80% occupancy, less profit: why fill rate is the wrong number to chase

Two months, one property, an uncomfortable result

October at Clamp Farm Barn: £700 a night, 60% occupancy, three to four longer stays, £2,000 profit. May: 80% occupancy, eight changeovers, £1,500 profit. Twenty points more occupancy, less money.

That's not a rounding error. Eight changeovers at £350 each is £2,800 straight off the top before any other operating cost. The dashboard said May was the better month. The bank account disagreed.

Profit per booking is the number that matters

Platforms optimise for fill rate, and so does most advice, because occupancy is the headline number that feels like success. But a booking is only worth taking if it's margin-positive after its share of changeover and running costs.

Once we had our cost per changeover, the logic changed: weekday rates went up, minimum stays got longer in peak months, and we stopped celebrating a packed calendar. Fewer, longer stays at a higher nightly rate consistently outperform a busy one in the same month.

Three things we've found true: know your cost per changeover before setting any rate; fewer longer stays can beat a packed calendar; and if your platform is optimising for fill rate, it may be optimising against your margin without either of you realising.