FO Formula – Hotel Occupancy Percentage | Occupancy Ratio Calculation
The FO Formula, also known as the Front Office Formula, is a simple calculation used in the hotel industry to determine the occupancy percentage of a hotel. This formula takes into account the number of rooms sold and the total number of rooms available in the hotel. By using this formula, hotel managers can determine the occupancy rate of their hotel, which is an important metric for measuring the success of their business.
To calculate the hotel occupancy percentage using the FO Formula, simply divide the number of rooms sold by the total number of rooms available, and then multiply the result by 100. For example, if a hotel has 100 rooms and 80 of them were sold on a particular night, the occupancy percentage would be calculated as follows:
Occupancy PercentageOccupancy Percentage is the most commonly used operating ratio in the hotel front office; The Occupa... = (80 / 100) x 100 = 80%
This means that on that particular night, the hotel was 80% occupied. The FO Formula can be used on a daily, weekly, or monthly basis to track the occupancy rate of a hotel and to make informed decisions about pricing, staffing, and other important aspects of hotel management.
Overall, the FO Formula is a valuable tool for hotel managers who want to keep track of their occupancy rates and make data-driven decisions to improve their business.
OccupancyThe number of rooms sold to the total. Percentage is the most commonly used operating ratio in the hotel front office, The Occupancy percentage indicates the proportion of rooms either sold or occupied to the number of rooms available for the selected date or period.
The Formula for Occupancy Percentage:
Occupancy Percentage= (Number of Rooms OccupiedA room status term indicating that a guest is currently registered to the room.) / (Total Number of Rooms Available for sale) * 100
There are generally two ways used to calculate the occupancy percentage in the hotel, one by the number of Rooms Occupied and another by the Rooms Sold (Rooms Sold = Occupied rooms – ComplimentaryA complimentary or 'comp' room is an occupied room for which the guest is not charged. A hotel may o... and House use)
HotelA Hotel or Inn may be defined as an establishment whose primary business is providing lodging facili... Occupancy Percentage Calculator
Also at some hotel Available Rooms are taken after reducing the OOOOut-of-order: The room cannot be assigned to a guest. A room may be out-of-order for a variety of re... (Out of Order Rooms) ie Sellable Rooms = Available Rooms – Out Of Order Rooms. Other hotels always take all rooms in their hotel as Available Rooms because this gives a consistent base on which the occupancy is measured.
1) Example Occupancy Percentage Calculation (Based on Rooms Occupied)
Total Number of Rooms Available in the hotel = 215
Number of Rooms Occupied on 10th September 2017 = 207
Hotel’s Occupancy Percentage = 207 / 215 *100
= 96.28 %
2) Example Occupancy Percentage Calculation (Based on Rooms Sold)
Total Number of Rooms Available in the hotel = 215
Number of Rooms Occupied on 10th September 2017 = 207
Total House Use and Complimentary Rooms = 2
Hotel’s Occupancy Percentage = (207 – 2) / 215 *100
= 95.34 %
3) Example Occupancy Percentage Calculation (Based on Available Rooms)
Total Number of Rooms in the hotel = 215
Number of Rooms Occupied on 10th September 2017 = 207
Hotel’s Occupancy Percentage = 207 / 215 *100
= 96.28 %
4) Example Occupancy Percentage Calculation (Based on Sellable Rooms)
Total Number of Rooms Available in the hotel = 215
Number of Rooms Occupied on 10th September 2017 = 207
Total Out of Order (OOO) Rooms = 5
Hotel’s Occupancy Percentage = 207 / (215 – 5) *100
= 98.57 %
