Accommodation occupancy

Understand the idea

The denominator matters. A hotel with 100 rooms available for 30 nights offers 3,000 room-nights. Rooms out of service can change available capacity under the reporting method. An occupancy increase can result from more room use, less available capacity, or both. Seasonal changes and differences between weekday and weekend demand can also affect comparisons.

An example

If the hypothetical hotel sells 2,100 of its 3,000 available room-nights, occupancy is 2,100 ÷ 3,000 = 70%. If it receives 420,000 in room revenue, its average revenue per sold room-night is 200, while revenue per available room-night is 140. These related measures answer different questions. The example omits taxes, packages, other revenue and costs.

Sources

• Australian Bureau of Statistics: Room occupancy, available and occupied nights

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