Nowadays it is very important to make a study of the occupancy rate of your property to take measures. Knowing at what times of the year we can increase the prices seems necessary in a sector in which competitors doesn´t stop growing.
The competitors are going to give us, in one way or another, some indicative data on how good or how bad we are doing. To better understand the concept, next, we will see its definition, how it is calculated, invoices that influence and finally, we will give you some tips to increase it.
WHAT IS THE OCCUPATION RATE?
In the hotel sector, occupancy rate is defined as the number of rooms reserved over the total number of rooms. In our case, we focus this concept on vacation rental, so this concept would refer to the number of days, weeks or months that you have the property reserved by guests.
This data may vary, having a weekend occupancy rate of 70% and midweek of 40%. Constantly observing the evolution of these levels is necessary, since in this way measures can be taken in the event of not obtaining the expected data, which are always the ones that will provide us with the highest profitability.
HOW IS IT CALCULATED?
Calculating the occupancy rate is as easy as making a rule of 3.
You have a property and it has been reserved for you for 220 days in the past year. We obtain an occupancy level of 60% per year.
Another way to calculate it is to extrapolate it to months. Last January you have reserved your home for a total of 16 days, obtaining an occupancy of 53%.
There are countless ways to calculate it, but keep in mind that the best indicators are the annual, monthly, high season months and low season months.
There are countless factors that influence the variation in occupation. Many times they influence a series of more or less controllable external factors, but they also influence the decisions made by the owner or the manager.
Uncontrollable external factors may include adverse weather conditions, such as a hurricane. It may also be that in the socio-economic sphere there is a crisis affecting the purchasing power of potential tourists, thus reducing their ability to travel and book with you.
Controllable external factors are competitors and the way they act. We can anticipate them by studying how they operate, taking a strategy that allows us to offer better prices than they do.
In the controllable factors, there are all those measures or decisions that the owner or manager can take and that directly affect the occupancy rate.
OPTIMAL OCCUPATION RATE
As we have just seen, there are many factors that influence our data vary. Therefore, we have to be aware that our occupation may rise or fall depending on the time of year, season, climate, socioeconomic factors, etc.
However, it is recommended to try to maintain an average annual occupancy of 60% on the property, an amount that will allow you, if you have an adequate pricing policy, to obtain enough benefits.
TIPS TO INCREASE THE OCCUPATION RATE
It is obvious that the longer you reserve your property, the more benefits you will obtain. At Hosticasa we are aware of this statement and we want the best for you, owners, so we have created a small list of tips, beyond basic and essential things such as price, product or cleaning, with which the emoluments received.
USE EVENTS IN YOUR FAVOR
There are massive events that are repeated every year on the same dates. To face these phenomena, you have to be proactive and know that, during certain periods, the demand will increase dramatically. Given this, you can generate marketing campaigns aimed at people who will attend a certain event.
A clear example is the Gay Pride in Maspalomas, in Gran Canaria. Every year there are many people who come to this event. Promote yourself based on these types of visitors well in advance to ensure reservations.
SEGMENT YOUR MARKET
Imagine for a moment that you have a vacation home on the beach. Who are you addressing? Families? Surfers? You need to be clear about who you are going to contact to offer a product as close as possible to know how the tourist´s profile is looking like.
For example, if you are going to surf, you could include two free days of board rental, set the property with surf themes or any measure that differentiates you from other properties that attack the same niche and that makes you prefer to you above them. In this way, your occupancy rate will be increased considerably.
OFFER PACKAGES AND PROMOTIONS
Include extras, packages, promotions, anything that catches the consumer’s attention. A welcome kit, an organized excursion, discounts for spending a minimum of nights, discounts for spending a whole month … Any economically viable measure that you can think of and that can call the customer to the action of booking with you is good.
PLAY WITH THE PRICE
We always advise that not to kept at a fixed price. It is convenient, depending on the season we are in, to raise or lower the price based on the demand we have.
For example, in high season, the willingness to pay 100 Euros per night is greater than paying it in low season, where there are many more homes to choose from.
In short, from Hosticasa we recommend doing a study on the occupancy rate and taking measures to increase it, since the higher the occupation, the greater the benefit. Our company is a specialist in the management of holiday rentals in the Canary Islands and we offer a comprehensive service in which we position properties on busy platforms such as Airbnb. Do not hesitate to visit our website to see all our services! Don’t miss our web app!