Shimla Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Himachal Pradesh, India

Source: AirROI
Last updated: 2025-03-31

Is Airbnb profitable in Shimla in 2025? Explore comprehensive Airbnb analytics for Shimla, Himachal Pradesh, India to uncover income potential. This 2025 STR market report for Shimla, based on AirROI data from April 2024 to March 2025, reveals key trends in the market of 318 active listings.

Whether you're considering an Airbnb investment in Shimla, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Shimla Airbnb data is crucial. Leveraging the low regulation environment is key to maximizing your short term rental income potential. Let's dive into the specifics.

Key Shimla Airbnb Performance Metrics Overview

Avg. Daily Rate (ADR)(?)
$97
The average rental revenue earned for an occupied room per day in Shimla.
Occupancy Rate(?)
22.3%
Lower demand, potentially seasonal or market factors at play.
Median Annual Revenue(?)
$4,935
Typical annual income for an Airbnb listing in Shimla. Factors like property type, size, and location influence actual earnings.
Revenue Growth YoY(?)
31.6%
Strong growth (31.6%) vs. last year.
Peak Revenue Month(?)
May
The month with the highest average earnings, indicating peak season in Shimla.
Lowest Revenue Month(?)
September
The month with the lowest average earnings, indicating the low season in Shimla.
STR Regulation Level(?)
Low
Fewer regulations, offering more operational flexibility.
Active Airbnb Listings(?)
318
Total number of active short-term rentals listed.

Monthly Airbnb Revenue Variations & Income Potential in Shimla (2025)

Understanding the monthly revenue variations for Airbnb listings in Shimla is key to maximizing your short term rental income potential. Seasonality significantly impacts earnings. Our analysis, based on data from the past 12 months, shows that the peak revenue month for STRs in Shimla is typically May, while September often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Shimla across different performance tiers:

  • Best-in-class properties (Top 10%) achieve $1,841+ monthly, often utilizing dynamic pricing and superior guest experiences.
  • Strong performing properties (Top 25%) earn $943 or more, indicating effective management and desirable locations/amenities.
  • Typical properties (Median) generate around $371 per month, representing the average market performance.
  • Entry-level properties (Bottom 25%) see earnings around $152, often with potential for optimization.

Average Monthly Airbnb Earnings Trend in Shimla

Shimla Airbnb Occupancy Rate Trends (2025)

Maximize your bookings by understanding the Shimla STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Maysees the highest demand (peak season occupancy), while September experiences the lowest (low season). Effective strategies, like adjusting minimum stays or offering promotions, can boost occupancy during slower periods. Here's how different property tiers perform in Shimla:

  • Best-in-class properties (Top 10%) achieve 51%+ occupancy, indicating high desirability and potentially optimized availability.
  • Strong performing properties (Top 25%) maintain 34% or higher occupancy, suggesting good market fit and guest satisfaction.
  • Typical properties (Median) have an occupancy rate around 18%.
  • Entry-level properties (Bottom 25%) average 9% occupancy, potentially facing higher vacancy.

Average Monthly Occupancy Rate Trend in Shimla

Average Daily Rate (ADR) Airbnb Trends in Shimla (2025)

Effective short term rental pricing strategy in Shimla involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Shimla typically peaks in December and dips lowest during March. Leveraging Airbnb dynamic pricing tools or strategies based on this seasonality can significantly boost revenue. Here's a look at the typical nightly rates achieved:

  • Best-in-class properties (Top 10%) command rates of $201+ per night, often due to premium features or locations.
  • Strong performing properties (Top 25%) achieve nightly rates of $101 or more.
  • Typical properties (Median) charge around $52 per night.
  • Entry-level properties (Bottom 25%) earn around $30 per night.

Average Daily Rate (ADR) Trend by Month in Shimla

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Airbnb Seasonality Analysis & Trends in Shimla (2025)

Peak Season (May, December, June)
  • Revenue averages $1,092 per month
  • Occupancy rates average 29.8%
  • Daily rates average $101
Shoulder Season
  • Revenue averages $727 per month
  • Occupancy maintains around 23.1%
  • Daily rates hold near $96
Low Season (February, August, September)
  • Revenue drops to average $517 per month
  • Occupancy decreases to average 19.1%
  • Daily rates adjust to average $97

Seasonality Insights for Shimla

  • The Airbnb seasonality in Shimla shows highly seasonal trends requiring careful strategy. While the sections above show seasonal averages, it's also insightful to look at the extremes:
  • During the high season, the absolute peak month showcases Shimla's highest earning potential, with monthly revenues capable of climbing to $1,198, occupancy reaching a high of 33.1%, and ADRs peaking at $103.
  • Conversely, the slowest single month of the year, typically falling within the low season, marks the market's lowest point. In this month, revenue might dip to $434, occupancy could drop to 17.4%, and ADRs may adjust down to $89.
  • Understanding both the seasonal averages and these monthly peaks and troughs in revenue, occupancy, and ADR is crucial for maximizing your Airbnb profit potential in Shimla.

Seasonal Strategies for Maximizing Profit

  • Peak Season: Maximize revenue through premium pricing and potentially longer minimum stays. Ensure high availability.
  • Low Season: Offer competitive pricing, special promotions (e.g., extended stay discounts), and flexible cancellation policies. Target off-season travelers like remote workers or budget-conscious guests.
  • Shoulder Seasons: Implement dynamic pricing that balances peak and low rates. Target weekend travelers or specific events. Offer slightly more flexible terms than peak season.
  • Regularly analyze your own performance against these Shimla seasonality benchmarks and adjust your pricing and availability strategy accordingly.

Best Areas for Airbnb Investment in Shimla (2025)

Exploring the top neighborhoods for short-term rentals in Shimla? This section highlights key areas, outlining why they are attractive for hosts and guests, along with notable local attractions. Consider these locations based on your target guest profile and investment strategy.

Neighborhood / AreaWhy Host Here? (Target Guests & Appeal)Key Attractions & Landmarks
Mall Road
The heart of Shimla, surrounded by shops, cafes, and spectacular views of the mountains. A prime location for tourists looking for accessibility to attractions and scenic beauty.
The Ridge, Christ Church, Lakkar Bazaar, Jakhu Temple, Shimla Mall, State Museum of Himachal Pradesh
The Ridge
Famous for its panoramic views of the surrounding mountains, it is a must-visit for anyone coming to Shimla. Perfect location for hosting travelers seeking a picturesque experience.
Jakhu Hill, Christ Church, The Mall, Summer Hill, Himalayan Bird Park
Lakkar Bazaar
Known for its wooden crafts and souvenirs, this area is bustling with local shops and eateries. Ideal for those looking to experience local culture and shopping.
Wooden Handicrafts, Local eateries, Souvenir shops, Jakhu Temple, St. Mary's Church
Jakhu Hill
Offers breathtaking views and tranquility away from the city bustle, making it a great spot for nature lovers and those seeking peace. Popular for hiking and nature walks.
Jakhu Temple, Monkey Temple, Panoramic views of Shimla, Wooded trails, Tranquil environment
Chail
Nearby hill station known for its serene landscapes and the world's highest cricket ground. A great destination for travelers looking for a more relaxed atmosphere and nature.
Chail Palace, Highest Cricket Ground, Kali Ka Tibba, Chail Wildlife Sanctuary, River Valley
Mashobra
A quaint and less crowded area, ideal for those looking to escape the touristy spots. Perfect for nature lovers and those who enjoy tranquility and natural beauty.
Mashobra Greens, Himalayan Nature Park, Mashobra Apple Orchard, Scenic walks, Peaceful environment
Kufri
Famous for its adventure activities like skiing and horse riding in winter. A popular family destination with lots of outdoor activities.
Kufri Fun World, Himalayan Nature Park, Horse riding, Skiing opportunities, Adventure sports
Shoghi
A peaceful village close to Shimla, known for its stunning views and serene surroundings, perfect for tourists looking to unwind in nature.
Shoghi Nature Park, Amazing views, Quiet surroundings, Hiking trails, Local culture

Understanding Airbnb License Requirements & STR Laws in Shimla (2025)

While Shimla, Himachal Pradesh, India currently shows low STR regulations, specific Airbnb license requirements might still exist or change. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for Shimla to ensure full compliance before hosting.

(Source: AirROI data, 2025, finding no licensed listings among those analyzed)

Top Performing Airbnb Properties in Shimla (2025)

Benchmark your potential! Explore examples of top-performing Airbnb properties in Shimlabased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.

StayVista at Rose Cottage w/Sunroom

StayVista at Rose Cottage w/Sunroom

Entire Place • 6 bedrooms

$89,950
Revenue
23.8%
Occupancy
$662.27
Daily Rate
8 BHK Heritage Private cottage in Central Shimla

8 BHK Heritage Private cottage in Central Shimla

Private Room • 8 bedrooms

$37,441
Revenue
32.5%
Occupancy
$355.63
Daily Rate
StayVista at Vintage @ Rose Cottage w/Sunroom

StayVista at Vintage @ Rose Cottage w/Sunroom

Private Room • 5 bedrooms

$35,942
Revenue
21.0%
Occupancy
$556.98
Daily Rate
Cozy 3BH with Luxury Amenties, Saanjh~ Attic Abode

Cozy 3BH with Luxury Amenties, Saanjh~ Attic Abode

Entire Place • 3 bedrooms

$33,298
Revenue
50.3%
Occupancy
$173.12
Daily Rate
5 BHK Heritage Private Cottage in Central Shimla

5 BHK Heritage Private Cottage in Central Shimla

Private Room • 5 bedrooms

$32,019
Revenue
46.5%
Occupancy
$183.73
Daily Rate
The Orchard | 5BHK House Shimla | By Homestaydaddy

The Orchard | 5BHK House Shimla | By Homestaydaddy

Entire Place • 5 bedrooms

$26,505
Revenue
23.6%
Occupancy
$305.56
Daily Rate

Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.

Top Performing Airbnb Hosts in Shimla (2025)

Learn from the best! This table showcases top-performing Airbnb hosts in Shimla based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.

Host NamePropertiesGrossing RevenueStay ReviewsAvg Rating
Host #4519036805$164,32220.00/5.0
Host #5152985388$123,80530.00/5.0
Srijan8$97,351201.69/5.0
Jai3$87,754994.75/5.0
Host #4441037943$46,81000.00/5.0
Vijendra5$46,3794094.84/5.0
Rohit Darshan6$43,886603.88/5.0
Ojas4$43,852173.71/5.0
Gaurav4$39,349422.49/5.0
Saumya3$33,377165.00/5.0

Analyzing the strategies of top hosts, such as their property selection, pricing, and guest communication, can offer valuable lessons for optimizing your own Airbnb operations in Shimla.

Dive Deeper: Advanced Shimla STR Market Data (2025)

Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Shimla. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.

Explore Advanced Metrics

Shimla Short-Term Rental Market Composition (2025): Property & Room Types

Room Type Distribution

Property Type Distribution

Market Composition Insights for Shimla

  • The Shimla Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 51.9% of the 318 active rentals. This indicates strong guest preference for privacy and space.
  • However, a notable 46.9% share for Private Rooms suggests opportunities for budget-conscious travelers or hosts renting out spare rooms.
  • Looking at the property type distribution in Shimla, House properties are the most common (35.8%), reflecting the local real estate landscape.
  • Houses represent a significant 35.8% portion, catering likely to families or larger groups.
  • The presence of 28.6% Hotel/Boutique listings indicates integration with traditional hospitality.
  • Smaller segments like others, outdoor/unique, unique stays (combined 5.7%) offer potential for unique stay experiences.

Shimla Airbnb Room Capacity Analysis (2025): Bedroom Distribution

Distribution of Listings by Number of Bedrooms

Room Capacity Insights for Shimla

  • The dominant room capacity in Shimla is 2 bedrooms listings, making up 30.5% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
  • Together, 2 bedrooms and 1 bedroom properties represent 55.0% of the active Airbnb listings in Shimla, indicating a high concentration in these sizes.
  • A significant 31.1% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Shimla.

Shimla Vacation Rental Guest Capacity Trends (2025)

Distribution of Listings by Guest Capacity

Guest Capacity Insights for Shimla

  • The most common guest capacity trend in Shimla vacation rentals is listings accommodating 8+ guests (19.5%). This suggests the primary traveler segment is likely larger groups.
  • Properties designed for 8+ guests and 6 guests dominate the Shimla STR market, accounting for 34.9% of listings.
  • 38.4% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Shimla.
  • On average, properties in Shimla are equipped to host 4.1 guests.

Shimla Airbnb Booking Patterns (2025): Available vs. Booked Days

Available Days Distribution

Booked Days Distribution

Booking Pattern Insights for Shimla

  • The most common availability pattern in Shimla falls within the 271-366 days range, representing 79.9% of listings. This suggests many properties have significant open periods on their calendars.
  • Approximately 97.5% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
  • For booked days, the 1-30 days range is most frequent in Shimla (41.8%), reflecting common guest stay durations or potential owner blocking patterns.
  • A notable 2.8% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.

Shimla Airbnb Minimum Stay Requirements Analysis

Distribution of Listings by Minimum Night Requirement

1 Night (90.6%)

1 Night

278 listings

90.6% of total

2 Nights (5.9%)

2 Nights

18 listings

5.9% of total

3 Nights (1%)

3 Nights

3 listings

1% of total

4-6 Nights (0.3%)

4-6 Nights

1 listings

0.3% of total

30+ Nights (2.3%)

30+ Nights

7 listings

2.3% of total

Key Insights

  • The most prevalent minimum stay requirement in Shimla is 1 Night, adopted by 90.6% of listings. This highlights the market's preference for shorter, flexible bookings.
  • A strong majority (96.5%) of the Shimla Airbnb data shows acceptance of very short stays (1-2 nights), indicating a dynamic, high-turnover market.
  • Dedicated monthly rentals (30+ nights) represent a small niche (2.3%), possibly an untapped area for hosts.

Recommendations

  • Align with the market by considering a 1 Night minimum stay, as 90.6% of Shimla hosts use this setting.
  • Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Shimla.

Shimla Airbnb Cancellation Policy Trends Analysis (2025)

Super Strict 30 Days

1 listings

0.5% of total

Flexible (34.5%)

Flexible

70 listings

34.5% of total

Moderate (27.6%)

Moderate

56 listings

27.6% of total

Firm (14.3%)

Firm

29 listings

14.3% of total

Strict (23.2%)

Strict

47 listings

23.2% of total

Cancellation Policy Insights for Shimla

  • The prevailing Airbnb cancellation policy trend in Shimla is Flexible, used by 34.5% of listings.
  • There's a relatively balanced mix between guest-friendly (62.1%) and stricter (37.5%) policies, offering choices for different guest needs.

Recommendations for Hosts

  • Consider adopting a Flexible policy to align with the 34.5% market standard in Shimla.
  • Regularly review your cancellation policy against competitors and market demand shifts in Shimla.

Shimla STR Booking Lead Time Analysis (2025)

Average Booking Lead Time by Month

Booking Lead Time Insights for Shimla

  • The overall average booking lead time for vacation rentals in Shimla is 25 days.
  • Guests book furthest in advance for stays during October (average 42 days), likely coinciding with peak travel demand or local events.
  • The shortest booking windows occur for stays in December (average 20 days), indicating more last-minute travel plans during this time.
  • Seasonally, Fall (34 days avg.) sees the longest lead times, while Summer (23 days avg.) has the shortest, reflecting typical travel planning cycles.

Recommendations for Hosts

  • Use the overall average lead time (25 days) as a baseline for your pricing and availability strategy in Shimla.
  • For October stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 42 days out to capitalize on advance planning.
  • Target marketing efforts for the Fall season well in advance (at least 34 days) to capture early planners.
  • Monitor your own booking lead times against these Shimla averages to identify opportunities for dynamic pricing adjustments.

Popular & Essential Airbnb Amenities in Shimla (2025)

Amenity Prevalence

Amenity Insights for Shimla

  • Essential amenities in Shimla that guests expect include: Wifi, Hot water, Essentials. Lacking these (any) could significantly impact bookings.
  • Popular amenities like TV, Heating, First aid kit are common but not universal. Offering these can provide a competitive edge.

Recommendations for Hosts

  • Ensure your listing includes all essential amenities for Shimla: Wifi, Hot water, Essentials.
  • Prioritize adding missing essentials: Wifi, Hot water, Essentials.
  • Consider adding popular differentiators like TV or Heating to increase appeal.
  • Highlight unique or less common amenities you offer (e.g., hot tub, dedicated workspace, EV charger) in your listing description and photos.
  • Regularly check competitor amenities in Shimla to stay competitive.

Shimla Airbnb Guest Demographics & Profile Analysis (2025)

Guest Origin: Domestic vs. International
Top 5 Cities of Origin
Top 5 Countries of Origin
Top 5 Languages Spoken
Guest Age Distribution (Birth Decade)

Guest Profile Summary for Shimla

  • The typical guest profile for Airbnb in Shimla consists of primarily domestic travelers (77%), often arriving from nearby New Delhi, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or Hindi.
  • Domestic travelers account for 77.3% of guests.
  • Key international markets include India (77.3%) and United States (6.4%).
  • Top languages spoken are English (40.8%) followed by Hindi (35.1%).
  • A significant demographic segment is the Post-2000s (Gen Z/Alpha) group, representing 50% of guests.

Recommendations for Hosts

  • Target domestic marketing efforts towards travelers from New Delhi and Mumbai.
  • Tailor amenities and listing descriptions to appeal to the dominant Post-2000s (Gen Z/Alpha) demographic (e.g., highlight fast WiFi, smart home features, local guides).
  • Highlight unique local experiences or amenities relevant to the primary guest profile.
  • Consider seasonal promotions aligned with peak travel times for key origin markets.

Nearby Short-Term Rental Market Comparison

How does the Shimla Airbnb market stack up against its neighbors? Compare key performance metrics like average monthly revenue, ADR, and occupancy rates in surrounding areas to understand the broader regional STR landscape.

MarketActive PropertiesMonthly RevenueDaily RateAvg. Occupancy
barlowganj23$1,113$191.2427%
Dharampur78$1,000$188.8821%
Jabarkhet27$966$110.2932%
Parwanoo44$886$205.1421%
bhatta68$863$115.6532%
bluchor hill25$805$145.5122%
Chail18$784$241.8819%
punkalgaon46$761$135.8025%
Kasauli74$708$187.9920%
Maiti17$1,285$308.6719%

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