A short YouTube commentary arguing that lowering occupancy while raising average daily rate (ADR) can keep revenue equal or higher while reducing guest presence and property wear-and-tear. The speaker contrasts high-occupancy/low-ADR vs low-occupancy/high-ADR strategies and recommends reducing occupancy and increasing rates when feasible to lessen operational burden.
You can have a really high occupancy and a little bit lower adr so you're making less money but your people are in there all the time. Or you can have a lower occupancy and a higher ADR average daily rate for those of you that aren't aware and see how that juxtaposition changes where that like gray area is the amount of work you may or may not have to be putting back in based on that additional wear and tear. So so you're making the same amount of money essentially or maybe even a little bit more money by having that lower occupancy or the higher occupancy. I guess it depends on your situation. But if you're able to reduce the occupancy and raise the rate, why wouldn't you do that? You're going to make the same amount of money but have people in there less, less amounts of time and you know, it just is less, less usage of the items within the property and the property itself.
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