Gatavia
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GATAVIA · PRICE AND OCCUPANCY

You do not need more occupancy. You need to know how much profit bad pricing is leaving on the table.

Higher prices can produce more profit with fewer booked nights. Discounts can fill the calendar and destroy margin. Gatavia separates revenue, occupancy and profit.

Discounting to fill gaps without knowing how many extra nights are required.
Being afraid to raise price because you do not know the occupancy threshold.
Optimising revenue instead of actual profit.
Solution: Enter your real economics and, optionally, your own demand-response assumption. Gatavia calculates the price–occupancy frontier and full price × occupancy profit map without pretending to know market demand.

Your current economics

How you think demand responds

You provide the assumption and Gatavia tests whether the economics hold.

GATAVIA ANSWER
Current annual profit
€22,463
Current revenue
€40,953
Revenue per available night
€112
Profit per available night
€62
Net margin
54.9%

How much occupancy can you lose after raising price?

If price rises 10%, occupancy can fall by up to 7.8 points and you still earn at least the same profit. The threshold is 60.2% occupancy.

How much occupancy must a discount buy?

If price falls 10%, you need at least 10.1 additional occupancy points, about 37 extra nights per year, to avoid earning less than today.

Best move under YOUR demand assumption

+30% moves the average nightly rate to €215, with estimated occupancy of 56.0%. Under your assumption, annual profit improves by €3,844.

Your price and occupancy frontier
Average nightly rate needed to hit target profit
€153
Occupancy needed to hit target profit
61.7%
Maximum theoretical discount at 100% occupancy
28.2%
Approximate contribution per occupied night before fixed costs
€107

Do not optimise occupancy. Optimise profit.

This table applies your sensitivity assumption to six price moves.

Price move
Estimated occupancy
Revenue
Profit
vs now
-20%
78.0%
€37,580
€18,445
-€4,018
-10%
73.0%
€39,568
€20,708
-€1,754
0%
68.0%
€40,953
€22,463
+€0
+10%
64.0%
€42,398
€24,151
+€1,689
+20%
60.0%
€43,362
€25,433
+€2,970
+30%
56.0%
€43,844
€26,307
+€3,844
Best scenario

Price × occupancy economic map

Each cell shows the annual profit for that price and occupancy combination.

Occupancy move-20%-10%0%+10%+20%+30%
+20 pts
€21,348
-€1,115
€25,827
+€3,364
€30,305
+€7,842
€34,783
+€12,320
€39,262
+€16,799
€43,740
+€21,277
+10 pts
€18,445
-€4,018
€22,414
-€48
€26,384
+€3,921
€30,353
+€7,890
€34,323
+€11,860
€38,292
+€15,829
0 pts
€15,542
-€6,921
€19,002
-€3,461
€22,463
+€0
€25,923
+€3,461
€29,384
+€6,921
€32,844
+€10,382
-10 pts
€12,639
-€9,824
€15,590
-€6,873
€18,542
-€3,921
€21,493
-€969
€24,445
+€1,982
€27,397
+€4,934
-20 pts
€9,735
-€12,727
€12,178
-€10,285
€14,621
-€7,842
€17,064
-€5,399
€19,506
-€2,957
€21,949
-€514
How we calculate it

Profit = average nightly rate × occupied nights − fees − variable costs − turnovers − fixed costs.

Without market data or an observed demand curve, no formula can know your true optimal price.

FAQ

Does Gatavia predict demand?

No. Without market data or an observed demand curve that would not be rigorous.

What does it show for a price increase?

The minimum occupancy required to preserve current or target profit.

What about a discount?

The extra occupancy and booked nights required for the discount not to reduce profit.

Does it optimise revenue?

It shows revenue, but the main recommendation is based on profit after real costs.