← Glossary
Occupancy Rate
Occupancy rate is the percentage of available rooms sold for a given period. It is the demand-side counterpart to ADR in the RevPAR equation.
Formula
Occupancy Rate = (Rooms Sold ÷ Rooms Available) × 100
Why it matters
Occupancy targets are a trap if pursued in isolation. Filling rooms at any price destroys ADR. The right approach is yield management — finding the price that maximizes RevPAR, not the price that maximizes occupancy.
See Occupancy Rate in action.
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