Oana Boteanu Staff asked 7 years ago
KPI for Measuring of % of Paid Occupancy
The KPI with this visual info-graphic is included in Hotel KPIs pack.
This indicator is for measuring the total number of hotel rooms sold as a percentage of total available hotel rooms. This ratio offers a very accurate figure, as it excludes any rooms occupied as part of a complimentary deal.
Managers may use this ratio to forecast profits, room sale performance or compare against competition. The ratio is also useful when making strategic decisions, such as planning marketing campaigns and promotions.
Formula:
Total number of rooms sold / Total number of hotel rooms available x 100
KPI Units: %
KPI Time Frame: update quarterly
Example:
This KPI is adjacent to the % of Hotel Beds Occupied, but it looks at how many hotel beds/hotel rooms have been paid for, excluding any complimentary deals, free rooms etc.
Total number of rooms sold / Total number of hotel rooms available x 100
Total rooms sold: 100
Total rooms available: 160
Paid occupancy %: 100/160 x 100 = 62.5 %
The aim is to maximise this %, anything close to 90-100%.
The hotel I work for creates seasonal deals that help to keep the paid occupancy % up by at least 15 %. Examples of deals are spa packages, romantic escapes, half board deals, 2 x 3 days etc.
