What is occupancy rate? Occupancy rate is a key performance indicator of the hospitality industry. It is calculated by the number of occupied rooms divided by the number of available rooms that are available in a hotel.
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What is the meaning / definition of Average Rate per Guest in the hospitality industry? Total room revenue divided by the number of guests. As hotels often have double rooms, triple, quadruple or even more occupancies per room, this ratio allows an insight into exactly what rate is payed on average.
Generally, hotels charge per room rather than per person. Most hotels ask how many guests will be staying in the room because they may not allow more than the maximum occupancy of one room for multiple reasons.