How to increase occupancy without automatically dropping fees

A fee reduction can increase enquiries, but it also reduces revenue from every discounted booking and can be difficult to unwind. Before changing price, identify why the place is empty.

If families do not know the vacancy exists, improve visibility. Publish the exact age group, available days and likely start date, and keep the information current on your website, Google Business Profile and StartingBlocks.gov.au.

If families are enquiring but not progressing, examine the service experience rather than assuming the fee is the only issue. Review response quality, tour availability, fee explanations, inclusions, quality information and follow-up.

If the pattern is the problem, test operational options. A Monday-only place is not interchangeable with the three consecutive days a family needs. Room transitions, planned exits and waitlist preferences may allow the service to assemble a better match without lowering the standard fee.

If price is genuinely the barrier, make the comparison fair and clear. Publish the total daily fee and any unavoidable charges. The ACCC requires businesses to display the minimum total price where a price is promoted, and claims about savings or value must not mislead. ^R9R10

Possible alternatives to a permanent fee cut include:

• reviewing whether separately charged items should be included;
• offering a tightly defined, time-limited incentive with clear terms;
• helping families understand CCS and the hourly rate cap without promising an exact subsidy;
• strengthening the value of the service through quality, consistency and useful inclusions;
• targeting the actual vacancy rather than discounting every place.

Do not use false scarcity. “Only one place left” should be true, dated and specific to the room and attendance pattern. Misleading representations about availability can breach Australian Consumer Law. ^R10

Practical next step: compare the value of filling the place at full fee, offering a limited incentive and leaving it vacant for another month. Then test the smallest change that addresses the diagnosed cause.

Related guides

• How to show childcare availability without promising a place
• A practical sprint for filling an immediate childcare vacancy
• What’s a good occupancy rate for a childcare centre?