Holiday Let Occupancy: How to Estimate and Increase Occupancy

How to estimate and increase your holiday let occupancy

A well-booked holiday let can generate attractive rental income and help you make better use of your property throughout the year. But what is a realistic occupancy rate, how can you estimate future bookings and what can you do to increase occupancy?

The occupancy of a holiday let depends on many factors, including location, seasonality, pricing, property type, availability and visibility. Strong demand for holiday accommodation does not automatically mean that every individual property will achieve the same number of bookings.

Understanding how to estimate occupancy rates for a holiday let can help you set realistic expectations and identify opportunities to improve performance.

This guide explains how holiday let occupancy is calculated, what influences the average occupancy of a holiday let and practical strategies that can help you increase occupancy throughout the year.

What is holiday let occupancy?

Holiday let occupancy measures how much of a property's available rental time is booked by guests.

The standard occupancy rate is calculated by dividing the number of booked nights by the number of nights the property was available for rent and multiplying the result by 100.

For example:

A holiday let is available for 200 nights.
Guests book 120 nights.
The occupancy rate is 60%.

This calculation provides a useful starting point for understanding how frequently your property is booked.

However, occupancy should not be considered in isolation. A high occupancy rate does not necessarily mean that a property generates the highest possible rental income. Nightly rates, length of stay, operating costs and seasonality also play an important role.

The aim is therefore to find the right balance between occupancy and rental income.

What is the average occupancy of a holiday let?

There is no single figure that represents the average occupancy of a holiday let across every destination and property type.

Occupancy can vary considerably depending on:

location
seasonality
property type and size
target guest groups
local tourism demand
pricing
competition
the number of nights the property is available for rent

For example, a holiday let in a popular coastal destination may achieve most of its bookings during summer, while a property in a ski resort may experience its strongest demand during winter.

A property that is only available for rent during selected periods should also be assessed differently from one that is available throughout the year.

For this reason, the most useful benchmark is often not a universal average. Instead, compare your holiday let with similar properties in your destination and consider occupancy alongside revenue and your individual rental goals.

Holiday let: how to estimate occupancy rates

If you are asking “holiday let how to estimate occupancy rates?”, start by looking at your property's specific market rather than relying only on broad industry averages.

A realistic occupancy estimate should consider:

1. Location and destination demand

Look at how attractive your destination is to holidaymakers and whether demand is concentrated in particular seasons.

Coastal areas, mountain regions, ski resorts and destinations with a wide range of leisure activities may all experience different booking patterns.

2. Seasonality

Most holiday lets do not receive the same level of demand throughout the year.

Consider:

peak season
shoulder season
low season
school holidays
local events
weather-dependent travel patterns

Estimating occupancy month by month can provide a more realistic picture than using a single annual percentage.

3. Comparable holiday lets

Look at properties that are genuinely comparable to yours in terms of:

location
size
number of guests
facilities
quality
target group

A large family holiday home with a swimming pool should not necessarily be compared with a small city apartment.

4. Your available rental days

Occupancy is based on the time your property is actually available for guests.

When estimating your occupancy rate, clearly define:

which periods you want to rent out the property
when you plan to use it yourself
whether there are periods when the property cannot be rented

This helps you create a realistic estimate of both occupancy and potential rental income.

5. What influences the occupancy of a holiday let?

Several factors determine how frequently a holiday let is booked. Some, such as location, cannot easily be changed. Others can be actively influenced by homeowners.

6. Location and seasonality

Location is one of the most important factors affecting occupancy.

Holiday lets in popular coastal areas, mountain regions, ski destinations or places with a broad range of leisure activities can benefit from strong seasonal demand.
However, a highly seasonal destination does not necessarily mean that your property can only attract guests during a few weeks of the year.
Consider what your region offers outside the main season. Hiking, cycling, wellness, local events and quieter holidays can attract different types of guests at different times of year.

7. Pricing

The right price can have a significant impact on both occupancy and rental income.

If your holiday let is priced considerably above comparable properties, potential guests may choose another accommodation. On the other hand, prices that are consistently too low may increase bookings without making the most of your property's income potential.

Demand can change according to factors such as:

seasonality
school holidays
local events
booking lead times
current availability
competitor prices
travel demand

Flexible pricing can help your holiday let remain competitive as these conditions change.

8. Visibility

Even a perfectly equipped holiday let cannot generate bookings if potential guests do not find it.

Making your property visible across relevant booking channels can help you reach travellers from different countries and target groups.
The way your property is presented is equally important. Professional photographs, an informative description and complete information about facilities help potential guests quickly understand what your holiday let offers.

9. Property features and amenities

Travellers often use filters to narrow down their accommodation search. Offering relevant amenities can therefore help your holiday let appear in more relevant searches and attract specific guest groups.

Depending on your property and destination, useful features may include:

reliable Wi-Fi
a swimming pool
a fenced garden
pet-friendly facilities
EV charging
air conditioning
private parking
outdoor space
family-friendly equipment

Focus on the guests most likely to choose your destination and the features that matter most to them.

6 ways to increase occupancy in your holiday let

While market demand and location influence bookings, there are several practical measures you can take to increase occupancy and improve your property's rental potential.

1. Adapt your prices to demand

Rather than keeping the same rates throughout a season, flexible pricing allows prices to respond to changes in demand.

Dynamic pricing can take factors such as:

seasonality
current demand
competitor prices
local events
availability

into account.

Rates can increase during periods of strong demand and become more competitive when demand is lower.

According to Interhome's own 2025 figures, properties using its integrated Dynamic Pricing model achieved on average:

25% more reservations
18% more booked days
18% higher turnover

compared with properties using fixed pricing.

Results depend on the individual property and market, but flexible pricing can help you find a better balance between occupancy and rental income.

2. Increase the visibility of your property

The more relevant travellers your holiday let reaches, the greater the opportunity to generate bookings.

Distribution across different booking channels can give your property access to both domestic and international guests.
At the same time, accurate descriptions, professional photographs and clearly presented amenities can help your property stand out when travellers compare accommodation options.

3. Attract guests outside the main season

Peak periods are often comparatively easy to fill. One of the greatest opportunities to increase occupancy may lie in attracting guests during quieter months.

Depending on your property and destination, consider whether you could appeal to:

couples looking for short breaks
families travelling outside peak periods
guests travelling with dogs
workation guests
hikers and cyclists
guests attending local events
travellers looking for longer stays

Small adjustments to your property's equipment, amenities or presentation can sometimes make it attractive to additional target groups.

4. Offer flexibility where possible

Strict arrival days or long minimum stays can reduce the number of travellers able to book your property.

Where practical, consider allowing greater flexibility with arrival and departure dates or shorter stays during quieter periods.
If you also use the holiday home yourself, plan personal stays carefully. Blocking particularly popular travel periods can have a significant effect on annual occupancy and rental income.

5. Adapt your holiday let to guest needs

Understanding what your target guests are looking for can help you make improvements that support occupancy.

Families may value practical family-friendly equipment and a safe outdoor space. Guests travelling with dogs may actively search for pet-friendly properties with a fenced garden.
Workation guests, meanwhile, are likely to prioritise reliable Wi-Fi and a comfortable workspace.
Not every improvement requires a major investment. Focus on features that are genuinely relevant to the guests you want to attract.

6. Create a positive guest experience

Good occupancy is not only about attracting first-time guests. Positive experiences can lead to good reviews, recommendations and repeat bookings.

Make sure your property description accurately reflects the accommodation, keep facilities well maintained and provide guests with the information they need for their stay.
Reliable support before and during the holiday can also contribute to a smooth guest experience.

How can you increase occupancy during the low season?

For many holiday homeowners, increasing occupancy does not mean generating more bookings during already busy peak periods.

The greater opportunity often lies in extending the rental season.
Start by considering what makes your destination attractive outside traditional holiday periods.
A mountain property, for example, may attract winter sports enthusiasts during the ski season but also hikers, cyclists or families during summer and autumn.
Coastal accommodation may appeal to couples, walkers, dog owners or guests looking for quieter breaks outside the summer months.
Flexible prices and shorter stay durations can also make your property more attractive when overall demand is lower.
The goal is not necessarily year-round occupancy. Instead, identify additional periods when there is realistic demand for your property and position your holiday let accordingly.

How can Interhome help increase your holiday let occupancy?

Successfully renting out a holiday home involves much more than simply publishing a listing.

Interhome combines international distribution, professional pricing and local expertise to help homeowners make the most of their property's rental potential.

Homeowners can benefit from:

Global reach and Dynamic Pricing: Market-aligned pricing combined with distribution across Interhome's network and leading international booking platforms.
Professional marketing: Presenting your property to relevant target groups across multiple sales channels.
Local expertise and personal service: Local teams with knowledge of destinations and regional market conditions.
Flexible options: Different levels of support, from listing services to full property management.
Guest support: Professional booking, payment and guest communication processes.

Interhome currently rents around 70,000 properties on behalf of 30,000 owners, combining international distribution with local support across European holiday destinations.

Make the most of your holiday let's rental potential

Strong demand for holiday accommodation can provide a good basis for homeowners, but achieving good occupancy depends on how well an individual property responds to its market.

Competitive pricing, broad visibility, relevant amenities, flexible availability and a clear understanding of your target guests can all help increase booking opportunities.
Rather than focusing solely on achieving the highest possible occupancy rate, consider your property's individual rental potential.
Attracting the right guests at the right price and extending bookings into quieter periods can help you achieve a healthier balance between holiday let occupancy and rental income.

FAQs about holiday let occupancy

What is a good occupancy rate for a holiday let?

There is no universal benchmark for a good occupancy rate for a holiday let. It depends on factors such as location, seasonality, property type, pricing and the number of days your property is available for rent.

Occupancy should therefore be considered alongside rental income and your individual goals.

How do I calculate the occupancy rate of my holiday let?

Divide the number of booked nights by the number of nights your property was available for rent and multiply the result by 100.

For example, 120 booked nights out of 200 available nights represents an occupancy rate of 60%.

What is the average occupancy of a holiday let?

The average occupancy of a holiday let varies considerably depending on the destination, seasonality, property type and local demand.

Rather than relying on one universal figure, compare your property's performance with similar holiday lets in your destination and assess occupancy alongside rental income and availability.

Holiday let: how do I estimate occupancy rates?

To estimate occupancy rates for a holiday let, analyse your destination, seasonality, comparable properties, target guests and the number of nights your property will actually be available for rent.

Estimating bookings by month or season can provide a more realistic forecast than relying on a single annual average.

How can I increase occupancy in my holiday let?

To increase occupancy, focus on competitive pricing, broad online visibility, an attractive property presentation, relevant amenities and flexible availability.

Targeting additional guest groups and promoting your property outside the main season can also create more booking opportunities.

How can I get more bookings in the low season?

Consider which guests could be attracted to your property outside peak periods. Depending on the destination, these could include couples, dog owners, workation guests, hikers or cyclists.

Flexible pricing and shorter minimum stays can also make your holiday let more attractive during quieter periods.

Does Dynamic Pricing help increase occupancy?

Dynamic Pricing adjusts rates according to factors such as demand, seasonality and market conditions. This can help a holiday let remain competitively priced throughout the year.

According to Interhome's 2025 figures, properties using Dynamic Pricing recorded on average 18% more booked days than properties using fixed prices.

Is high occupancy always better?

Not necessarily. A very high occupancy rate achieved through consistently low prices may generate less income than fewer bookings at stronger rates.

For this reason, homeowners should consider occupancy and rental income together when evaluating the performance of a holiday let.