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When i was working on sample question which is available on acca website, I am not able to understand part of an answer in the mark scheme.
Here is the part of the answer I cant understand:
Although there is not the data to
calculate the contribution per guest per week, the higher level of guest occupancy level
in 20X7 (both budgeted and actual) is a positive indication. Hammocks’ occupancy level
per room was 81% compared to the competitor’s 77% (all based on double occupancy)
indicating that performance is good.Suppose a hotel has 100 rooms.
Obviously the ideal would be to have all 100 rooms having people staying in them every night because that would earn them more money.
However that is not going to happen, but the more rooms that are filled on average the better.
The occupancy rate is the average number of rooms filled during the year. So 81% occupancy means that if they have 100 rooms, then on average 81 of them are filled per night during the year (which is better than if only 77 were filled 🙂 ).
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