Your average occupancy % ?
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- Location: Kent, UK
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Your average occupancy % ?
Be interested to know what average occupancy % you aim at with your cottages particularly UK based ones
The target is the minimum occupancy required to give you the optimum profit. That is going to vary widely depending on location, size of property, standard of property, target market - is it viable to be open all year, take short breaks, attract kids at school holidays etc etc.
Occupancy numbers in isolation are meaningless, if easy to see, hence the unscrupulous agencies who’ll promise to achieve 80% or better and do it by selling cheap; result - lots of wear and tear, lots more work, guests who don’t respect your property as it’s “cheap” - it’s going to end badly. With higher pricing you could achieve the same income, but at less cost therefore higher profit, at say 55% occupancy, and have a better life doing it.
If someone has a genuine and sought after USP, they’ll get high occupancy on that basis - and decent profits to go with it - lucky them! But for many owners high occupancy is often a sign of underselling, and believing in the fundamental mistake that “it’s always better to get something than nothing”.
Occupancy numbers in isolation are meaningless, if easy to see, hence the unscrupulous agencies who’ll promise to achieve 80% or better and do it by selling cheap; result - lots of wear and tear, lots more work, guests who don’t respect your property as it’s “cheap” - it’s going to end badly. With higher pricing you could achieve the same income, but at less cost therefore higher profit, at say 55% occupancy, and have a better life doing it.
If someone has a genuine and sought after USP, they’ll get high occupancy on that basis - and decent profits to go with it - lucky them! But for many owners high occupancy is often a sign of underselling, and believing in the fundamental mistake that “it’s always better to get something than nothing”.
+1greenbarn wrote:The target is the minimum occupancy required to give you the optimum profit. That is going to vary widely depending on location, size of property, standard of property, target market - is it viable to be open all year, take short breaks, attract kids at school holidays etc etc.
Occupancy numbers in isolation are meaningless, if easy to see, hence the unscrupulous agencies who’ll promise to achieve 80% or better and do it by selling cheap; result - lots of wear and tear, lots more work, guests who don’t respect your property as it’s “cheap” - it’s going to end badly. With higher pricing you could achieve the same income, but at less cost therefore higher profit, at say 55% occupancy, and have a better life doing it.
If someone has a genuine and sought after USP, they’ll get high occupancy on that basis - and decent profits to go with it - lucky them! But for many owners high occupancy is often a sign of underselling, and believing in the fundamental mistake that “it’s always better to get something than nothing”.
I have said to the bargain hunters that I'd rather leave it empty than fill at the price they were offering.
I would agree with Greenbarn, profitability is the key measure. In the winter we would rather have a smaller number of short breaks at decent rates as we are not heating it as much. This has to be balanced with the turn around costs.
We take some longer bookings out of season but I agree the wear and tear can be high and they expect a significantly lower price.
We take some longer bookings out of season but I agree the wear and tear can be high and they expect a significantly lower price.