Keeping Occupancy in Focus

Occupancy is the bread and butter of success in the hotel and holiday industry. Savvy marketers know they need to focus on packing the house during peak months and nudging those shoulder seasons. Revenue managers, who live and breathe occupancy reports, understand just how crucial they are for driving profitability.

Keeping occupancy as the foundation of marketing, however, is quite tricky to do. 

As hospitality marketers, there’s always something new on the to-do list. A launch of a new product line, a refurbishment of an old product line, more Instagram, more photography, more referral partners. 

All the elements above are tactics to improve occupancy, however, keeping laser-focused on marginal growth is important in a reactive environment. Making sure Peak is packed to the rafters, whilst also reasonably filling shoulder months is a must. Black Friday Sales, Boxing Day Sales, to discount or not, are all key landmarks that can determine a successful year or not.

In this book we will give you the tools and tactics to not only drive bookings, but focus everything towards the cornerstone that is Occupancy. From direct booking strategies to enhanced PPC practices, best practice rebooking campaigns, you’ll have a complete toolkit to enhance your marketing strategies. 

What is an Occupancy Report?

Let’s start with what an Occupancy Report is not.  An occupancy report is not a profit and loss document. It is the percentage of available rooms that are occupied, calculated by dividing the number of occupied rooms by the total number of available rooms.to last year’s metric.It can be as detailed, or as simple as needed, however it must track fill rate rather than revenue.

Over the past 15 years, we’ve had the privilege of partnering with an array of exceptional establishments—hotels, holiday parks, guest houses, and charming pubs with cosy rooms. From this wealth of experience, we’ve meticulously crafted an easy-to-use, visually captivating occupancy tracker that serves as your personal compass through the seasons.

Our easy to use occupancy report template is designed as a visual heat map, segmented into 15 distinct seasonal periods. This intuitive tool allows you to quickly pinpoint any gaps in your bookings, offering you the clarity to act with precision. By identifying these gaps early, you can confidently adjust your budgets or refine your tactics to ensure your rooms are always filled with delighted guests.

You can access your free copy here: DWC Occupancy Report Template

An easy glossary of other key metrics to follow:

Occupancy reports reveal several key metrics that offer a nuanced view of a property’s performance. Key metrics in these reports usually include the occupancy rate, average daily rate (ADR), and revenue per available room (RevPAR).

  • Occupancy Rate: This fundamental measure shows the percentage of available rooms that are occupied, calculated by dividing the number of occupied rooms by the total number of available rooms.
  • Average Daily Rate (ADR): This metric indicates the average revenue earned per occupied room, derived from dividing total room revenue by the number of rooms sold.
  • Revenue per Available Room (RevPAR): Combining occupancy rate and ADR, RevPAR provides a comprehensive view of revenue performance per available room.
  • Booking Lead Time: This metric reflects how far in advance guests make reservations.
  • Cancellation Rate: This shows the proportion of bookings that are cancelled.
  • Length of Stay (LOS): This averages the number of nights guests stay.

Analysing Trends and Patterns

Analysing trends and patterns in occupancy reports is key to understanding your peak and off-peak periods, seasonal fluctuations, and booking trends. By diving into historical data, businesses can pinpoint high and low demand periods and tweak their marketing strategies accordingly.

If a hotel or holiday park consistently has low occupancy in certain weeks, promotions and budgets can be shifted to increase bookings in these areas. 

Understanding seasonal trends—whether driven by holidays, events, or weather changes—helps in planning for demand variations. Real-world examples, like using data to tackle low occupancy, show how trend analysis can lead to actionable strategies that improve occupancy rates. It’s all about staying one step ahead and keeping those rooms filled!

You can also benchmark and compare where you stand against your competition. Using comparative analysis, either through recognised providers such as McKinsey or Office for National Statistics, or tapping into your agency’s knowledge, you can understand factors affecting growth outside of your brand.  

There could have been local bad press, or a drive towards glamping over traditional hotel breaks. This analysis helps in setting realistic performance targets and spotting areas that need improvement. Using comparative analysis enables you to make data-driven decisions to stay competitive and refine your operations.

Tools and Software for Occupancy Reporting: The Technical Bit

In the world of occupancy reporting, advanced tools and software are game-changers. Leading solutions include property management systems (PMS) that integrate seamlessly with booking engines and other data sources, automating data collection and analysis. These tools offer real-time reporting, customisable dashboards, and sophisticated analytics features, making your life a lot easier. And, integrating occupancy reporting software with your PMS ensures a smooth data flow and minimises those pesky manual entry errors. 

We’ve worked with a number of booking engines and occupancy reporting tools over our tenure as the go-to hospitality consultants, and there’s a lot of options. Picking one that’s right for your business, right for your customers, and surfaces your data in a functional way can be a bit tricky, and not a one size fits all solution: 

Here are a few options and their strengths: 

  1. Cloudbeds — Best for scalability with growing hotel businesses
  2. RMS — Best for multi-property management
  3. 3Little Hotelier — Best for small hotels and inns with an intuitive design
  4. WebRezPro — Best for versatility in accommodation types
  5. Lodgify — Best for vacation rentals and B&Bs
  6. innRoad — Best for a fully integrated hotel management suite
  7.  eZee Absolute — Best for robust integrations with OTAs
  8. Sirvoy — Best for simplicity and user-friendly interface
  9. RoomRaccoon — Best for the automated upselling of extras
  10. Checkfront — Best for incorporating tour and activity booking

Takeaways Pointers:

Occupancy reports are treasure troves of actionable insights that can turbocharge your marketing strategies, pricing adjustments, and operational improvements. Here’s how to make the most of them:

  • Targeted Marketing Campaigns: Identify low occupancy periods and launch promotional offers to boost bookings.
  • Dynamic Pricing: Adjust your pricing strategies based on occupancy trends to optimise revenue. Think of it as supply and demand in action.
  • Guest Experience Enhancements: Use feedback and observed patterns to enhance the guest experience, boosting satisfaction and encouraging repeat business.