Why it’s important
Occupancy Percentage measures the number of occupied or rented rooms, beds, flats or properties relative to the total number of available for each. As a result it is an effective means of measuring how efficiently the resources available to the company are being utilised. A low Occupancy Percentage may indicate that the business is struggling to attract customers and needs to consider alternative ways of marketing itself. Whilst a high percentage can vindicate a particular strategic approach. In the context of a Healthcare or a Care Home provider, a high percentage can be both a positive and a negative. Although a sign of maximised efficiency, at capacity the business may be unable to service additional clients until a vacancy becomes available.
How to create it
To calculate Occupancy Percentage, you’ll need to know:
- The number of Occupied rooms
- The total number of rooms
Both values are non-financial variables which would have to be imported into FUTRLI via CSV.
Once you’ve imported your data, you can calculate Occupancy Percentage by dividing the total number of rooms by the number of occupied rooms.