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Revenue
Occupancy gap
The occupancy gap is the difference between a property's occupancy and the realistic benchmark for comparable properties in the same market and season, expressed in nights or as a percentage of available nights.
How Occupancy gap is calculated
Occupancy gap (nights) = (Benchmark occupancy % − Actual occupancy %) × Nights available
Why Occupancy gap matters for your revenue
Expressing underperformance in unsold nights, then multiplying by ADR, converts a vague concern into an annual figure. That figure is usually what justifies changing pricing, photography or channel strategy.
Related terms
- Occupancy rateOccupancy 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.
- RevPANRevenue Per Available Night is the short-term rental equivalent of RevPAR, applied to a whole property rather than a hotel room. It divides total booking revenue by every night the property was available in the period, including nights blocked for maintenance only if they were bookable.
- Gap nightA gap night is an unsold night sitting between two confirmed bookings. It is usually created by minimum-stay rules that prevent a guest from booking the short window, rather than by an absence of demand for that date.
- Revenue managementRevenue management is the discipline of selling the right night, at the right price, through the right channel, to maximise total income over a period. It combines pricing, stay restrictions, channel strategy and forecasting rather than treating rate alone.
Revenue Management at Pinnacle Path
Occupancy gap sits inside our revenue management work. See how we apply it market by market.