What is a hotel occupancy rate (OCC) and how to increase it?


The hotel industry is always looking for ways to increase occupancy rates and maximize profits. One of the key metrics they track, next to ADR, is the hotel occupancy rate or OCC. So let’s take a look at what the OCC is and how hotels can increase it. 

So what is the occupancy rate?

The hotel occupancy rate is simply the percentage of rooms occupied at any given time. It’s important to track because it provides insight into how well a hotel performs. A high occupancy rate means that rooms are being occupied at a high rate. A low occupancy rate means that there are far too many empty rooms at any given time, indicating that something may be wrong with the hotel and room availability needs to be increased. 

As a rule of thumb in the hospitality industry, a good OCC is 80% or above. If it’s below that number, then the hotel needs to look at ways to increase room availability. 

How to calculate a hotel occupancy rate?

The hotel occupancy rate is calculated by dividing the number of occupied rooms at any given time by the total number of available rooms. For example, if there are 100 rooms and 25 are occupied, then the hotel’s occupancy rate would be 25%.

The formula for calculating the OCC is

OCC = Rooms occupied / Rooms available

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How to increase a hotel occupancy rate?

Let’s take a look at 5 tips and tricks that can help you boost bookings and fill up your rooms.

  • Offer special deals and promotions to get new customers in the door as well as get repeat bookings. For example, a special deal could include a meal at the hotel’s restaurant, a spa treatment, or a discount for booking the next stay.
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  • Make sure your property and its amenities are clearly listed on websites such as TripAdvisor and Expedia. More than 70% of hotel customers research online before booking their stay. 
  • Update your social media profiles regularly. Customers appreciate the opportunity to see what’s happening at your hotel – whether it’s special events or just updated amenities – through Facebook and Instagram. And be sure to add photos of the rooms, bathrooms, and other common areas in your hotel.
  • Offer special discounts and rates for group bookings. Not only will this increase your occupancy rate, but it will also help you earn more money through higher room rates. 
  • Rent out your facilities. Local businesses are always in need of a bigger space, for conferences, work events, networking, or parties. Also, those conference guests most likely will even stay at your hotel, especially if it lasts for several days. This is a great way to increase your mid-week revenue. 

Occupancy rate is one of the most important metrics in the hospitality industry to determine a hotel’s performance. And we are always looking for ways to increase it! So consider these tips and Book a Demo with us to discuss how DigitalGuest can help you maximize your profits!

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