STR Performance Metrics: The Numbers Every Host Should Track

Running a successful short-term rental is not about gut feelings or hoping for the best. The most profitable STR operators treat their properties like businesses, and businesses run on data. Understanding and tracking the right metrics allows you to identify problems before they become crises, spot opportunities your competitors miss, and make pricing and operational decisions with confidence.

This guide breaks down the essential metrics every STR host should track, explains how to calculate them, and most importantly, shows you how to use these numbers to improve your bottom line.

The Core Revenue Metrics

These three metrics form the foundation of STR performance analysis. Understanding their relationship is crucial for optimizing your revenue strategy.

Occupancy Rate

Occupancy rate tells you how often your property is generating revenue. A property with 22 booked nights out of 30 available has a 73% occupancy rate.

What is a good occupancy rate? This varies dramatically by market and property type:

• Beach destinations: Often 60-80% annually, with huge seasonal swings
• Urban markets: Typically 65-85%, more consistent year-round
• Mountain/ski areas: Can range from 40-90% depending on season
• Business travel markets: Often 70-85% with weekday dominance

Important considerations:

• Higher occupancy is not always better if you are sacrificing rate
• Calculate available nights accurately (subtract personal use, maintenance blocks)
• Track monthly and seasonal patterns, not just annual averages
• Compare to your specific market, not national averages

Average Daily Rate (ADR)

ADR measures your pricing power. If you earned $4,500 in accommodation revenue over 22 booked nights, your ADR is $204.55.

What affects ADR:

• Property quality and amenities: Hot tubs, pools, and premium finishes command higher rates
• Location within market: Proximity to attractions, views, walkability
• Guest capacity: Larger properties often have higher ADR
• Seasonality: Peak periods can be 2-3x shoulder season rates
• Day of week: Weekend rates typically exceed weekday rates
• Length of stay: Longer stays often come with discounts

ADR pitfalls to avoid:

• Do not include cleaning fees in ADR calculations (track separately)
• Exclude comped or discounted stays from your calculations
• Track gross ADR (before platform fees) and net ADR (after fees) separately

Revenue Per Available Room (RevPAR)

RevPAR is the single most important metric for STR performance because it captures both pricing and occupancy in one number. Using our earlier example: $204.55 ADR x 73% occupancy = $149.32 RevPAR.

Why RevPAR matters:

• Balances the tradeoff between rate and occupancy
• Allows apples-to-apples comparison across different strategies
• Shows true revenue efficiency of your property
• Helps evaluate whether a price change is working

Booking Behavior Metrics

Understanding how guests book helps you optimize pricing and marketing strategies.

Booking Lead Time

The average number of days between when a booking is made and the check-in date.

Why lead time matters:

• Pricing strategy: Longer lead times allow more aggressive initial pricing
• Cash flow planning: Understand when revenue becomes predictable
• Cancellation risk: Longer lead times often correlate with higher cancellation rates
• Marketing timing: Know when potential guests start searching

Typical lead times by market type:

• Vacation destinations: 30-90 days average, with peaks 2-3 months out
• Urban/business travel: 7-21 days average
• Event-driven markets: Highly variable, can be 6+ months for major events
• Last-minute markets: 1-7 days common in some areas

Length of Stay (LOS)

The average number of nights per booking.

Why length of stay matters:

• Turnover costs: Shorter stays mean more cleanings, more wear, more work
• Revenue optimization: Longer stays often mean slightly lower ADR but better net income
• Guest profile: LOS indicates your guest mix (business vs. vacation)
• Operational planning: Affects staffing and supply needs

Booking Channel Mix

Where your bookings come from matters for profitability and sustainability.

• Airbnb: Typically 3% host fee, strong brand trust
• VRBO: Often 3% or subscription model, different guest demographics
• Booking.com: 15-18% commission, international travelers
• Direct bookings: No platform fees, but requires marketing investment

Track your channel mix to:

• Understand true net revenue by channel
• Identify opportunities to shift to lower-cost channels
• Evaluate ROI of direct booking efforts
• Reduce dependency on any single platform

Guest Satisfaction Metrics

Overall Rating and Rating Breakdown

Your star rating directly impacts search ranking, guest trust, and pricing power.

What ratings mean for your business:

• 4.9-5.0: Premium positioning, can command top rates
• 4.7-4.8: Strong performer, competitive in most markets
• 4.5-4.6: Average, may struggle against better-rated competition
• Below 4.5: Significant visibility and booking challenges

Track individual rating categories:

• Cleanliness: Most important category for guest satisfaction
• Accuracy: Does reality match expectations set in listing
• Communication: Response time and helpfulness
• Check-in: Smoothness of arrival process
• Location: Accuracy of location description and neighborhood
• Value: Perception of price vs. experience

Review Response Rate

The percentage of guests who leave reviews.

• Industry average: 50-70% of guests leave reviews
• Higher rates come from review requests and exceptional experiences
• Low review rates may indicate disengaged or dissatisfied guests

Repeat Guest Rate

The percentage of bookings from returning guests.

• Indicates strong guest satisfaction and loyalty
• Repeat guests are less costly to acquire
• Often book direct, reducing platform fees
• Provide predictable booking patterns

Financial Performance Metrics

Gross Revenue vs. Net Revenue

Always track both to understand your true earnings:

• Gross Revenue: Total amount collected from guests (including fees and taxes)
• Net Revenue: What you actually receive after platform fees, payment processing, and collected taxes

The gap between gross and net can be 15-25% or more depending on your platform mix and tax obligations.

Expense Ratios

Track expenses as percentages of revenue to spot trends and compare to benchmarks.

Net Operating Income (NOI)

NOI is your true operational profit and the number that matters for evaluating investment performance.

Cash-on-Cash Return

This measures the actual return on the money you have put into the investment, including down payment, closing costs, and initial furnishing. Use our ROI Calculator to estimate your potential returns, and dive deeper with our STR ROI Analysis Guide.

Comparing to Market Data

Where to Find Benchmark Data

Your numbers only mean something in context. Use these sources to understand market performance:

• AirDNA: Comprehensive STR market data and analytics
• Mashvisor: Investment-focused market analysis
• Your PMS: Many property management systems provide market comparisons
• Dynamic pricing tools: Pricelabs, Beyond, Wheelhouse show market trends
• Local host groups: Other hosts often share performance benchmarks
• Platform insights: Airbnb and VRBO provide some market data to hosts

Apples-to-Apples Comparisons

When benchmarking, ensure you are comparing similar properties:

• Same bedroom count: A 1BR and 4BR in the same area have vastly different metrics
• Similar amenities: Pool homes vs. non-pool are different markets
• Same location type: Beachfront vs. 10 minutes from beach
• Same time period: Year-over-year comparisons account for seasonality
• Same quality tier: Luxury vs. budget properties

Market Penetration Index

Compare your performance to market average to see if you are capturing your fair share:

• Occupancy Index: Your occupancy / Market average occupancy
• ADR Index: Your ADR / Market average ADR
• RevPAR Index: Your RevPAR / Market average RevPAR

An index of 100 means you are performing at market average. Above 100 means you are outperforming; below 100 means there is room for improvement.

Using Data to Improve Performance

Identifying Revenue Leaks

Regular metric analysis reveals problems you might otherwise miss:

• Low weekday occupancy: Consider business traveler amenities or weekday discounts
• High occupancy but low RevPAR: You are likely underpriced
• Declining ADR with stable occupancy: Market may be oversupplied
• Short booking lead times: May indicate pricing too high initially
• High cancellation rates: Review your cancellation policy and guest screening

Pricing Strategy Optimization

Use your data to refine pricing:

• If occupancy is consistently above 85%: Test raising rates
• If occupancy is below 60%: Review pricing vs. comparable listings
• Track conversion rate: Views to bookings ratio indicates pricing fit
• Monitor booking pace: Filling too fast means leaving money on table
• Adjust by day of week: Price weekends and weekdays differently

Operational Improvements

Data drives better operational decisions:

• Cleaning cost per revenue dollar: Is your cleaning efficient?
• Supply cost trends: Are consumable expenses creeping up?
• Maintenance frequency: What is breaking and how often?
• Guest complaint patterns: What issues repeat?

Building Your Tracking System

Essential Tools

• Spreadsheet: At minimum, track monthly metrics in a simple spreadsheet
• Property Management System: Most PMS platforms provide automated reporting
• Accounting software: QuickBooks or similar for expense tracking
• Market data subscription: AirDNA or similar for benchmarking

What to Track Monthly

Annual Analysis

Once per year, conduct a deeper analysis:

• Year-over-year performance comparison
• Seasonal pattern analysis
• Expense ratio trends
• ROI calculation and investment performance
• Market position vs. competition
• Capital expenditure planning based on maintenance data

Common Metric Mistakes to Avoid

• Vanity metrics: Do not obsess over total revenue without tracking expenses
• Ignoring seasonality: Monthly comparisons should be year-over-year, not sequential
• Over-optimizing one metric: Maximum occupancy at low rates hurts overall performance
• Not tracking net revenue: Platform fees and expenses matter
• Comparing to wrong benchmarks: Your 2BR cabin should not be measured against 6BR lakefront homes
• Analysis paralysis: Track what matters, act on insights, do not drown in data