The logical conclusion regarding a favourable occupancy rate for hotels is 100 percent. However, operating your hotel with a 100% occupancy rate is not the most profitable strategy. The best software from PRICEPOINT guides businesses on how to calculate hotel occupancy.

If you have booked every room, you may have missed out on money by not charging higher rates, and when every room is booked, your costs may rise. Your hotel's ideal occupancy rate allows you to make the most money while reducing expenses. As the number of guests increases, luxury hotels will also want to provide exceptional service to every guest.

For example, if your hotel consistently sells out with reservations made well in advance, consider raising your rates. There will be a few nights sold out, like during holidays or special events, but if your hotel is fully booked every night, there is enough demand for you to raise your rates.

A 100% occupancy rate can result in an increase in costs in addition to revenue. For instance, if you have 95 rooms and each housekeeper can clean 10 rooms daily, it might be best to book up to 90 rooms each night to avoid hiring an additional housekeeper.

Why do hotels track occupancy rates?

A hotel's occupancy is an excellent metric for reaching its position to its rivals and its historical data. Setting rates, predicting stay patterns, scheduling staff, and planning renovations or maintenance are all aided by knowing how your hotel compares to other hotels in the market and previous years. You can schedule enough staff and not plan a renovation on those dates if you know from past data that a particular weekend will have a lot of visitors.

It is necessary to know how to calculate hotel occupancy. Occupancy rate is important in evaluating the hotel's overall implementation because hotel owners and operators frequently set ADR, RevPAR, and occupancy rate goals. As a result, occupancy rates can influence future capital expenditures, employee compensation and bonuses, and brand relationships.

Visit : https://pricepoint.co/