What is Occupancy Rate?

Occupancy rate measures how full your classes are: (number of enrolled children / total available spaces) x 100. If you have a class with a capacity of 15 and 12 children are enrolled, your occupancy rate is 80%. Tracking occupancy across all your classes gives you a clear picture of how effectively you are using your capacity and where there are opportunities to grow revenue.

Industry benchmarks suggest that a healthy average occupancy rate for a children's activity business is 80-90%. Below 75%, you may not be generating enough revenue per class to cover your costs (particularly venue hire, which is typically your largest fixed cost). Above 95%, you are likely turning away potential customers and should consider opening additional classes. The sweet spot of 85-90% provides strong revenue while allowing enough flexibility for trial sessions, make-up classes, and waiting list activation.

Occupancy rate should be tracked at multiple levels: per class, per venue, per day of the week, per time slot, and per age group. This granular view reveals patterns that an overall average would hide. You might have Monday classes at 95% and Wednesday classes at 65%, or baby classes bursting while school-age classes have spaces. Use this data to make informed decisions about timetable changes, marketing focus, pricing adjustments, and venue capacity.