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Revenue
Occupancy rate
Occupancy rate is the share of available nights that were booked in a period, expressed as a percentage. Nights the owner blocked for personal use are normally excluded from the available count, so the figure reflects commercial performance rather than calendar availability.
How Occupancy rate is calculated
Occupancy rate = (Nights sold ÷ Nights available) × 100
Why Occupancy rate matters for your revenue
Occupancy on its own can mislead — it is trivially raised by cutting prices. Read alongside ADR, it shows whether the calendar is filling because demand is strong or because the listing is underpriced.
Related terms
- ADRAverage Daily Rate is the average price paid per booked night over a period. It is calculated from room revenue divided by the number of nights actually sold, so it describes the rate guests paid rather than the rate advertised, and it ignores nights that stayed empty.
- RevPARRevenue Per Available Room measures revenue earned for every night the property was available to book, whether or not it sold. It combines rate and occupancy into one figure, which makes it the standard way to compare performance between periods, properties or markets.
- Compression nightA compression night is a date when city-wide accommodation supply is close to sold out, usually because of a major event, conference, holiday or festival. Prices across the whole market rise sharply as remaining inventory becomes scarce.
- SeasonalitySeasonality is the repeating annual pattern of demand in a market, driven by climate, school holidays, religious calendars, events and travel habits. It determines which months command premium rates, which sustain steady occupancy and which need active demand generation.
Revenue Management at Pinnacle Path
Occupancy rate sits inside our revenue management work. See how we apply it market by market.