Seasonal Occupancy Break-Even Tool
Calculate the minimum occupancy rate your resort needs to achieve during a specific season to cover all its costs. This tool is essential for setting strategic pricing and revenue goals for different times of the year.
Establish clear, data-driven occupancy targets for peak, shoulder, and off-seasons.
Understand how changes in your ADR will raise or lower your break-even point.
Assess the viability of staying open or adjusting services during low-demand periods.
Results
Enter values and click Calculate to see results
Understanding Seasonal Break-Even
A break-even analysis identifies the point at which your total revenue equals your total costs. For seasonal businesses like resorts, it's crucial to calculate this for different periods of the year (e.g., summer vs. winter) because both costs and revenues can change dramatically.
The key is to separate your costs into two categories: fixed costs (e.g., salaries, insurance, property taxes) that you pay regardless of occupancy, and variable costs (e.g., housekeeping supplies, room-specific energy use, welcome amenities) that you only incur when a room is sold. By knowing the break-even occupancy for each season, you can make smarter decisions about staffing, marketing spend, and pricing.
Frequently Asked Questions
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