Do you know your occupancy numbers?
Do you know how your occupancy compares to your peers?
Are you only half-full most of the year?
These are common questions amongst Stays working hard to make money and get ahead.
Occupancy levels are one of the bigger key indicators in the hospitality game. Its because a property is a lot like a factory – there’s quite and effort to startup and shut down a Stay, much like a factory, so you need to constantly have a program to attract and retain guests. Even when open there’s an ongoing requirement to keep everything shipshape, and to pay these bills requires ongoing customers.
Which on the positive side means you’ve got lots of opportunity to experiment with other markets – like the longer staying digital nomad market, or different niches.
If you can make another €100 a week more then you’re ahead.
Which still leaves lots of upside for filling empty rooms across North America with paying guests.
Statistics like this give you an indication of an overall market comparison. Obviously there are properties that will do better and worse than averages.
Occupancy is a real indicator that what you are doing is working or not.
In other words it is a reflection of your own management expertise. It shows that you can attract new guests as well as continue to service repeat guests.
If you can perform better than your peers then it is and indication that you have a superior business strategy. (Mindful that profitless volume isn’t a good thing either)
Just for comparison, over in Australia the occupancy is significantly higher overall at present – around 74% reflecting the more urban nature of Australia and its strong economy and strong business demand in cities particularly. The closure of a number of regional properties as the market changes has also improved the country’s overall statistics.
So, back to the key question – Do you know your own Occupancy?
Photos by Dylan Gillis on Unsplash