Use the same basis
Do not mix units, rooms and nights in one calculation. Hotels often use room-nights; rentals may use units over a period.
Example
If 85 of 100 available room-nights are occupied, the occupancy rate is 85% and the vacancy rate is 15%.
How to interpret it
Higher occupancy usually means stronger utilization, but it does not always mean higher profit. Revenue per unit, operating cost and pricing still matter.
Common mistakes
Do not compare daily occupancy with monthly occupancy unless the periods are aligned. Seasonal businesses should compare like-for-like periods.
Last reviewed: 2026-05-17