What is occupancy rate?
Occupancy rate is the percentage of occupied rooms in your property at a given time. It is one of the most high-level indicators of success and is calculated by dividing the total number of rooms occupied, by the total number of rooms available, times 100, creating a percentage such as 75% occupancy.
Applying length of stay (LOS) restrictions is the best way to increase your occupancy rate.
Minimum length of stay:
Accept longer duration stays and reject shorter duration stays for arrival when you anticipate a period of high demand followed by low demand. This helps you increase occupancy during the slow period afterwards.
Maximum length of stay:
Don’t accept reservations at specific rates for multiple night stays extending into your high demand period (when you expect to sell rooms at higher rates). Guests who want to stay beyond the maximum length of stay period can be charged rack rate for subsequent nights.
Closed to arrival dates:
When you have very high demand, and you expect to reach maximum occupancy through stayovers as opposed to new arrivals, don’t accept reservations for arrivals on the day in question, and only allow guests staying through from previous nights.
Get the Occupancy Rate formula and more: Download the formula sheet
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