Airbnb Demand Drivers

As a short-term rental host, it's important to know what is driving demand in your area. There are a number of factors that can impact demand for your listing, and it's crucial to understand these drivers so you can optimize your rental and attract more guests. In this blog post, we will discuss vital demand drivers gleaned from Airbnb market research that every short-term rental host should know.

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Day of the Week

Different days of the week generate different demand levels for short-term rentals. For example, people are more likely to travel on weekends than during the week

As a result, prices for accommodations are generally higher on Fridays and Saturdays than on Sundays through Thursdays. However, demand can also vary depending on local events and holidays.

As an example, prices in New Orleans are often higher during Mardi Gras than at other times of the year. By understanding the Airbnb market research data that drives demand in your area, you can price your rental more effectively to maximize occupancy and revenue.


According to Airbnb market research, seasonality is a significant driver of demand for short-term rentals. For example, in a ski town, demand will spike when the snow is falling, and people are looking to hit the slopes. At the same time, a beach house on Lake Michigan will do best during the summer months.

By understanding the seasonal trends in your area, you can better price your rental and adjust your availability to meet customer demand. Paying attention to seasonality will also help you correctly price your home during the off-season.

For example, you will likely want to lower your Colorado ski lodge rates during the middle of summer. This will ensure that you still capture some guests rather than remaining empty for an entire summer

Airbnb Demand Drivers

The Area's Location & Occupancy Rate

The occupancy rate of an area can have a significant impact on the demand for short-term rentals. A high occupancy rate means that there are a lot of people looking for places to stay, and this can drive up prices.

On the other hand, a low occupancy rate means that there are fewer people looking for places to stay, and this can drive down costs. Before purchasing a home to use as an Airbnb or discussing rental arbitrage with your landlord, you'll need to conduct a market analysis to calculate your potential income.

According to, the top cities with demand for short-term rentals are shaping up to be:

  • Charleston, SC
  • Maui, HI
  • Nashville, TN
  • Key West, FL

However, it is important to consider that each of these cities has its own unique sets of rules and restrictions, and it may not be the easiest to gain the proper certificate of occupancy among other documents.

Number of Positive Reviews

The number of positive reviews your listing has is likely to impact demand for your short-term rental significantly. The more positive reviews a rental property has, the more likely it is to be in high demand.

This is especially true in popular tourist areas, where there is often a limited supply of rental properties relative to the number of people looking to rent. In these areas, a rental property with many positive reviews is likely to be booked solid for most of the year.

In addition, the number of positive reviews can also impact pricing for short-term rentals. Generally speaking, the more popular a rental is, the higher its price. This is because demand is high, and more people are willing to pay a premium for a popular rental than there are for a less popular one.

 Consequently, a rental property with many positive reviews is likely to be priced higher than one with fewer reviews. If you find yourself with a negative review, there are actionable steps you can take to minimize its impact on your business.


Offering different amenities will definitely affect the demand for a short-term rental. If a rental has something that guests are looking for, then it will be in high demand.

For example, if a rental is located near popular tourist attractions or if it has a pool, then it will be in high demand. On the other hand, if a rental is located in a less desirable area or does not have any special amenities, then it will be less popular. In general, the more amenities a rental has, the higher the demand will be and the higher the nightly rate a host can charge.

Airbnb Demand Drivers

Property Type

Different property types will have different effects on the demand for your rental and the type of tenant you attract. For example, a luxury apartment in a city center will attract a different kind of guest than a cottage in the country.

Just as a home with whole office space is more likely to attract long-term corporate travelers than a studio apartment. Consider who your ideal market audience is when creating your short-term rental to maximize your potential income.

Local Holidays & Events

Paying attention to local holidays and events is a great way to maximize potential income for short-term rentals. By simply searching online for local events in your area, you can easily find out what is happening in your neighborhood that might generate demand for your rental property.

Additionally, these events will often have websites or social media pages that you can follow to stay up-to-date on the latest information. By staying informed about local events, you can be sure to price your rental property appropriately and generate some extra income during busy times. The flexibility of pricing is one of the many perks of choosing to be a short-term rental host over a full-time landlord

Final Thoughts on Airbnb Market Research

Overall, short-term rental hosts need to be aware of the various demand drivers to maximize their potential income. By considering things like property type, amenities, and local holidays and events, hosts can ensure that their rental is in high demand and priced appropriately. With a bit of research and planning, any host can succeed in the short-term rental market.

Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today! 

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