What is the difference between Utilisation and Occupancy?

In the world of estate planning, building management, and workplace optimisation, the terms utilisation and occupancy are frequently used. Although they are closely related, they describe fundamentally different aspects of space usage. Understanding this distinction helps organisations make better decisions regarding efficiency, space layout, and user comfort.

Occupancy

Occupancy describes how often a space is used over a certain period. It's not about the number of people in the space, but about the time use of the space itself.

The associated term occupancy rate is usually expressed as a percentage. This indicates how much of the time a space is actually in use. For example:

A meeting room with an occupancy rate of 80% means that it is occupied 80% of the time—regardless of whether there are 2 or 8 people in it.

Utilisation

Utilisation, on the other hand, provides insight into the number of people present in a space at a given moment. This reflects the current occupancy of available workstations or seats.

The associated utilisation rate is calculated by dividing the number of people in a space by the number of available spots. This is also expressed as a percentage.

For example, as seen in the infographic below: In a meeting room with 8 chairs, 4 chairs are occupied at a given moment. The utilisation rate is then 4/8 = 50%.

In summary:

Value for Estate Planning & Facility Management

Insight into occupancy and utilisation offers organisations tangible benefits:

• Efficiency & cost savings: by identifying underuse, you can optimise spaces and reduce energy and maintenance costs TU Delft Research Portal+1.

• Healthier & more sustainable buildings: seal unused spaces, adjust systems based on actual occupancy—good for the environment and comfort relogix.com.

• Improved user experience: insight helps design spaces that truly match work behaviour, such as more quiet workspaces or breakout areas CapellaHubstar.

• Strategic planning: utilisation data enables informed decisions, such as subleasing or reconfiguration of office floors Hubstar.

How do you measure Utilisation and Occupancy Rate?

There are multiple ways to gain insight into how a building and available spaces are actually used. Below is an overview of the five most commonly applied methods to measure utilisation and occupancy—each with its own advantages and disadvantages.

1. Manual Counting

• Advantage: Easy to start, no technology or investment required.

• Disadvantage: Low accuracy, labor-intensive and only snapshots. Not suitable for continuous monitoring.

• Application: Mainly useful for small spaces or short-term observations.

2. Wi-Fi / BLE Tracking

• Advantage: Smart use of existing network infrastructure such as Wi-Fi routers or BLE beacons. Scalable, affordable, and quick to implement.

• Disadvantage: Dependent on personal devices. One person can carry multiple devices, leading to inaccuracies.
  ➤ Note: Modern AI and machine learning technologies can recognise the difference between people and devices, making this method significantly more reliable.

3. Sensors (Motion, PIR, IR, Headcount)

• Advantage: Real-time detection, high accuracy and completely privacy-friendly as no image material is used.

• Disadvantage: Requires investment in installation, maintenance and calibration. Sometimes dependent on battery replacement or mains power.

4. TOF Sensors (Time-of-Flight)

• Advantage: Very high accuracy in counting people, without using cameras. Ideal for privacy-sensitive environments.

• Disadvantage: Only recognises how many people are in a space, but not who or what behaviour is exhibited.

5. Digital Methods

• Think of workplace reservation systems, meeting room planning and digital visitor registration.

• Advantage: Valuable data without extra hardware. Well integrated with other tools.

• Disadvantage: Only effective if employees consistently use and register in systems.

Comparison Table: Pros and Cons per Measurement Method

Ensuring Data and Organisational Prerequisites

Measuring utilisation and occupancy provides valuable insights—but without proper data assurance and internal strategies, it remains sporadic measurements without lasting impact. Organisations must therefore carefully consider the following prerequisites:

• Data Ownership
  Ensure that your organisation always retains ownership of the collected data. Avoid vendor lock-in and choose open and transparent systems that enable integration with existing IT structures.

• Analytics & Data Science Capacity
  Insight without interpretation is worthless. Build internal knowledge by involving analytics specialists and data scientists in analysing occupancy data. This will translate data into dashboards, trend analyses and action-oriented KPIs.

• Future-Proof with AI
  New AI applications such as heatmaps, space usage predictions and automatic space offerings can add immense value. (Also check out our blog on AI & building management for more on this.)

• UX & Awareness
  The user experience of dashboards and reports is crucial. If information is presented in an understandable and visually appealing way, it encourages conscious behaviour and organisational change.

Conclusion: From Measuring to Improving

Measuring utilisation and occupancy is not an end in itself but a means to make workplaces smarter, healthier and more sustainable. By investing in measurement solutions, data ownership and internal data expertise, you prepare your organisation for the future.

✅ Want to know more?

Check out our other blogs or contact our team. We are happy to think about the best solution for your organisation.