Occupancy rates

[BVC]

Hello, I have been looking through the various posts and there seems to be quite a discrepancy between what people consider to be good occupancy rates. Obviously there is a difference between self-catering and B&B. I have two self-catering cottages and reckon to take between thirty-six and forty bookings a year in each. I like to have a break in the new year to catch up on decorating and repairs etc. I would love to know what others expect in a year. Any chance of posting a survey on the site? BVC

[Jules]

Hi,

I think you would get such a discrepancy between responses that I'm not sure how useful the survey would be.

Occupancy levels are down to many factors, not least the location of the cottage, the quality of the cottage and how well marketed the cottage is. For example, I have several luxury holiday cottages in a beautiful village on the coast in Northumberland - which is a popular location, probably the most picturesque village in the county and has lots to offer the visitor - shops art galleries, pubs, restaurants, beach, castle, etc. They are top quality and I market them well, so they book right through the year, with lots of repeat bookings, with most achieving a minimum of 50 weeks occupancy (got to keep 1 - 2 weeks free for re-decorating etc.).

However, I know of similar cottages in the same village, in the same street even, with the same to offer their guests that only achieve around 24-28 weeks a year because they are poorly marketed. I also have a friend who has the most sensational luxury holiday let in a converted watermill in Cumbria with its own waterfall and fabulously designed, but apart from the waterfall, the location is nothing special and is miles from the nearest shop and pub, so even with some fantastic PR and features in the Times, etc., they struggle to achieve 25 weeks a year.

Coquet Cottages (http://www.coquetcottages.co.uk)

[Raincliffe1]

I can only speak from a serviced accommodation point of view but I remember a few years ago reading somewhere that 70% occupancy is the benchmark. Two years ago I worked out our occupancy and we achieved 68% over 9 months but we were closed from mid Nov to mid Feb (3 months) for rewiring and a new roof so the annual occupancy was quite a bit less I think. Personally if you manage to let your accommodation for 50% of the time that is quite a good achievement in this climate I reckon.

I think you will never get accurate information on occupancy rates in businesses where there is a significant proportion of cash sales for obvious reasons.

[sagefarm]

There are also tax reasons why many self catering cottages are only let for 26 weeks of the year.

[Raincliffe1]

There are also tax reasons why many self catering cottages are only let for 26 weeks of the year.

I guess it is something to do with qualifying for reductions in business rates payable.

Katherine