double occupancy factor

Definition of double occupancy factor and synoysm

The explanation of the term is actually very simple: The factor indicates the proportion of rooms sold by double occupancy. To do this, divide the number of overnight stays (i.e. the number of occupied beds) by the number of occupied rooms. It therefore indicates how many people stay in the occupied rooms.

The double occupancy rate is also known as a synonym (as a percentage ratio).

‍

Influence and areas of application of the double occupancy factor

The double occupancy factor has an impact on turnover when a hotel has different instalments calculated for single, double or multi-bed occupancy of the rooms.

The demand for additional offers in the restaurant, in the bar or when using wellness areas is also changing.

Energy costs in general or, for example, laundry costs in particular change due to the level of double occupancy and thus the number of guests in the hotel.

As a result, this factor must also be used, for example, in feasibility analyses. If you create an analysis for a business hotel, business travelers are therefore the main target group, a factor of 1.2 is chosen. This means that only 20% of the rooms sold are double occupied, as more single rooms are usually booked in this hotel.

The double occupancy factor is also relevant for calculating the contribution margin in the hotel industry. An average value is usually used here.

‍

Different segments and what does corona have to do with the factor?

From the above, you could already deduce that business hotels generally have the lowest double occupancy factor, followed by city hotels. In spa hotels, the factor is usually around 1.5. The highest score is achieved in holiday hotels — depending on the type of room (and location of the hotel), the value is between 1.8 and 2.5.

Corona had and still has very bitter consequences for all hotels in some cases. However, there have also been cases in which hotels with large conference facilities have balanced out their summer slump of recent years with family or group trips. As a result, the average length of stay was extended for some. The double occupancy factor has also increased by 20-30% in some cases.

‍