Tips to increase your hotel’s occupancy rate
Occupancy is a constant concern for hoteliers. Of course, you want your occupancy rate to be as close to 100% as possible. The question is, how do you reach this goal? We’ve given the matter some thought and put together a list of tips to help you increase your occupancy rate.
Understanding occupancy rate
The occupancy rate is used to determine over a given period the proportion of your rooms that are rented compared to the total number of rooms available. This rate can be calculated by day, month, week or another frequency and will vary according to the period under consideration. The higher your occupancy rate, the more your rooms are booked, and the busier your hotel is. Your occupancy rate may be lower at certain times. This situation happens at every hotel, even if you’re looking to have the highest possible occupancy rate as often as possible. Factors that will affect your occupancy rate include the season, weather, less favourable political or economic conditions or even a poorly positioned offer.
While your average occupancy rate may be close to 100% on Saturdays, on Wednesdays, it may hover at 30%. By studying your occupancy rate trends, you can learn a great deal about your establishment and implement targeted actions to increase your occupancy rate when needed, whether it’s for days of the week that aren’t as busy or for times of the year when business is slower. You must identify when dips in occupation occur and the reasons for them. Conversely, you also need to pinpoint the factors that boosted your occupancy rate for a given period. By doing this, you can repeat what you have done to increase your occupancy rate at other times when occupancy isn’t at its peak.
Things that impact occupancy rate
Occupancy rate will vary depending on your hotel’s type and location. For example, it stands to reason that the occupancy rate at a hotel located on a ski mountain will be much higher in winter than in summer. Conversely, if a hotel is located on the beach, it will be busier during the summer. Many other factors can affect your occupancy rate, including room rates, the guest experience, your online reputation, room cleanliness and the quality and availability of your facilities. That being said, without a doubt, a hotel located on famous ski mountain won’t need to exert a great deal of effort during the winter period. However, during the summer season, this hotel can attract as many guests if the surrounding attractions are just as active.
How to increase your occupancy rate
Define your target market
Create customized packages and promotions
Make the most of events
Offer tempting loyalty programs
Ensure your hotel is accessible