchmarks need context. A luxury property in Kensington earning £250 per night at 55% occupancy generates more revenue than a budget flat in Stratford earning £90 per night at 80% occupancy.

By property tier:

Budget properties (under £100/night): Target 75% to 85% occupancy. Lower nightly rates require high booking frequency to generate acceptable revenue. These properties compete heavily on price and need consistent bookings to remain profitable.

Mid-market properties (£100-£180/night): Target 65% to 75% occupancy. This range balances booking frequency with nightly rate. Most London Airbnbs fall into this category and perform well at these levels.

Premium properties (£180-£250/night): Target 55% to 70% occupancy. Higher rates mean fewer bookings needed for strong revenue. Focus shifts from maximizing bookings to attracting quality guests willing to pay premium prices.

Luxury properties (£250+/night): Target 45% to 60% occupancy. These properties prioritize rate over occupancy. A luxury 3-bedroom in Kensington at 50% occupancy and £280/night outearns a mid-market property at 75% occupancy and £140/night.

The best occupancy rate for your property is the one that generates maximum annual revenue while maintaining acceptable profit margins after expenses. Sometimes lower occupancy at higher rates produces better results than high occupancy at lower rates.

London Airbnb Occupancy Benchmarks in 2026

According to the Greater London Authority‘s snapshot on tourist accommodation trends, London’s overall Airbnb occupancy rate sits at 74% in 2026, but this varies significantly by borough, property type, and location.

Occupancy by London borough:

Zone 1 boroughs:

• Westminster: 81% average occupancy, £227 average daily rate
• Kensington and Chelsea: 77% average occupancy, £243 average daily rate
• Camden: 80% average occupancy, £172 average daily rate
• City of London: 68% average occupancy, £216 average daily rate

Zone 2-3 boroughs:

• Hackney: 72% average occupancy, £141 average daily rate
• Islington: 75% average occupancy, £147 average daily rate
• Southwark: 76% average occupancy, £144 average daily rate
• Tower Hamlets: 73% average occupancy, £132 average daily rate
• Lambeth: 74% average occupancy, £138 average daily rate

Zone 3-4 boroughs:

• Greenwich: 71% average occupancy, £127 average daily rate
• Lewisham: 68% average occupancy, £108 average daily rate
• Newham: 70% average occupancy, £127 average daily rate
• Croydon: 58% average occupancy, £92 average daily rate

Outer boroughs:

• Hillingdon: 64% average occupancy, £77 average daily rate
• Havering: 55% average occupancy, £105 average daily rate
• Bexley: 60% average occupancy, £84 average daily rate

Westminster leads London occupancy at 81% due to constant tourist demand, proximity to major attractions, and business travel. The borough’s central location attracts both leisure and corporate guests year-round.

Camden achieves 80% occupancy with lower nightly rates than Westminster or Kensington. The area appeals to younger travelers, music fans, and visitors seeking vibrant nightlife alongside tourist access.

Kensington maintains 77% occupancy despite the highest average daily rate at £243. Luxury positioning, premium properties, and wealthy international visitors sustain strong booking rates even with higher pricing.

Outer boroughs like Croydon and Hillingdon show lower occupancy (55-64%) but attract budget-conscious travelers, airport users, and guests needing affordable longer stays. These areas compete on price rather than location.

By property type:

Entire homes average 72% occupancy across London. Private rooms average 76% occupancy due to lower pricing and appeal to solo travelers and budget guests. Shared rooms average 68% occupancy – lowest demand but cheapest option.

Studios and 1-bedroom properties achieve 75% to 78% occupancy. These sizes attract couples, solo business travelers, and short-stay tourists. High demand combines with manageable pricing to sustain strong bookings.

2-bedroom properties average 72% to 74% occupancy. They balance space with affordability for small groups, families with one child, or friends traveling together.

3+ bedroom properties average 65% to 70% occupancy. Larger properties face narrower demand from big groups and families but command significantly higher nightly rates.

UK City Occupancy Rate Comparisons

London’s 74% occupancy sits mid-range among major UK cities. Other cities show different patterns based on tourism seasonality, supply levels, and local demand.

UK city occupancy rates 2026:

Edinburgh: 84% average occupancy, £141 average daily rate Edinburgh leads UK cities in occupancy due to year-round festivals, limited property supply (approximately 5,000 active listings), and strong international tourism. The Edinburgh Festival in August drives occupancy above 95% for three weeks.

Bristol: 71% average occupancy, £103 average daily rate Bristol matches London’s occupancy level but with significantly lower nightly rates. The city attracts weekend tourists, business travelers, and university visitors but lacks London’s sustained international demand.

Manchester: 61% average occupancy, £100 average daily rate Manchester shows lower occupancy than London despite similar property supply. Business travel dominates weekdays while weekends see leisure tourism. The city experiences stronger weekday occupancy than weekend occupancy – opposite of most UK markets.

Glasgow: 73% average occupancy, £109 average daily rate Glasgow maintains steady occupancy year-round with balanced tourism and business travel. Lower supply than London (1,700 active listings) supports consistent booking rates.

Bath: 70% average occupancy, £152 average daily rate Bath achieves strong occupancy with nightly rates matching London despite being a smaller city. World Heritage status, spa tourism, and proximity to London create consistent demand.

Belfast: 70% average occupancy, £103 average daily rate Belfast occupancy matches Bath and Bristol. Growing tourism, cruise ship visitors, and Game of Thrones location tours sustain bookings throughout the year.

London’s occupancy advantage comes from massive demand rather than limited supply. With 49,000+ active listings, London maintains 74% occupancy through sheer visitor volume. Edinburgh achieves higher occupancy (84%) with far fewer properties competing for bookings.

However, London’s £152 average daily rate means many hosts earn more with lower occupancy than Edinburgh hosts at higher occupancy but £141 average rate. A London host at 70% occupancy earning £152/night generates £38,836 annually. An Edinburgh host at 84% occupancy earning £141/night generates £43,254 annually – only 11% more revenue despite 14 percentage points higher occupancy.

Occupancy Rate vs Revenue: The Critical Balance

Occupancy rate measures booking frequency. Revenue measures actual earnings. High occupancy doesn’t guarantee high revenue, and low occupancy doesn’t indicate failure.

The relationship between occupancy and revenue depends on your pricing strategy. You can achieve identical annual revenue with vastly different occupancy rates.

Revenue comparison example:

Property A – High occupancy strategy:

• Location: Stratford, East London
• Nightly rate: £95
• Occupancy: 82%
• Available nights: 350
• Booked nights: 287
• Annual revenue: £27,265

Property B – Premium pricing strategy:

• Location: Kensington, West London
• Nightly rate: £185
• Occupancy: 58%
• Available nights: 350
• Booked nights: 203
• Annual revenue: £37,555

Property B earns £10,290 more annually (38% higher revenue) with 24 percentage points lower occupancy. The premium pricing strategy produces superior results despite fewer bookings.

This demonstrates why occupancy rate alone never determines success. Revenue per available night (RevPAN) provides better insight into property performance.

Revenue per available night formula: RevPAN = Total Annual Revenue ÷ Total Available Nights

Using the properties above:

• Property A RevPAN: £27,265 ÷ 350 = £77.90
• Property B RevPAN: £37,555 ÷ 350 = £107.30

Property B generates £29.40 more per available night – a 38% improvement over Property A. This metric accounts for both pricing and occupancy in one number.

The occupancy-revenue sweet spot:

Most London properties maximize revenue somewhere between 60% and 75% occupancy. Below 60%, you’re leaving too many nights empty even with premium pricing. Above 75%, you’ve likely priced too low and could increase rates without significant booking loss.

Test your sweet spot by gradually increasing prices and monitoring occupancy changes. If a 10% rate increase drops occupancy by less than 9%, you’ve increased revenue. If occupancy drops more than 10%, you’ve priced too high.

When to prioritize occupancy:

Chase high occupancy when you operate budget properties with low nightly rates. These properties need maximum booking frequency to cover fixed costs like mortgage, utilities, and cleaning.

New properties benefit from high occupancy in the first 3-6 months. More bookings generate more reviews, and reviews drive future bookings. Accept lower rates initially to build review count quickly.

Properties with high fixed costs need consistent occupancy to remain profitable. If your mortgage, service charges, and other fixed expenses consume 60% of potential revenue, you need at least 65% occupancy just to break even.

When to prioritize nightly rate:

Premium properties in prime locations should focus on rate over occupancy. These properties attract guests willing to pay for quality, location, and amenities. Discounting to chase occupancy degrades brand positioning.

Experienced hosts with 50+ positive reviews can maintain higher rates with lower occupancy. Reviews provide social proof that sustains bookings despite premium pricing.

Properties in high-demand locations (Westminster, Kensington, Camden) can afford lower occupancy. Location scarcity supports premium pricing regardless of booking frequency.

Seasonal Occupancy Patterns in London

London Airbnb occupancy fluctuates throughout the year based on tourism patterns, weather, events, and business travel cycles.

Month-by-month London occupancy 2026:

January: 62% average occupancy Post-holiday low point. Business travel resumes mid-month but leisure tourism remains quiet. January sales attract some shopping tourists. Budget pricing becomes essential to maintain bookings.

February: 64% average occupancy Slight improvement over January. Half-term school holidays (mid-February) create family travel spike. Valentine’s weekend drives short-break bookings. Still the quietest quarter overall.

March: 70% average occupancy Spring tourism begins. Easter falls in April 2026 but March sees advance bookings. Weather improves, daylight hours extend, and international tourism picks up significantly.

April: 73% average occupancy Easter holiday drives strong bookings. School holidays across UK and Europe fill family-sized properties. Marathon weekend (late April) creates peak demand in East London.

May: 76% average occupancy Late spring peak begins. Bank holidays (early and late May) extend weekends and drive domestic tourism. Chelsea Flower Show attracts visitors. Weather reliability improves.

June: 78% average occupancy Early summer peak continues. Wimbledon tennis (late June/early July) creates demand surge in Southwest London. Trooping the Colour and other royal events attract visitors. Long daylight hours and warm weather sustain tourism.

July: 82% average occupancy Peak tourism month alongside August. School holidays begin. International visitors flood London. Proms season starts. West End shows run at capacity. Premium pricing achievable across all property types.

August: 83% average occupancy Second peak month. Full school holiday period. Notting Hill Carnival (late August) drives massive demand in West London. Some business travel pauses but tourism compensates fully.

September: 79% average occupancy Post-summer but still strong. Business travel returns. London Fashion Week attracts industry visitors. Weather remains pleasant. Families with young children finish travel but other segments continue.

October: 80% average occupancy Autumn peak. Half-term school holiday creates booking surge. Conference season fills hotels, pushing some business travelers to Airbnb. Leaf-peeping tourism in London parks. Surprisingly strong month.

November: 68% average occupancy Occupancy drops but remains acceptable. Bonfire Night weekend busy. Black Friday shopping tourism. Christmas markets begin late November. Business travel strong but leisure tourism weakens.

December: 70% average occupancy Christmas and New Year bookings offset mid-month weakness. Properties near Oxford Street, Covent Garden, and Winter Wonderland see premium demand. Many hosts close for personal use, reducing available nights and supporting occupancy rates.

Seasonal pricing strategy:

Increase rates 15% to 25% during peak months (July, August, October). Demand supports premium pricing without occupancy loss.

Decrease rates 10% to 20% during low months (January, February, November) to maintain acceptable occupancy. Even discounted bookings contribute to fixed costs.

Maintain standard rates during shoulder months (March, April, September, December). These months balance pricing and occupancy naturally.

Event-driven demand spikes:

Major events create temporary occupancy and pricing opportunities:

• Wimbledon (late June/early July): Southwest London occupancy exceeds 95%
• Notting Hill Carnival (August): West London occupancy above 90%
• London Marathon (April): East London occupancy spikes
• Fashion Week (September, February): Central London premium bookings
• Major concerts at Wembley, O2: Local area occupancy jumps

Track London event calendars and adjust pricing 60-90 days ahead of major events. Early pricing captures eager bookers while leaving room to increase rates as availability tightens. With all these events boosting demand, it’s smart to line up reliable support to keep your property spotless and ready for back-to-back bookings – thorough holiday rental cleans that make a real difference in guest reviews and repeat stays.

Factors That Affect London Airbnb Occupancy Rates

Multiple elements influence whether guests book your property. Understanding these factors helps you identify which areas you can improve.

Location and Borough

Location determines baseline occupancy potential. Central boroughs with tourist attractions sustain higher occupancy than outer areas.

Westminster averages 81% occupancy because visitors want proximity to Westminster Abbey, Buckingham Palace, Parliament, and West End theatres. Location alone drives bookings regardless of property quality.

Tower Hamlets achieves 73% occupancy despite fewer major attractions. Proximity to the City, Canary Wharf business district, and East End nightlife creates demand from business travelers and younger tourists.

Outer boroughs face occupancy challenges from location. Croydon at 58% occupancy struggles despite lower pricing because distance from central attractions discourages bookings. Only travelers specifically needing South London or Gatwick Airport access choose these locations.

Transport connectivity matters as much as zone. Properties within 5 minutes of Underground stations average 8% to 12% higher occupancy than those requiring 15-minute walks. Bus-only access reduces occupancy further.

Property Type and Size

Different property types attract different guest segments with varying demand levels.

Entire homes averaging 72% occupancy appeal to families, groups, and privacy-seeking travelers. These guests pay premium rates for exclusive property access.

Private rooms at 76% occupancy attract solo travelers and couples on budgets. Lower pricing per guest and ability to host multiple groups simultaneously (if you rent multiple rooms) sustains higher occupancy.

Studios and 1-bedroom properties achieve highest occupancy (75-78%) because they match the most common travel party size – couples and solo travelers. High demand combines with manageable pricing.

2-bedroom properties at 72-74% occupancy serve small families, friends traveling together, and extended-stay business travelers. This size balances space and affordability effectively.

3+ bedroom properties at 65-70% occupancy face narrower demand. Only large groups and families need this much space. However, nightly rates compensate for lower booking frequency.

Pricing Strategy

Your nightly rate directly affects occupancy. Price too high and bookings drop. Price too low and you fill the calendar but earn less overall.

Properties priced 10% to 15% below local average for similar properties typically achieve 5% to 8% higher occupancy. This pricing attracts budget-conscious travelers comparison shopping in your area.

Properties priced at local average achieve average occupancy (70-75% in most London boroughs). You blend into the competition and win bookings based on photos, reviews, and listing quality.

Properties priced 10% to 20% above local average achieve 8% to 12% lower occupancy but often generate higher revenue. Premium pricing signals quality and attracts guests willing to pay for superior properties.

Dynamic pricing tools that adjust rates based on demand, seasonality, and local events can increase occupancy by 10% to 15% compared to static pricing. These tools lower rates during slow periods to capture bookings and raise rates during peak demand.

Weekend vs weekday pricing matters in London. Leisure travelers dominate weekends while business travelers fill weekdays. Many hosts charge 20% to 30% more for Friday and Saturday nights. This maximizes weekend revenue while maintaining weekday occupancy through competitive pricing.

Listing Quality and Presentation

How you present your property significantly affects booking conversion rates and occupancy.

Professional photography increases occupancy by 12% to 18% compared to amateur phone photos. Professional images show properties in best light, use wide-angle lenses for space perception, and create emotional appeal that drives bookings.

Properties with 20+ high-quality photos average 15% higher occupancy than those with under 10 photos. More images reduce uncertainty and help guests visualize their stay.

Detailed, accurate descriptions that clearly explain location, amenities, house rules, and what guests can expect reduce booking hesitation. Vague or minimal descriptions create doubt that kills bookings.

Instant Book feature increases occupancy by 8% to 12% for established properties with good reviews. Guests increasingly filter search results to show only Instant Book properties. However, new properties without reviews should avoid Instant Book until they establish reputation.

Review Count and Ratings

Reviews provide social proof that directly impacts booking decisions and occupancy.

Properties with under 10 reviews average 15% to 20% lower occupancy than similar properties with 50+ reviews. New properties struggle until they build review credibility.

Overall rating below 4.5 stars significantly damages occupancy. Guests filter out low-rated properties during search. Properties rated 4.8+ achieve 10% to 15% higher occupancy than those rated 4.5 to 4.7.

Recent reviews matter more than old reviews. Properties with 5+ reviews from the past 60 days achieve better occupancy than properties with many reviews but none recent. Airbnb’s algorithm favors active properties with current guest feedback.

Cleanliness rating below 4.7 stars specifically hurts occupancy more than other rating categories. Guests prioritize cleanliness above location, value, or communication ratings.

Response Time and Communication

How quickly and thoroughly you respond to inquiries and messages affects booking conversion.

Response rate below 90% reduces occupancy by 8% to 12%. Guests contacting multiple hosts often book with whoever responds first. Slow responses lose bookings to faster competitors.

Response time over 2 hours reduces booking conversion significantly. Most guests expect responses within 1 hour during daytime. Automated messages confirming receipt of inquiry help maintain engagement while you prepare detailed responses.

Pre-approval and special offers sent immediately to inquiring guests increase booking conversion by 25% to 40%. These actions show eagerness to host and create urgency for guests.

Amenities and Features

Certain amenities significantly affect occupancy in London properties.

WiFi is non-negotiable – absence reduces occupancy by 30%+ as most guests filter out properties without it. Speed matters too. Properties advertising speeds above 100 Mbps achieve 5% higher occupancy than those with basic WiFi.

Washing machine increases occupancy by 8% to 12% for properties targeting stays over 4 nights. Business travelers and families specifically seek this amenity.

Kitchen facilities affect occupancy differently by location. Central London properties without kitchens lose 10% occupancy. Outer London properties need full kitchens – absence reduces occupancy by 20%+.

Parking increases occupancy by 12% to 18% in outer boroughs where street parking is difficult. Central London parking adds less occupancy value (5-8%) because most visitors use public transport.

Air conditioning adds 10% to 15% occupancy during summer months (June-August) as London temperatures increasingly exceed comfortable levels.

Minimum and Maximum Stay Requirements

Your stay length requirements directly affect booking opportunities and occupancy.

1-night minimum maximizes occupancy potential by accepting all booking lengths. However, 1-night stays increase turnover costs, cleaning frequency, and guest management workload.

2-night minimum reduces occupancy by 5% to 8% but improves profitability per booking by reducing turnover costs. This represents the sweet spot for most London properties.

3-night minimum reduces occupancy by 12% to 15% but attracts more serious travelers and reduces hosting workload. Works best for properties targeting tourists rather than business travelers.

7+ night minimums reduce occupancy by 30%+ unless specifically targeting long-term stays, relocating professionals, or monthly bookings. These longer minimums work in specific niches but kill short-term tourism bookings.

Maximum stay limits (capping bookings at 14, 21, or 28 nights) can increase occupancy by 3% to 5% by preventing one long booking from blocking your calendar during high-demand periods. However, they reduce revenue from extended stays.

Competition and Market Saturation

How many similar properties compete in your area affects your occupancy potential.

Westminster with 7,200+ active listings creates intense competition despite high demand. Properties must excel in multiple areas (photos, pricing, reviews, amenities) to achieve above-average occupancy.

Outer boroughs with 200-400 listings face less competition. Even average properties achieve decent occupancy because guests have fewer alternatives.

New supply entering your area reduces everyone’s occupancy. When 50 new properties list in your borough, existing properties lose 2% to 4% occupancy on average as bookings spread across more options.

Property differentiation becomes critical in competitive areas. Unique features (roof terrace, original period features, exceptional design) help properties stand out and maintain occupancy despite competition.

Regulatory Environment

London’s evolving short-term rental regulations affect occupancy patterns.

The 90-night rule limiting primary residence short-term lets to 90 nights annually affects many hosts. Properties approaching this limit must either close or switch to long-term lets, reducing available nights but potentially increasing occupancy rate for remaining compliant properties.

Planning permission requirements for secondary homes and investment properties used exclusively for short-term rental reduce overall supply. Hosts without proper permissions exit the market, reducing competition and supporting occupancy for compliant properties.

Registration requirements coming into effect across London boroughs in 2026 create compliance costs and administrative burden. Some hosts exit rather than dealing with bureaucracy, again reducing competition for remaining hosts.

These regulations reduced London’s active listings by approximately 12% from 2025 to 2026, increasing average occupancy from 71% to 74% for properties that remain compliant and active.

How to Improve Your Airbnb Occupancy Rate in London

Specific actions increase occupancy without sacrificing profitability. These strategies work for London properties in 2026.

Optimize Your Pricing Strategy

Pricing directly affects occupancy. Test these approaches to find your sweet spot.

Set competitive base rates. Research 10-15 similar properties in your borough. Check their nightly rates for the next 30 days. Price yourself within £10-15 of the median rate. This positions you competitively while leaving room for rate testing.

Implement weekend premiums. Increase Friday and Saturday rates by 20-30% in tourist areas (Westminster, Camden, Kensington, Southwark). Maintain standard rates Monday-Thursday. This captures weekend premium without hurting weekday occupancy.

Create last-minute discounts. Reduce rates by 15-25% for bookings made within 7 days of check-in. Empty nights generate zero revenue. Discounted bookings at least cover variable costs and contribute to fixed costs.

Use length-of-stay discounts. Offer 10% discount for 7+ night stays, 15% discount for 28+ night stays. Longer bookings reduce turnover costs, cleaning frequency, and management time. The discount pays for itself through reduced expenses.

Test dynamic pricing tools. Services like PriceLabs or Wheelhouse adjust your rates daily based on demand signals, competitor pricing, seasonality, and local events. Properties using dynamic pricing average 12-15% higher revenue than static pricing, achieved through optimized occupancy and rates.

Improve Listing Presentation

How you present your property affects whether browsers become bookers.

Invest in professional photography. Budget £200-400 for professional property photographer. Schedule photography during daytime for natural light. Style the property before shooting – flowers, fresh linens, clean surfaces. Professional photos increase bookings by 15-20% consistently.

Write compelling descriptions. Lead with your unique selling point – roof terrace, period features, proximity to specific attraction. Use specific details instead of generic descriptions. “5-minute walk to Covent Garden, 2 minutes to Leicester Square tube” beats “centrally located.”

Add 20+ photos. Show every room from multiple angles. Include bathroom details, kitchen equipment, street view, nearby transport, local attractions. More photos reduce uncertainty and increase booking confidence.

Create a guidebook. Include local restaurants, cafes, supermarkets, transport instructions, area highlights. Detailed guidebooks signal you’re an experienced, helpful host who cares about guest experience.

Update photos seasonally. Replace winter photos with summer shots showing garden or balcony in use. Add Christmas decorations in December. Seasonal updates keep listings feeling current.

Enhance Property Amenities

Strategic amenity additions increase occupancy by attracting wider guest segments.

Upgrade WiFi speed. Install 100+ Mbps fiber connection. Test speed and advertise actual speeds in listing. Business travelers and remote workers filter specifically for fast WiFi. This single upgrade can increase weekday business travel bookings by 15-20%.

Add workspace setup. Create dedicated desk area with comfortable chair, good lighting, and power outlets. Photograph it prominently. Remote work travelers specifically search for workspace amenities.

Provide streaming services. Subscribe to Netflix, Amazon Prime, or other streaming platforms. Link accounts to smart TV. Entertainment options appeal to evening guests and rainy day situations.

Stock kitchen thoroughly. Provide basic cooking oil, salt, pepper, tea, coffee, sugar, milk. Include quality cookware, sharp knives, cutting boards. Guests notice kitchen quality and mention it in reviews.

Install smart locks. Self-check-in removes coordination hassle and appeals to independent travelers. Properties with smart lock access average 8-10% higher occupancy than those requiring in-person key exchange.

Add washing machine. This amenity increases bookings from business travelers and families staying 4+ nights. Properties with washing machines achieve 10-12% higher occupancy for stays over 4 nights.

Optimize Your Listing Settings

Airbnb’s platform settings affect your visibility and booking conversion.

Enable Instant Book. Properties with Instant Book get algorithm priority and appear higher in search. Guest filters often exclude non-Instant Book properties. However, only enable this once you have 10+ positive reviews and feel confident screening guests through Airbnb’s verification.

Reduce minimum stay requirements. Change from 3-night to 2-night minimum. This opens your property to weekend bookings that you currently reject. You can still manually accept longer bookings while capturing short stays.

Extend booking window. Open your calendar 12 months ahead instead of 6 months. Guests planning trips 6+ months out can only book properties with calendars that far open. This captures early planners.

Adjust advance notice. Reduce advance notice requirement from 2-3 days to “same day” or “1 day.” Last-minute travelers represent significant booking volume. Capturing these bookings increases occupancy by 5-8%.

Review and update house rules. Remove unnecessary restrictions. Each restriction (no children, no pets, no parties, no smoking) is standard, but excessive rules (no shoes inside, quiet hours starting at 8pm, no cooking after 10pm) deter bookings.

Build Strong Reviews Quickly

Reviews drive future bookings. Accelerate review collection through active management.

Ask guests for reviews. Send message 24 hours after checkout thanking them and mentioning you’d appreciate a review. Hosts who ask receive reviews on 75% of bookings vs 45% for hosts who don’t ask.

Leave reviews immediately. Review guests within 24 hours of checkout. Airbnb hides host reviews until guests review you, creating incentive for guests to review you so they can see what you wrote.

Respond to every review. Thank positive reviews publicly. Address negative reviews professionally, explaining what you’ve fixed. Future guests read responses and judge whether you handle feedback well.

Fix issues immediately. One bad review hurts occupancy for months until you average it out with new positive reviews. Respond to any guest concern during their stay, fixing problems before they become review complaints.

Create review-worthy moments. Leave welcome notes, small amenities (chocolates, local guidebook, wine), or helpful touches (umbrella, phone chargers, toiletries). Guests remember these details and mention them in reviews.

Target Specific Guest Segments

Different guest types have different needs. Position your property for segments with high demand.

Business travelers. Emphasize WiFi speed, workspace, transport proximity to business districts. Price competitively Monday-Thursday. Target Canary Wharf, City, King’s Cross, Paddington areas. Business travel sustains weekday occupancy.

Families. Highlight space, safety features, nearby parks and attractions. Provide travel cot, high chair, kids’ books and toys. Target school holiday periods. Family bookings tend to be longer (4-7 nights).

International tourists. Translate listing to multiple languages. Provide detailed transport instructions. Emphasize proximity to major attractions. These guests drive July-September peak season.

Relocating professionals. Offer monthly stays at discount. These guests need temporary accommodation while settling in London. They book 28+ nights, providing stable occupancy and minimal turnover.

Event attendees. Track London events (concerts, conferences, sports, festivals). Adjust pricing upward for events near your property. Create targeted messaging for event dates.

Maintain Exceptional Cleanliness

Cleanliness rating affects occupancy more than any other review category. Properties rated below 4.7 for cleanliness suffer 15-20% occupancy loss.

Hire professional cleaners. DIY cleaning rarely achieves professional standards consistently. Professional Airbnb cleaning services understand short-term rental requirements and maintain consistent quality.

Use detailed checklists. Provide cleaners with room-by-room task lists. Check their work initially to ensure standards. Consistent processes create consistent results.

Deep clean monthly. Schedule quarterly deep cleans covering areas beyond standard turnovers – windows, skirting boards, appliances, grout, curtains. Deep cleaning prevents gradual quality decline.

Replace linens regularly. Bed linens and towels wear out faster with commercial washing. Replace towels every 12-18 months, bed linens every 18-24 months. Fresh, bright linens signal quality. Better Maid provides hotel quality linen hire service. 

Check between every stay. Either clean yourself or inspect cleaner’s work. Catch missed details before guests arrive. One dirty glass or dusty surface creates negative first impression that affects entire review.

For hosts managing cleaning costs alongside occupancy targets, professional services that understand short-term rental turnovers provide better results than general cleaners.

Respond Quickly to Inquiries

Response speed affects booking conversion significantly.

Enable instant notifications. Turn on push notifications for Airbnb app. Set up text message alerts for new inquiries. The first host to respond often wins the booking.

Pre-write response templates. Create templates for common questions (check-in process, nearby attractions, transport, parking). Customize templates with specific names and details. This lets you respond within 15 minutes consistently.

Send pre-approvals generously. Pre-approve inquiries immediately if the guest seems appropriate. This creates urgency and signals your eagerness to host them. Many guests book immediately after receiving pre-approval.

Answer thoroughly. Generic short responses create doubt. Provide detailed answers that demonstrate knowledge and build trust. Helpful responses convert browsers into bookers.

2026 Regulatory Impact on London Occupancy

London’s short-term rental regulatory landscape changed significantly in 2026, affecting occupancy patterns and host strategies.

Registration Requirements

All London boroughs now require short-term rental registration. Hosts must register properties with local council, provide owner details, and confirm compliance with planning regulations.

Registration created administrative burden and compliance costs. Some hosts exited the market rather than dealing with bureaucracy. This reduced total active listings by approximately 8-12% depending on borough.

Remaining compliant hosts benefited from reduced competition. Properties with proper registration now appear in official listings that some booking platforms prioritize. Occupancy rates for registered properties increased 3-5% on average compared to 2025.

90-Night Rule Enforcement

The 90-night annual limit for primary residences without planning permission received increased enforcement in 2026. Boroughs actively monitor booking platforms and issue fines for violations.

This affects hosts using entire primary homes for short-term rental. Once you reach 90 nights, you must either stop accepting bookings or obtain planning permission for commercial use.

Properties approaching 90-night limits show restricted availability that reduces annual occupancy rate but doesn’t indicate performance failure. A property available only 90 nights but booked 78 nights shows 87% occupancy – excellent performance within regulatory constraints.

Host strategies for 90-night limits:

• Track nights carefully to avoid violations
• Switch to private room rentals (not subject to 90-night limit)
• Obtain planning permission for full commercial use
• Use remaining nights strategically during peak season for maximum revenue

Planning Permission Requirements

Properties used exclusively for short-term rental without owner residence now require planning permission in most London boroughs. This affects investment properties and second homes.

Obtaining planning permission costs £500-2,000 and requires 6-12 weeks processing. Some applications get rejected based on neighborhood concerns, building restrictions, or borough policies.

Hosts operating without required permission face enforcement action, fines, and booking platform delisting. This pushed non-compliant hosts out of the market.

Compliant properties with proper permissions benefit from reduced competition and can operate year-round without booking limits. These properties maintain occupancy at or above pre-regulation levels.

Impact on Market Supply and Occupancy

Combined regulations reduced London’s active short-term rental supply by 12% from 2025 to 2026. This represents approximately 6,700 fewer properties competing for bookings.

The supply reduction increased occupancy for remaining compliant properties. London’s average occupancy rose from 71% in 2025 to 74% in 2026 – a 3 percentage point improvement driven partially by regulatory changes.

Westminster and Kensington saw the largest supply reductions (15-18%) as enforcement targeted tourist-heavy boroughs. Occupancy in these areas increased 4-5 percentage points.

Outer boroughs with lighter enforcement saw smaller supply reductions (5-8%) and modest occupancy improvements (1-2 percentage points).

Future Regulatory Outlook

Expect continued tightening through 2026-2027. Proposals include:

• Mandatory minimum stay requirements (reducing party bookings)
• Noise monitoring requirements for high-density areas
• Annual licensing fees (£200-500 depending on borough)
• Stricter enforcement of existing 90-night limits

Hosts operating professionally with proper compliance will benefit from further competitor exits. Occupancy rates for fully compliant, properly managed properties should remain stable or improve slightly as regulations reduce casual hosting.

How to Track Your Occupancy Rate

Monitor occupancy regularly to spot trends and adjust strategy promptly.

Using Airbnb’s Performance Dashboard

Airbnb provides occupancy data in the Performance section of your hosting dashboard. This shows:

• Current occupancy rate (last 30, 90, or 365 days)
• Comparison to similar properties in your area
• Booking trends over time
• Revenue alongside occupancy

Check your dashboard weekly to monitor recent performance. Look specifically at comparison to similar properties. If your occupancy runs 10%+ below similar properties, investigate causes – pricing, photos, reviews, or amenities might need attention.

Monthly review provides better trend data than weekly checks. Occupancy naturally fluctuates week to week. Monthly patterns reveal whether you’re trending up or down.

Manual Tracking

Calculate occupancy manually using your calendar and booking records:

1. Open a spreadsheet
2. Record total nights available each month
3. Record total nights booked each month
4. Calculate monthly occupancy = (booked ÷ available) × 100
5. Track month-over-month changes
6. Compare same month previous year

This manual tracking reveals seasonal patterns Airbnb’s dashboard doesn’t emphasize. You’ll spot which months consistently underperform and need pricing adjustments.

Property Management Software

Tools like Hospitable, Guesty, or OwnerRez track occupancy automatically across multiple booking platforms. These services show:

• Combined occupancy across Airbnb, Vrbo, Booking.com
• Revenue per available night (RevPAN)
• Booking pace (how quickly you fill future dates)
• Comparison to your own historical performance

Property management software provides deeper insights than Airbnb’s native dashboard, especially for hosts managing multiple properties or listing on multiple platforms.

Setting Occupancy Targets

Create realistic monthly occupancy targets based on seasonal patterns:

Peak months (July, August, October): Target 80-85% occupancy Shoulder months (April, May, June, September): Target 72-78% occupancy Standard months (March, November, December): Target 65-72% occupancy Low months (January, February): Target 55-65% occupancy

Adjust pricing monthly to hit these targets. If you’re exceeding targets, test higher rates. If you’re missing targets, reduce rates by 10-15% and monitor booking response.

FAQs

What is a good occupancy rate for Airbnb in London?

A good occupancy rate for London Airbnbs ranges from 65% to 75%, but the ideal rate depends on your property type and pricing strategy. Budget properties under £100/night should target 75-85% occupancy. Mid-market properties (£100-180/night) perform well at 65-75% occupancy. Premium properties over £180/night often maximize revenue at 55-70% occupancy. London’s overall average sits at 74% in 2026.

How do you calculate Airbnb occupancy rate?

Calculate occupancy rate by dividing booked nights by available nights, then multiplying by 100. The formula is: Occupancy Rate = (Booked Nights ÷ Available Nights) × 100. Available nights exclude dates you block for personal use or maintenance. Only count nights your property could actually receive bookings.

What is London’s average Airbnb occupancy rate?

London’s average Airbnb occupancy rate is 74% in 2026, but this varies significantly by borough. Westminster achieves 81% occupancy, Camden 80%, and Kensington 77%. Outer boroughs like Croydon average 58% occupancy. Your borough, property type, and pricing strategy all affect where your occupancy falls relative to the city average.

Is 50% occupancy bad for Airbnb?

Not necessarily. Occupancy rate alone doesn’t determine success – revenue matters more. A luxury property at 50% occupancy earning £250/night generates more revenue than a budget property at 80% occupancy earning £90/night. Evaluate occupancy alongside nightly rate to determine actual performance. Properties priced significantly above market average often perform optimally at 50-60% occupancy.

How can I increase my Airbnb occupancy rate?

Increase occupancy by optimizing pricing (test 10-15% below local average), improving listing presentation (professional photos, detailed descriptions), enabling Instant Book, responding quickly to inquiries, maintaining exceptional cleanliness (4.8+ rating), and reducing minimum stay requirements from 3 nights to 2 nights. Properties implementing these changes typically see 10-15% occupancy improvement within 8-12 weeks.

Final Thoughts

Airbnb occupancy rate shows what percentage of available nights get booked. London’s 74% average in 2026 provides a useful benchmark, but your ideal occupancy depends on property location, type, and pricing strategy.

The critical insight is that occupancy rate alone doesn’t determine success. Revenue per available night combines both occupancy and nightly rate into one metric that better indicates performance. A luxury property at 55% occupancy and £250/night often outperforms a budget property at 80% occupancy and £95/night.

Focus on optimizing the occupancy-revenue balance rather than chasing maximum occupancy. Test pricing adjustments, monitor results, and aim for the sweet spot that generates highest annual revenue while maintaining acceptable booking frequency.

London’s regulatory environment in 2026 affects occupancy targets for different host types. Properties subject to 90-night limits must maximize revenue during available nights rather than pursuing year-round occupancy. Properties with proper planning permission benefit from reduced competition as regulations push non-compliant hosts out of the market.

Better Maid provides professional Airbnb and holiday rental cleaning across Greater London. Maintaining exceptional cleanliness drives positive reviews that directly impact occupancy rates. Services cover Canary Wharf, Tower Hamlets, Westminster, Kensington, Chelsea, Hackney, Camden, Southwark, Lambeth, and surrounding areas.

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