Occupancy rate is the percentage of available rooms sold in a given period, calculated as rooms sold divided by rooms available. It measures volume of demand captured but says nothing about the price achieved.
Occupancy is the oldest hotel metric and still drives staffing, housekeeping schedules and purchasing decisions. It is typically analyzed by day of week and season, since a monthly average hides the difference between full weekends and empty midweeks.
Maximizing occupancy is not the goal in itself. Running full at heavily discounted rates can produce less profit than running partly full at strong rates, with more wear and service cost. Occupancy is best read together with ADR and RevPAR.
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