Occupancy rate of the hotel industry worldwide from 2008 to 2016, by region
source from: Statista.com
Occupancy rate of hotels in the Asia Pacific region
This statistic shows the occupancy rate of the hotel industry worldwide from 2008 to 2016, by region.
In 2016, the occupancy rate of hotels in the Asia Pacific region was 69 percent.
For every Hoteliers regardless of its scale/region of operations, having visibility into Occupancy is critical.
How to measure a hotel’s performance
One of the key measure is to track Occupancy, is Occupancy %, which is calculated as below:
Hoteliers are planning for their rooms sold across various segments, considering the promotions with various business partners for their Business & leisure segments.
With historical trends as basis, Sales of room nights is planned in a bottom up manner for various Hotels for Business and Leisure Segment to arrive at Grand Room Night sold as follows:
As above results are presented to Management, they would want to increase the Occupancy %.
Let’s take for example the Target Occupancy % which Management would like to attain is 90%. Using this target Occupancy % as the goal, we would then recalculate the room nights to be sold to achieve this, using following computation:
We would now need a visibility in the difference of expectations against the original plan as depicted below:
Imagine having an ability to execute each of above tasks from a single screen illustrated as below:
For Hoteliers still, doing Planning using spreadsheets or legacy systems which are hard wired to adapt in the digital world, there is good news.
Our Hotel Budgeting App is now available on Anaplan’s application Hub with a built in Occupancy % & Dynamic pricing modelling scenarios.
Take a look: https://apphub.anaplan.com/business-planning-for-hotels-and-casinos.html
Click here to contact us or request for a demo.