What is Off-Peak

Off-peak periods are the CONSISTENTLY RECURRING hours, days, or months when you typically earn less revenue than you usually generate on average. It could be intraday (e.g., 2-4 pm most weekdays), specific days (e.g., Mondays, Thursdays, every week), or seasonal (January, or March to May).

Identifying an off-peak period in financial terms for a service-providing business involves identifying times when revenue generation is significantly lower than peak revenue periods. A simplified definition without the recurrence time variables depends on the business's model, but the key comparison points are:

1. Peak Revenue (PR) – The maximum revenue attained during the highest-demand period.

2. Average Revenue (AR) – The mean revenue earned over a typical day or period.

3. Off-Peak Revenue (OPR) – The revenue during traditionally low-demand periods.

4. Revenue Threshold (RT) – A defined percentage or value below PR or AR that categorizes a time slot as off-peak.

Off-peak periods occur when a business generates less revenue than its defined threshold, which is below its peak or average revenue, due to slow consumer flow or a lack of service demands.

For more details, please refer to our Off-Peak Analysis section.