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Your average occupancy % ?

 
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MockettsFarm



Joined: 30 May 2013
Posts: 34
Location: Kent, UK

PostPosted: Mon Nov 18, 2019 10:22 pm    Post subject: Your average occupancy % ? Reply with quote

Be interested to know what average occupancy % you aim at with your cottages particularly UK based ones
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greenbarn



Joined: 30 May 2009
Posts: 6127
Location: The Westmorland Dales, Cumbria

PostPosted: Tue Nov 19, 2019 10:22 am    Post subject: Reply with quote

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”.
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Cymraes



Joined: 07 Jul 2015
Posts: 479
Location: North Wales

PostPosted: Tue Nov 19, 2019 10:39 am    Post subject: Reply with quote

greenbarn 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”.


+1

I have said to the bargain hunters that I'd rather leave it empty than fill at the price they were offering.
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Joanna



Joined: 23 Aug 2007
Posts: 992
Location: Chester, North West England & Sidmouth, East Devon

PostPosted: Tue Nov 19, 2019 2:23 pm    Post subject: Reply with quote

+1
We don't have any occupancy target, other than getting at least enough nights booked for it to count as a business to HMRC. We do have a profit target, although whether we manage to meet it is a whole other story.
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Jo

Joint owner of Baker's Cottage in Chester & Chandler's Cottage in Sidmouth
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ianh100



Joined: 10 Jan 2013
Posts: 580
Location: Sherborne Dorset

PostPosted: Thu Nov 21, 2019 6:54 pm    Post subject: Reply with quote

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.
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rosebud



Joined: 14 Mar 2012
Posts: 623
Location: Steyning, West Sussex

PostPosted: Sat Nov 23, 2019 2:42 pm    Post subject: Reply with quote

Also agree.. Profitability is the key rather than occupancy..

In the last 3 years I have had between 35 and 39 weeks booked.
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