What is "occupancy" in the context of vehicle rentals?

Occupancy in the context of vehicle rentals refers to the percentage of vehicles that are currently rented out at any given time. This metric is crucial for rental agencies as it provides insight into how effectively their fleet is being utilized. A higher occupancy rate indicates better use of the vehicles available, suggesting higher demand and potentially greater revenue for the company.

Measuring occupancy helps rental companies manage their inventory and pricing strategies. For example, if occupancy rates are low, they might consider promotions to boost rentals, while high occupancy can signal the need for expanding the fleet or adjusting pricing.

The other options, while related to vehicle rentals, do not capture the specific definition of occupancy. The total number of vehicles available for rent is simply a count of the fleet size, the total revenue generated from rentals pertains to finances rather than utilization, and the duration of vehicle rentals throughout the month relates to time management, not the percentage of vehicles in circulation.