31.23% occupancy, OH NO!!??, yeah right!

[Nathan M kiefer]

I wanted to post about occupancy, I know there is a wide variety of occupancy levels and ADR information out there but wanted to share mine and hear what others are doing.

Seems there are several schools of thought - drop your rates and high occupancy or high rates low occupancy.

We have 29.9% occupancy and an ADR of $633 per night. Did right around 138k in two houses on 218 nights on two side by side houses combined.

Our thought process is we would rather have a high ADR and lower occupancy than be 90% with higher use and damages. 

A lot of great investors on here and interested to hear your thoughts specifically as to ADR's and occupancy as well as philosophy on occupancy rate.

Can share my listings if needed

[John Underwood]

It sounds like the way you are doing it is working well for you.

It also sounds like you have some room for improvement. 

I would keep your peak season pricing the same and look at improving the rest of the year by decreasing pricing some until your occupancy rate ticks up a little. Weekends should still be higher than week days.

Maybe offer off-season specials like book 2 days and get a 3rd day free? Heavier weekly discounts for off-season, etc. 

I wouldn't discount so much that you end up getting people who won't respect your property.