What is Off-Peak

Defining 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. The exact definition can depend on the business model, but the key comparison points are:

• Peak Revenue (PR) – The maximum revenue attained during the highest-demand period.
• Average Revenue (AR) – The mean revenue earned over a typical day or period.
• Off-Peak Revenue (OPR) – The revenue during traditionally low-demand periods.
• 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.

Off-Peak Analysis