Monitoring hotel performance using occupancy time-series analysis: the concept of occupancy performance space

Abstract

Time series factor analysis is used to identify four temporal dimensions of occupancy performance in 279 English hotels over the period January 1992 to December 1994. These dimensions referred to as reference curves differentiate hotels on the basis of overall occupancy level (RC1), seasonality (RC2), long-term trend (RC3) and length of season (RC4). The reference curves are used to define the dimensions of occupancy performance space in which the 279 hotels are positioned, with the hotels differentiated by hotel situation type. It is shown that the positioning of a hotel in occupancy performance space can provide a precise and effective basis for hotel marketing.