Which Airbnb Amenities Increase Occupancy Rates?
Airbnb amenities often make the biggest difference in the vacation rental landscape. Sure, location, pricing, and marketing each deserve careful consideration — but having a curated setup of kitchen essentials, a barbecue, a fireplace, top-speed WiFi, and comfortable lounge areas is really what makes listings pop. After all, is there anyone who seriously does not enjoy having a jacuzzi in their Airbnb? Let’s find out which Airbnb amenities increase occupancy rate most.
However, implementing amenities is not entirely straightforward. In fact, because every listing is incredibly unique with its own style and characteristics, amenities that prove to be essential in one location may be downright bizarre in another.
In order to determine exactly which Airbnb amenities help hosts and property managers most by improving guest experiences, AllTheRooms Analytics analyzed the effect of specific added items on occupancy rates across a number of markets. Here are our findings:
To understand which Airbnb amenities drive occupancy rates most, we dove into data for listings with at least 10 reviews in four distinct areas over the last 12 months (May 2018 to May 2019):
- 7 of Sydney’s most famous beach districts; Bondi, Coogee, Manly, Palm Beach, Avalon Beach, Cronulla Beach and Watson’s Bay.
- 13 of Europe’s most popular alpine ski resorts across France, Switzerland, Austria, and Italy: Courchevel, Zermatt, Val D’Isere, Tignes, Cortina D’Ampezzo, Chamonix, St Anton, Meribel, St Moritz, Courmayeur, Val Thorens, Verbier, Cervinia, and Alpe D’Huez.
- The beautiful and rural region of Provence, France.
- 8 of Germany’s most iconic, lesser-known cities: Frankfurt, Hamburg, Cologne, Dresden, Leipzig, Heidelberg, Dusseldorf and Stuttgart.
Identifying variables (amenities) that influence some performance measure (occupancy) is an entire area of data science in itself. In this analysis, we concentrated on four different algorithms grounded in mathematical and statistical rigor: the Mann-Whitney U test, conditional inference forests, LASSO regressions, and the Boruta Algorithm. These algorithms allowed us to isolate different amenities and predict their impact on occupancy rates with a level of 95% confidence.
In order to present the data, we created an easy-to-read amenity scoring system. If an amenity was deemed important by a particular algorithm in a particular area, it received one point. Below is the chart outlining our findings.
Get the Basics Right
For each area, there is a set of small amenities hosts can include to increase occupancy rates. Across all area types (beaches, cities, rural regions, and ski resorts), providing basic items such as extra bed linen, basic cooking essentials, and shampoo can boost occupancy up by 7.1%.
Additionally, hosts who don’t indicate the availability of WiFi, hot water or a refrigerator (items that may go overlooked by some) suffer a 7.7% penalty in occupancy rates. Our first clear takeaway from the data is that investments in small amenities go a long way. Moreover, hosts benefit by listing every amenity available, no matter how obvious or redundant it may seem.
Going Above but Only Slightly Beyond
Going beyond the basics and providing a more comfortable and functional experience for guests can be achieved at only a small outlay. Creature comforts such as a microwave (1.5% increase), a hairdryer (3.9% increase), an iron (3.7% increase), and a coffee maker (1.0% increase) all increase the occupancy rates across the four regions studied. Including all four of these amenities in a property can yield returns of a 5.3% increase in occupancy. These types of add-ons are especially useful for Marketing Your Listing Towards Business Travelers and appealing to those using Airbnb for Work.
There are other adjustments hosts can make if they have the right resources. Advertising listings as family-friendly can increase occupancies by 2.9%. If the listing has the availability for guests to park freely on-site, indicating so leads to a 3.5% in occupancy. Other listing features such as the availability of long-term stays and self-check-in also increase occupancy rates by 3.2% and 4.6% respectively.
Unsurprisingly, when parsing out the particular areas, certain Airbnb amenities are significantly more favored in one location than they are in another.
In the beach neighborhoods of Sydney, guests heavily favor beach essentials (3.1%), BBQ grills (3.7%), and the personal touch of being greeted by the host (5.2%). Curiously, they also value having a flat path to the front door (7.0%). While a flat path may not be possible for all vacation homes, offering the other three can boost occupancy rates and provide a more comfortable guest experience.
In the ski resorts of the Alps, guests show preferences for more snow-friendly facilities such as a ski-in-ski-out entrance (3.6%), hot tubs (5.3%) and on-site first aid kits (3.7%). As far as the listings in German cities, dishes and silverware (2.1%) and allowing pets to stay (9.7%) both result in higher occupancy rates. Listings noting the presence of a doorman in German cities see an increase of 6.2%
In the countryside of Provence, guests tend to look for long-term stays and family-friendly listings that offer amenities such as a pool (4.7%) and a stove (2.1%). Offering all four of these features — something holidaymakers traveling to the South of France would generally find appealing — can raise occupancy rates by a staggering 19.8%. Which Airbnb amenities increase occupancy rates most in Provence? A carefully hand-picked selection.
When asking ourselves which Airbnb amenities increase occupancy rates most, it becomes clear that the key is more nuanced than simply throwing in a few marketable items. Furthermore, the data shows that thinking beyond individual items and focusing on bundling amenities around a strategic brand or a theme provides sizeable returns.
For hosts and property managers looking to increase occupancy rates and revenues, discover how our in-depth market intelligence reports can help analyze demand and consumer tastes to better understand which amenities have the most impact in any given market.