Shimla

As of June 2026, Shimla, Kufri, Chail have 1,726 active Airbnb and VRBO listings. This represents a 4% increase from the previous year.

The average Airbnb or VRBO in Shimla generates ₹524K per year. High-performing properties earn ₹3.9M/year, while low-performing properties earn ₹145K/year. This significant revenue disparity suggests that market returns are highly sensitive to property-specific positioning rather than general market baseline performance.

Airbnb and VRBO can be profitable in Shimla. Average annual revenue is ₹524K with 10% occupancy. High-performing properties earn up to ₹3.9M/year. The 10% average occupancy indicates a challenging environment where only a small segment of inventory successfully captures consistent demand.

The average occupancy rate for Airbnbs and VRBOs in Shimla is 10%. This occupancy level, combined with an average nightly rate of ₹14K, results in a RevPAR (revenue per available room) of ₹1K per day.

4+ bedroom properties demonstrate the strongest performance in Shimla, with annual revenue of ₹1.5M. These properties balance operating costs and rental demand most effectively in the Shimla market. Property performance varies significantly by location, amenities, and management quality.

Short-term rental regulations vary by jurisdiction in the Shimla area. Shimla: Moderate. Hotel & Restaurant Association registration required, municipal permissions needed. Tourism department oversight exists but enforcement inconsistent. Many operate informally. Kufri: Lenient. Minimal formal STR framework, basic guest registration with police required. Light enforcement, many homestays operate without full compliance. Chail: Lenient. Guest registration mandatory, forest permissions for some areas. Limited enforcement infrastructure, informal operations common in this smaller hill station. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Shimla Airbnb and VRBO market is currently showing balanced conditions. Supply has grown 4% year-over-year, while RevPAR has decreased 4%. This indicates balanced supply-demand dynamics. These offsetting metrics signal a market reaching equilibrium, preventing rapid expansion while keeping existing operators under pressure to maintain yields.

Launch around March, 2-3 months before peak spring season (June peaks). This pre-peak timing lets you build reviews when competition is 38% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (October-September) when gaining traction is harder.

The most common amenities in Shimla listings include: Kitchen (92%), Tv (89%), Heating (78%), Pets Allowed (72%), Balcony (60%). Amenities that boost revenue the most include Air Conditioning, Pool, Hot Tub, with Air Conditioning properties earning approximately 218% more (₹4.5M/year vs ₹1.4M/year).

Monthly estimated revenue per listing in Shimla over the last 12 months: May: ₹38K, June: ₹71K, July: ₹29K, August: ₹31K, September: ₹17K, October: ₹26K, November: ₹31K, December: ₹66K, January: ₹45K, February: ₹20K, March: ₹37K, April: ₹50K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Shimla is ₹14K, up 22% year-over-year. By property size: 1-bedroom properties average ₹5K/night, 2-bedroom properties average ₹8K/night, 3-bedroom properties average ₹15K/night, 4+ bedroom properties average ₹34K/night. Rates peak in April and are lowest in October.

Guests in Shimla book an average of 13 days in advance, down 25% from last year. By property size: 1-bedroom: 13 days, 2-bedroom: 12 days, 3-bedroom: 13 days, 4+ bedroom: 16 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Shimla Airbnb and VRBO market has seen the following changes: supply grew 4%, revenue per listing decreased 4%, occupancy fell 23%, average nightly rates increased 22%, and lead time decreased 25%. These shifts demonstrate a transition toward shorter booking windows and higher pricing thresholds despite declining utilization.

In Shimla, Saturday sees the highest booking demand while Tuesday has the lowest. Nightly rates peak on Friday and are lowest on Wednesday. Weekends show 60% higher occupancy than weekdays.