Hotel Occupancy Rate Calculator – OCC Calculator

OCC (Occupancy Rate Calculator)

An occupancy rate calculator (OCC) is a must if you’re a hotel or serviced apartment owner. It will give you an idea as to the number of rooms that are occupied on the property at any given time. Let us look at this metric and the calculation process in more detail below.

Knowing More About Occupancy Rates

So, what is the occupancy rate of your property? It is the number of rented or sold rooms as a percentage of the total inventory that is available. The calculation formula is basically the total number of units that are occupied, divided by the total number of units available. So, let’s say you have 100 rooms on your property and 50 rooms are occupied. In this scenario, you can say that your occupancy rate stands at 50%.

You can use this metric to gauge how much of your property is actually occupied at any given time. Once you start analyzing this for different times of the year and seasons, you can unlock various guest behavior and booking patterns, helping you find out how your hotel performs in each season and what works well to scale up occupancy at particular times. You can use the metric to take better decisions regarding the performance of your hotel. So, if you understand that occupancy rates always go up on Valentine’s Day, for instance, you can capitalize on it by retaining and expanding the special couple packages that brought more people in the first place.

What’s a Good Occupancy Rate and How to Increase It?

It goes without saying that you should always aim for a 100% occupancy rate on your property. However, since it’s not always possible, a good rate is anywhere around 70% and higher. If the occupancy rate remains consistently low, then you need to shake things up and identify what’s going wrong.

On that note, here are a few ways to increase your hotel’s occupancy rate:

• Maximize all your distribution booking channels- Your distribution strategy plays a crucial role in the marketing mix of the property. The more channels you have, the bigger your target audience and brand awareness in turn. Create your direct booking engine, use OTAs (online travel agencies), Google Hotel Ads, and other platforms to sell your property.
• Provide packages and add-ons- Value packages and add-ons are excellent ways to increase your hotel’s occupancy rate. Add-ons are given to guests to enhance their stays at your property and may include unique experiences and other perks. Automated up- selling at the online check-in stage is also effective. At the same time, packages bring in more guests, especially when they’re saving some money.
• Set up your revenue management system- Dynamic pricing is the key when it comes to setting up your revenue management system. It will help you sell more rooms at the best rates. Occupancy is directly influenced by room rates and revenue management. With dynamic pricing, you can optimize ROI by setting rates reflecting present demand and seasonality. It naturally scales up your revenue potential and market competitiveness alike.
• Have local and domestic rates- You can offer more value to guests with local rates. By offering exclusive domestic rates, you can scale up your occupancy levels throughout the year. Your biggest market is always local and it’s only going to need a little push on your part!
• Discounts and flash sales offers- You can always drive more bookings and increase your occupancy rate by providing discounts and flash sales offers. People always look for better value and appreciate these offers. At the same time, reward your loyal customers with special discounts and perks, which will lead to higher repeat bookings and increased word-of-mouth recommendations. Flash sales will keep your potential guests excited, since you’ll have value deals within a particular time limit. It encourages more bookings and swiftly increases your occupancy rate in turn.