10 Metrics to Track in STR Revenue Management Competitor Analysis

• Average Daily Rate (ADR): Understand pricing trends and align with market rates.
• Occupancy Rates: Measure how often properties are booked to gauge demand.
• Revenue Per Rental Unit (RevPAR): Combine ADR and occupancy to assess financial performance.
• Advance Booking Times: Identify optimal pricing windows based on lead times.
• Average Stay Duration: Tailor pricing and policies to guest stay patterns.
• Guest Review Scores: Improve visibility and bookings with higher ratings.
• Price Position Analysis: Compare your pricing with similar properties.
• Season-Based Demand: Adjust strategies for peak, shoulder, and off-season trends.
• Local Market Share: Track your share of bookings and revenue in the area.
• Property Features Comparison: Benchmark amenities to attract more guests.

Quick Comparison Table

These metrics are your roadmap to better performance and higher revenue. Dive into the article for detailed strategies on using each one effectively.

How to analyze an Airbnb using AirDNA

1. Daily Rate Average (ADR)

The Average Daily Rate (ADR) is a key metric for understanding your position in the short-term rental market. In Q3 2022, global STR ADRs hit $185, reflecting a 31% jump compared to Q3 2019 [10].

To calculate ADR, divide total revenue by the number of occupied nights. This figure provides insights into pricing strategies and market alignment. For instance, Airbnb noted a 5% increase in global ADR, reaching $153 in 2022. This boost was linked to dynamic pricing tools and better property standards [3].

When analyzing competitor ADRs, pay attention to:

Keep in mind these market-specific factors when using ADR for comparisons:

• Local demand trends (like seasonality or events)
• Similarity of properties
• Location-related advantages

Focusing solely on ADR can be misleading. For example, a property priced at $150 per night with 90% occupancy will generate more revenue than a $175 per night property at 70% occupancy. The real challenge is finding the right balance between ADR and occupancy to achieve the best revenue outcomes.

While ADR highlights pricing trends, it’s crucial to pair this metric with occupancy rates to get a clearer picture of revenue potential.

2. Property Occupancy Rates

The property occupancy rate shows how often competitor properties are booked, offering insights into market demand trends. It's calculated by dividing the number of booked nights by the total available nights during a specific period. For instance, if a property is booked for 20 nights in a 30-day month, its occupancy rate would be 66.7%. While Average Daily Rate (ADR) measures pricing strength, occupancy rates highlight actual booking activity. Together, these metrics are key for analyzing revenue potential.

In 2022, global short-term rental occupancy rates averaged 58%, though they varied significantly by location and season. Airbnb's data reflects this fluctuation, with occupancy rates rising from 52% in Q1 2022 to 67% in Q3 2022.

When looking at competitor occupancy rates, keep these seasonal factors in mind:

To stay informed about competitor occupancy, leverage tools like AirDNA, Transparent, or KeyData. When comparing data, focus on properties with similar:

• Location and ease of access
• Amenities and property features
• Guest capacity
• Property type and quality

Competitor Tracking Tips

• Watch for seasonal trends to uncover pricing strategies.
• Pay attention to occupancy spikes during local events.
• Compare weekday vs. weekend bookings and analyze hyperlocal competitors.

Here are 10 Tips to Boost Occupancy Rates for Rentals

3. Revenue Per Rental Unit

Revenue Per Rental Unit (RevPAR) is a key metric that blends ADR (Average Daily Rate) and occupancy rates to give a clear picture of financial performance. It’s especially useful for comparing your property to others in the short-term rental (STR) market [1].

To calculate RevPAR, simply multiply ADR by the occupancy rate. For example, a property with a $200 ADR and a 70% occupancy rate would have a $140 RevPAR. This straightforward calculation helps you see how your property performs against competitors [1][3].

When comparing RevPAR, make sure you’re looking at properties with similar:

• Location and ease of access
• Amenities provided
• Target guest demographics
• Room types and capacity

Several factors can influence your RevPAR, including:

• Renovations or upgrades to the property
• Standout amenities that attract guests
• How effective your booking policies are

Avoid These Common Mistakes:

• Comparing properties with vastly different features or markets
• Ignoring local market trends
• Relying solely on RevPAR without looking at other metrics

Pro Tip: Use minimum stay requirements during busy seasons to maximize your RevPAR.

4. Advance Booking Times

Understanding advance booking times helps identify the best pricing windows and demand trends. This metric highlights when demand turns into bookings, focusing on timing rather than rate calculations, and complements other revenue metrics like RevPAR.

Typical Booking Windows by Property Type:

Use these trends to fine-tune your pricing calendar. For example, if competitors plan for a 90-day booking window while yours is only 30 days, you might be missing out on early-bird bookings.

Factors That Influence Booking Windows:

• Seasonality: High-demand seasons or major events often lead to bookings made 6-12 months ahead [4].
• Property Type: Luxury or unique properties tend to have longer booking windows compared to standard accommodations [13].

Adapting Pricing to Booking Trends:

Properties with longer booking windows often achieve higher rates, while those with shorter windows may need to rely more on last-minute discounts [8].

Tips for Staying Competitive:

• Track availability across different seasons.
• Analyze early-bird versus last-minute pricing strategies.
• Keep an eye on how booking windows change during local events.

Also, remember that bookings made 6+ months in advance have a higher cancellation rate (15-20%) compared to last-minute stays (5-10%) [12]. Adjust occupancy forecasts accordingly.

5. Average Stay Duration

Understanding how long guests typically stay is just as important as knowing when they book. The global average stay duration is 4.3 nights [1], but this varies significantly depending on the type of property.

Here’s a breakdown of common patterns:

• Urban Properties: 2-3 nights during regular periods, increasing to 3-4 nights in peak season.
• Vacation Homes: 5-7 nights normally, stretching to 7-10 nights during peak times.
• Extended Stay Units: 14+ nights as a baseline, with 21+ nights during busy periods.
• Business Rentals: 3-5 nights on average, rising to 4-6 nights in peak season.

Competitors with average stays of 7+ nights often achieve 20-30% higher occupancy rates [4]. Why? Longer stays can reduce turnover costs, allow for volume discounts without sacrificing profitability, and open up opportunities for targeted marketing campaigns based on these patterns.

Seasonal fluctuations also play a big role, especially in vacation destinations. Pay attention to competitors’ minimum stay requirements during holidays, high-demand events, and quieter periods. This can provide valuable insights for adjusting your own strategy.

If your market shows strong demand for longer stays, consider offering weekly or monthly rate options. Benchmark against properties with similar characteristics to ensure your pricing and policies align with market trends [8].

Lastly, keep in mind that stay duration ties directly to pricing strategies. Longer stays often warrant adjusted rate structures, which can improve both occupancy and revenue potential.

6. Guest Review Scores

Guest satisfaction plays a big role in visibility and revenue. Properties with guest review scores less than 4.9 stars tend to earn 30-40% less than their competitors and 4.9+ stars earn 20-30% more. The best-performing listings often have scores of 4.95+ on Airbnb/VRBO and 9.5+ on Booking.com. [3]

When evaluating competitor review scores, focus on these categories:

Pay close attention to written feedback about amenities and service quality. These comments often highlight areas where you can stand out. The cleanliness review category is the most crucial and a dirty property is the first thing that will lead to less than a 5-star overall rating!

Take note of how competitors maintain high standards by:

• Scheduling regular maintenance to avoid issues
• Responding quickly to guest concerns
• Communicating professionally throughout the stay
• Providing accurate and detailed listing descriptions

For fair comparisons, weigh scores based on the number of reviews and adjust for differences in platform rating systems.

Achieving and keeping Superhost status can boost your search rankings and improve your booking rates.

7. Price Position Analysis

While ADR (Average Daily Rate) and RevPAR (Revenue Per Available Room) measure overall performance, price position analysis shows how your property stacks up against the competition. For example, in Q3 2023, vacation rental ADRs rose by 4.5% year-over-year, with the US average hitting $256.03 [4].

To get the most out of price position analysis, focus on comparing your property to others that share similar traits. Key factors to consider include:

When analyzing prices, include all components - base rates, discounts, and seasonal adjustments.

Three Methods for Analyzing Prices

1. Direct Platform AnalysisBrowse competitor listings on major booking platforms to monitor their rates, discounts, and offers.
2. Dynamic Pricing ToolsUse tools that provide historical data and market trends to refine your pricing strategy [3][9].
3. Seasonal PatternsStudy how competitors adjust pricing during busy periods or local events. This can help you identify when to charge premium rates.

Tips for Staying Competitive and Profitable

• Know Your Minimum Rate: Calculate the lowest rate you can charge while covering operational costs.
• Respond to Demand: Adjust rates in real-time based on booking activity and market trends.
• Benchmark Seasonally: Compare your pricing to competitors during peak seasons and special events.

Combining these insights with earlier occupancy and booking window data can help you fine-tune your pricing strategy. If you need expert help, services like Maverick STR (https://maverickstr.co) offer tools and analysis to maximize your revenue.

8. Season-Based Demand

Keep an eye on how competitors tweak their strategies during different seasons. For instance, summer months often see a 41% higher occupancy rate compared to winter months [1]. This insight pairs well with price positioning (see Section 7) to understand how competitors handle seasonal trends.

Seasonal Demand Patterns

Key Competitor Patterns to Watch

• Occupancy Rate ChangesObserve how competitors adjust their pricing to handle shifts in seasonal demand.
• Seasonal Rate AdjustmentsHoliday weekends often see rates spike by up to 25% compared to regular weekends [8]. Study how competitors apply these premiums and tweak their rates throughout the year.
• Event-Based PricingDuring major events, some destinations experience a 300% surge in demand [3]. Analyze how competitors take advantage of these opportunities with strategic pricing.

Urban vs. Resort/Vacation Markets

Urban Markets:

• Demand tends to stay steady year-round.
• Business travel plays a key role.
• Rates often shift around events or conferences.

Resort/Vacation Markets:

• Strong high and low demand cycles.
• Pricing often depends on weather conditions.
• Extended off-season strategies are common.

9. Local Market Share

Knowing your property's market share helps you understand where you stand among competitors in the local short-term rental (STR) market. Essentially, market share shows how much of the local bookings or revenue your property captures compared to others in the area [1].

How to Calculate Market Share

You can measure market share by comparing your property's bookings or revenue to the total for similar properties nearby.

For example, if your property earns $10,000 in a month while similar properties in the area collectively bring in $100,000, your revenue-based market share is 10% [1][2]. Pair this data with metrics like ADR (Section 1) and RevPAR (Section 3) to get a clearer picture of your property's competitive position.

Tracking Performance

A good market share often reflects your share of the total available units in the area.

What to Watch:

• Monthly trends in booking volume
• Changes in your share of revenue

Factors That Influence Market Share

Several outside factors can impact your market share:

• Changes in local laws or regulations
• New competitors entering the market
• Seasonal shifts in demand
• Area-wide pricing trends [5][6]

Regularly review your market share - ideally, every month - to spot patterns and make informed adjustments [11]. Combining this with metrics like ADR and RevPAR gives you a fuller view of your property's standing in the local market [1].

10. Property Features Comparison

Sections 7-9 covered financial metrics, but understanding property features provides more actionable insights into pricing strategies and guest preferences. Specific amenities often explain differences in price positioning and occupancy rates, as discussed earlier in Sections 2 and 7.

Key Amenity Categories

Certain amenities consistently deliver strong returns:

• Hot Tubs: Boost pricing potential significantly.
• Pet-Friendly policies: Attract a larger guest base.
• Smart Home Technology: Streamlines operations and enhances convenience.
• Game Rooms, Movie Theaters, and Saunas: These drive higher revenue and occupancy in most markets.
• Interior Design: Design is pivotal to stand out in saturated markets. Professional design leads to higher ROI and higher nightly rates. Check out Pink Wall Designs who are the best in the industry!

Market-Specific Priorities

The value of features depends heavily on the type of property and its location:

Feature Evaluation Framework

Here's how to assess and compare features based on market standards:

Smart Upgrades for Quick Wins

Focus on budget-friendly enhancements that yield fast results. For instance, installing high-speed Wi-Fi or adding smart home devices can improve guest satisfaction without requiring major renovations. When paired with the pricing, occupancy, and market share data from earlier sections, these feature insights provide a complete competitive analysis.

Using Metrics for Business Decisions

By analyzing metrics from Sections 1-10, managers can craft strategies that turn data into revenue. Properties that leverage market analytics experience a 40% boost in revenue [3].

Revenue Optimization Strategy

Combine ADR (from Section 1) and occupancy rates (from Section 2) to refine pricing strategies. Here's a helpful framework for decision-making:

Performance-Based Improvements

Data analytics can lead to a 78% increase in occupancy rates for property managers who use it compared to those who don’t [3]. This success often comes from:

• Upgraded Amenities: Focus on high-impact features identified through competitor analysis.
• Targeted Marketing: Use booking trends to time promotions during peak interest periods.
• Seasonal Adjustments: Match pricing to demand patterns based on seasonal insights (see Section 8).

Data-Driven Action Plan

• Use market share insights (Section 9) to refine pricing and amenities.
• Address feedback from reviews (Section 6) to resolve guest concerns.
• Adjust occupancy strategies and pricing based on local demand trends.

Technology Integration

Adopt dynamic pricing tools that monitor competitor rates in real time. Regularly reviewing and refining strategies - ideally on a monthly basis - helps ensure properties stay competitive in the market.

Conclusion

Managing short-term rentals successfully depends on making informed decisions based on solid data, especially through competitor analysis. The ten metrics discussed in this guide give property owners the tools they need to refine their listings and improve revenue.

To make the most of these competitor metrics, property owners should:

• Use analytics tools to track performance consistently
• Review performance monthly (as highlighted in Section 9)
• Adjust strategies to match seasonal demand
• Combine data insights with guest feedback (see Section 6)

These metrics are not static - they’re tools that evolve with your market. In fact, 82% of vacation rental owners who track competitor metrics regularly have reported better occupancy rates[3]. This underscores the importance of data in today’s short-term rental landscape, where smart decisions fuel growth.

Turn your data into practical strategies that help your business thrive.

FAQs

What is the key metric for Airbnb?

As explained in Section 3, Revenue Per Available Room (RevPAR) is the primary metric for Airbnb and other short-term rental platforms [3][14]. This metric combines pricing and occupancy data, offering a clear picture for competitive analysis.

To compare your RevPAR with competitors, focus on properties that share similar features and are in comparable locations, as discussed in Sections 7 and 10. RevPAR helps identify pricing or occupancy imbalances, which are crucial for fine-tuning strategies based on competitor performance.

For a more complete approach, combine RevPAR insights with booking lead times (Section 4) and review scores (Section 6). This will help you make better-informed decisions.

Related Blog Posts

• Ultimate STR Revenue Management Guide to Competitor Rate Analysis
• Length of Stay Pricing Strategies: Best Practices