The occupancy rate is one of the main indicators in means of accommodation as it shows the manager the potential for sales of their lodgings. When crossing the occupancy rates with the average booking ticket it is possible to get a good idea if your business is being profitable, for example.
The rate calculation is based on your total reservations made divided by the number of lodgings available for rent during your search period.
You have 30 lodgings in your business, but only 20 are available at any one time. In this period 10 lodgings were reserved.
10 booked lodgings / 20 available lodgings = occupancy rate of 50%.
It is an indicator that the higher it is, the better for your business, as long as your average ticket is also at a good level.
As it is influenced not only by demand for your products, but also by topics such as the economy, public safety and other macro-environmental factors, the ideal is to always map the average occupancy rate in your region to know how your performance is doing.