Revenue
Occupancy Rate
The percentage of booked nights relative to the total available nights in a given period.
What is Occupancy Rate?
Occupancy Rate measures how "full" your facility is. It is a key indicator of your management efficiency: a low rate can indicate pricing, marketing, or seasonality issues.
How to Calculate It
Occupancy Rate = (Nights Sold / Available Nights) x 100
Example: If in June (30 days) you rented the house for 24 nights: (24 / 30) * 100 = 80%
The Ideal Occupancy
Having 100% occupancy is not always the ideal goal.
- If you are always at 100%: Your prices are probably too low. You are leaving money on the table and unnecessarily wearing down the property.
- If you are below 40-50%: You might be too expensive, have unattractive photos, or negative reviews.
The goal is to maximize RevPAR (Revenue Per Available Room) by finding the right balance between price (ADR) and occupancy.
Strategies to Increase It
- Reduce Minimum Stay during low-demand periods.
- Offer last-minute discounts.
- Improve visibility on OTAs.