Occupancy, types of

Occupancy of a hotel is comprised of walk-ins, reservations, stayovers, understays, and no-show reservations. The objective of the hotel's management is to attain 100% occupancy. Careful monitoring and tracking of the types of occupancy permits hotel management to more accurately predict occupancy and effectively use management tools such as the occupancy management formula. The front office manager can obtain the data for this formula by reviewing the property management system (PMS) reservation module, which lists the groups, corporate clients, and individual guests who have made reservations for a specific time period. Also, the front office manager can check the tourism activity in the area, business events planned in other hotels, and other special events happening locally.

The occupancy management formula includes confirmed reservations, guaranteed reservations, no-show factor for these two types of reservations, predicted stayovers, predicted understays, and predicted walk-ins to determine the number of additional room reservations need to achieve 100% occupancy. The calculation: (total number of rooms available) (confirmed reservations) (no-show factor) (guaranteed reservations) (no-show factor) (predicted stayovers) (predicted understays) (predicted walk-ins) gives the number of additional room reservations needed to achieve 100% occupancy.

Occupancy costs

Occupancy costs include all the costs of occupying a physical area. For many foodservice establishments, the most significant cost is rent. If a food-service operation owns its...