In the restaurant and hotel business, there is an indicator that every manager is very interested in. That’s the technical term: occupancy. So, what is occupancy? Let us learn about this right in the article information below!
What is Occupancy? What is the Occupancy Rate?
The way to call English terms is very familiar to the restaurant and hotel industry. Therefore, it is not surprising that many managers still refer to occupancy. So, what is occupancy?
Occupancy rate is an important indicator that hotel managers need to pay attention to.
Watching: What is Occupancy
According to expert explanations, occupancy means probability (occupation). They are very commonly used in the context of the phrase occupancy rate.
So, what is occupancy rate? It’s a term for hotel room occupancy rates. This is one of the important metrics that show the percentage of hotel rooms that are filled or booked with available KPIs. Based on this ratio, managers can evaluate the performance of a hotel. Occupancy rate is considered as one of the three metrics that managers need to know, understand and update continuously. Because, it will reflect the most intuitive way on the business performance of the hotel. From there, helping managers change or maintain business strategies.
How to calculate occupancy
?Occupancy rate is an important indicator and managers need to fully grasp. This number will change depending on each week, month, quarter, year, etc. When it comes to occupancy, people often refer to their calculation.
Occupancy rate has a fairly simple calculation.
The formula for calculating the room rate is made according to the following method:
– Calculate for a day: T = (Number of rooms sold during the day x 100%)/(Number of rooms that can be accommodated in a day)
– Calculate for a period: T = (Number of rooms sold in the period x 100%)/(Number of rooms that can be accommodated in the period)
The number of rooms sold in a day or in a period is counted by the front desk. The number of rooms that can be accommodated includes all the rooms that the hotel can provide in business. This is the number of rooms remaining after removing the rooms that are under maintenance or the number of rooms that are not put into business.
How to increase Occupancy rate
?There is a basic formula that can be calculated easily. However, how to make the occupancy rate always grow steadily is not easy. Especially with the hotel and restaurant industry, which has many fluctuations. Finding out what occupancy is or what occupancy rate is also requires updating experiences to increase room capacity effectively.
Customize service packages flexibly
Need to customize according to each service package to attract customers.
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To have the occupancy rate grow steadily. The first factor you need to do is increase the number of bookings. The flexible adjustment of service packages will help guests have more choices. Not only are the new customers, but the hotel also needs to pay attention to the group of guests who have stayed and used the service at the hotel. When they keep coming and choosing you to stay, it shows that they really appreciate your room service packages. Therefore, customizing service packages is very important. They play the role of not only scoring points in the eyes of new customers but also retaining customers in the next time.
Building attractive discounts and promotions
Promotions will attract customers to your room service.
Just like the creation of service packages, the introduction of discount packages; Promotion is also one of the great keys to increase occupancy rate.
The construction of discount and promotion programs needs to be diversified in many methods. Be it booking a room, a student discount or a seasonal discount, etc. Please study carefully the needs of your customers to come up with attractive promotional packages!
Associating with travel companies and businesses
The hotel always has direct or indirect contacts with tour operators. Therefore, in order for the occupancy index to have a good development, you should make links with travel companies and businesses. Taking advantage and attracting customer groups from tourism will help the hotel always have a very stable number of rooms booked and rented in advance. Of course, in the link the hotel will have to split the commission to the travel agency. However, compared to the hotel room being vacant, the option of linking with a travel company is still a great choice.
Joining smart agent room sales systems
Room sales systems will help increase the number of hotel rooms booked.
Participating in the registration of room sales on agency room sales systems is also a very worthwhile option so that the occupancy rate can increase. Joining the room sales system will help more and more customers know your hotel’s name. Hotels can also connect with potential customers to help room capacity is always at maximum.
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Hopefully, the information that Vinapad provides above will help you understand what occupancy is? Please apply this index to be able to provide the most stable and developed hotel business policy and direction.