The Pareto principle: how to apply it to rentals

The Pareto principle — familiar with it? Applicable across many fields, it is particularly relevant to rental and can be very helpful. Here’s why.

What is the Pareto principle?

The Pareto principle, associated with the name Vilfredo Pareto, is often summarised as the 80-20 split. That does not mean he stated the principle in exactly that form.

In rental, first check whether a small share of your platforms brings a large share of your bookings. The 20% / 80% split is a hypothesis, not a guaranteed outcome. Your figures will tell you where to focus your efforts.

Fictitious example in a holiday rental: you use 5 platforms and receive 20 bookings, 16 of which come from a single platform. That platform represents 20 % of the sites used (1 ÷ 5 × 100) and provides 80 % of the bookings (16 ÷ 20 × 100). That is what the 80/20 principle means in this example; your results may differ.

How do you apply it to rental?

1/ Compare your bookings platform by platform, over several months if necessary. To measure each site's share, divide the number of bookings it brings by the total bookings from those sites, then multiply by 100. Fictitious example: you use 5 platforms and obtain 20 bookings. If one brings 16, it represents 80 % of your bookings (16 ÷ 20 × 100), while it represents only 20 % of your platforms (1 ÷ 5 × 100). You will see which sites generate the most. The 80/20 split is a hypothesis to verify with your own data, not a given result.

To compare platform profitability, add up the income each brings over the same period, then subtract its commissions and the fees specific to that site. Note the time spent managing listings and bookings on each platform, then divide the net amount by the hours spent on each. You will see whether the site that brings the most bookings also rewards your time best.

Which platforms should you keep? Prioritise those that bring bookings and pay your time best. A site that generates few bookings may still deserve its place if it leaves you more net income without requiring much management. Do not close other listings based on a single period: compare several months before reducing the effort you put into them.

2/ Focus on the sites that bring you the most bookings and write a complete, appealing listing. Here too, take the time to describe your property well and highlight its distinctive features, what makes it unique, and things to do nearby...

3/ Update your listing regularly. Change the photos according to the seasons and the amenities you add; mention health measures only if they remain relevant to your listing.

Before prioritising a booking platform, compare what it brings in with the time it takes to manage.

Measure	How to calculate it	What it tells you
Share of bookings	Bookings from the platform ÷ total × 100	Where to focus your listing updates
Net income	Income from the platform − commissions and platform-specific fees	Which platform leaves you with more income
Income per hour	Net income ÷ hours spent managing the platform	Which platform best rewards your time
Period assessed	Compare several months	Avoid closing a listing based on one period

Frequently asked questions

How long does it take to spot the sites that bring the most bookings? Allow several months of bookings per platform. A single good season is not enough to determine which sites bring you the most bookings.

Should I abandon other platforms once I have identified the priority sites? Do not close other listings for that reason alone. First concentrate your writing and updating efforts on the platforms that bring you the most bookings.

How often should you update your listing on priority sites? Check it regularly. Change the photos when the season changes or you add a new amenity, and update any applicable health measures. Your listing must describe the accommodation as it is today, not as it was when first published.

Why take inspiration from Airbnb Superhosts' listings? See how they describe the property and present its particularities. You may find ideas to showcase the atypical and unique aspects of your property, without copying the listing. Superhost status alone does not prove a listing generates more bookings: check what works with your own figures.

Does the Pareto principle apply only to bookings? No. It is a general principle. To decide where to focus your listing writing and updates, however, compare the bookings brought by each site. Your figures will tell you whether a small share of platforms generates a large share of bookings.

How do you calculate each platform's share of bookings when the same listing is published on several sites?

Over the same period, count bookings by the platform on which each was made, even if the listing is identical across several sites. Divide the number of bookings for each platform by the total bookings obtained on those sites, then multiply the result by 100. Compare results over several months before deciding where to concentrate your efforts.

Should you compare platforms by number of bookings or by net revenue after commissions?

Compare the number of bookings per platform if you want to know where to focus your writing and updates. If you want to know which platform brings you the most money, compare net revenue after commissions over the same period. The platform that brings the most bookings is not necessarily the one that leaves you with the most income.

How do you calculate the revenue per hour of management for each platform?

Over the same period, subtract the commissions and site-specific fees from the revenue each site generates. Then divide that net revenue by the number of hours spent managing the listings and bookings on that site. You will see which platform pays best for your time.

What should you do if your bookings don’t follow the 80/20 split?

The 80/20 split is an assumption, not a guaranteed outcome. Calculate the share of bookings each platform brings and compare several months. Focus your efforts on the sites that bring bookings and pay best for your time, without closing other listings based on a single period.