RevPAR, Occupancy Rate, ADR, and Other Hotel Metrics

Why use it? RevPAR is one of the most popular metrics in hospitality. It's similar to ADR, but takes the unsold room into account, giving a more ... AltexSoft Menu ✕ facebook twitter linkedin telegram youtube instagram ©CopyrightAltexSoft2021 Email:[email protected] Phone: RequestforProposal Altexsoft Menu Share:FacebookTwitterLinkedin 26 May,2021 RevPAR,OccupancyRate,ADR,andOtherHotelMetrics:HowtoEvaluateYourProperty’sPerformance Share:FacebookTwitterLinkedin CONTENTS Occupancyrate,ADR,andALOS:basicoperationalmetrics Occupancyrate ADR(AverageDailyRate) ALOS(AverageLengthofStay) RevPAR,GOPPAR,CPOR,NOI,andotherfinancialmetricsforrevenuemanagement RevPAR(RevenueperAvailableRoom) TRevPAR(TotalRevenueperAvailableRoom) RevPAC(RevenueperAvailableCustomer) GOPPAR(GrossOperatingProfitperAvailableRoom) CPOR(CostperOccupiedRoom) ARPARorAdjustedRevPAR(AdjustedRevenueperAvailableRoom) NOI(NetOperatingIncome) MPI,ARI,andRGI:benchmarkingmetricstounderstandthepositionamongcompetitors MPI(MarketPenetrationIndex) ARI(AverageRateIndex) RGI(RevenueGenerationIndex) CSAT,NPS,CES:customer-relatedmetricstosupportmarketing Customersatisfactionmetrics Customersegmentation Websitemetricstomeasureonlineengagement Finalthoughts:measure,analyze,optimize…repeat Readingtime:15minutes It’sbeenalongtimesinceitbecameobviousthattodevelopandstaycompetitive,businessdecision-makingrequiredthesupportofdata.But,easiersaidthandone. Today,wehaveaccesstobiggervolumesofavarietyofdatathaneverbefore,butjustcollectingthosefactsandnumbersisnotenough.It’svitaltounderstandwhatinformationcanbeusefulandgiveabetterunderstandingofbusinessprocesses—notonlytomeasuresuccess,butalsoaidinmakingdecisions.Inotherwords,acertainnumberofmetricsandKPIshastobesetup,monitored,andanalyzedtobeturnedintovaluableinsights. Inthehospitalityindustry,choosingtherightmetricsandcarefullytrackingthemcanhelpyouasthehotelierorhotelmanagertounderstandhowyourhotelisperforming,compareitwithyourcompetitors,andpossiblyfindtheweakpointsandopportunitiesforimprovement. So,theaimofthisarticleistodescribethemainKPIstypicallyadoptedbyhotelstosupporttheirbusinessanalysis.Tomakeitasclearaspossible,we’lldemonstrateallthecalculationsthroughexamplesusingthesamenumbersofahypotheticalhotel. Occupancyrate,ADR,andALOS:basicoperationalmetrics Let’sstartwiththesimplemeasurementsthatgivethebroadestoverviewofyourhotel. Occupancyrate Whatdoesitshow?Anoccupancyrateismeasuredbydividingthenumberofoccupiedroomsbythenumberofavailableroomsandmultiplyingby100,showingthepercentageofroomsoccupiedataspecificmoment. Forexample,ifyouhavea10-roomhotelandlastnightyousold5rooms,thentheoccupancyratewouldbe50percent.Infurthercalculationswewilluse0.5whichisthesameas50percent. Whyuseit?Despiteitssimplicity,theoccupancyrateisanimportantKPIthatshowshowfullyourhotelis.Monitoringitovertimeletsyouunderstandhowyourhotelisperformingindifferentperiods.Itmightshowyouthatyourpropertyismostpopularontheweekendsorduringaholidayseason,orwhensomesportingeventstakeplacenearby.Inanycase,youwillknowbetterwhattofocusyourmarketingeffortsontogetthatdesired“Novacancy!”signonyourdoor. Importanttounderstand.Manyhoteliersprioritizetheoccupancyrateandfocusonincreasingitsvalue,forgettingthattheultimategoalistoincreaserevenuenotfilluptherooms.Therearecaseswhenhigheroccupancydoesn’tleadtobiggerprofit(forexample,whenyoulowertherates),soyouhavetouseitcarefullyincombinationwithothermeasurementstogetafullerpicture. Alsonotethatonlytheroomsthatareinserviceandreadytoberentedoutaremeantbyavailablerooms,excludingtheonesthatareundermaintenanceortakenbystaffmembers. ADR(AverageDailyRate) Whatdoesitshow?ADRisusedtocalculatetheaveragerentalrevenueperoccupiedroomatagiventime.TofindADR,divideyourtotalroomrevenuebythenumberofroomssold. Forexample,ifyousold5roomsoutofyour10-roomhotelandyourtotalrevenuewas$2,000,thenADRwouldbe$400.Obviously,itmakessensetocalculatethemetriconlyifyouhavedifferentroomrates,otherwiseitsvalueisprettyevident. Whyuseit?ADRisoneoftheessentialperformanceindicatorsthatbasicallyshowshowmuchmoneyeachroombringsyou.Youcanmonitoritthroughouttime(it’sgreatifitsvalueincreases)andcompareittoyourcompetitorstomakedecisionsaboutyourpricingstrategy. Importanttounderstand.ADRcanbedeceivingasitonlytellsyouonepartofthestory.Ittakesintoaccountneitheryourunsoldrooms,northerevenuethatcomesfromothersources(bar,spa,restaurant,tours,etc.),northeassociatedcosts.So,it’sausefulperformancemetricbyitself,displayingtheroom-specificrevenue,butitwon’tshowyouthecompletepictureofyourproperty’sfinancialresults. ALOS(AverageLengthofStay) Whatdoesitshow?ALOSidentifiestheaveragenumberofnightsyourguestsspendatyourhotelandiscalculatedbydividingthetotalroomnightsbythetotalnumberofbookings. Forexample,inAprilthenumberofroomnightswas200(outofmaximum300fora10-roomhotel),withatotalof50bookings.Then,ALOSis4days. Whyuseit?It’sbetterifALOSishighersinceshorterstaysmeanincreasedguestturnoverresultinginlargerlaborcosts.YoucaninfluenceALOSbyadjustingyourrevenuemanagementstrategyandofferingdiscountsforlongerbookingsorincreasingyourone-nightrate.Amoreaggressiveapproachcanbeappliedduringabusyseasonwhenhighdemandisexpectedsuchassettingaminimumlengthofstayrestrictiontominimizeshort-termstays. Importanttounderstand.ALOScandifferalotdependingonthefocusofyourhotel.Forexample,ifyouhaveapropertyinLasVegasandyoumostlyacceptguestscomingforaweekendgetawayoraB&BinthedowntownofChicagowithafocusonbusinesstravelers,yourhotelALOSwouldprobablybeshorterthanforaresortinCancunaimedatvacationtourists. RevPAR,GOPPAR,CPOR,NOI,andotherfinancialmetricsforrevenuemanagement Inshort,hotelrevenuemanagementisacombinationofdistributionandpricingstrategiesaimedatmaximizingincome. Checkourvideoonhowrevenuemanagementworksinhospitality Revenuemanagement,amongotherthings,isbasedoncarefultrackingofcertainKPIsandadjustingahotel’srevenuestrategyaccordingtochangesthattookplaceorarepredictedandexpected.Let’stakealookatthosemetrics. RevPAR(RevenueperAvailableRoom) Whatdoesitshow?RevPARshowstheamountofrevenuegeneratedbyoneroom,whetherbookedornot.Therearetwowaystocalculateit.YoucaneitherdivideyourtotalroomrevenuebythetotalnumberofavailableroomsORmultiplyADRbytheoccupancyrate. Forexample,selling5roomsoutof10broughtyou$2,000,soyourRevPARequals$200(you’regettingthesameresultbymultiplyingyourADRof$400bytheoccupancyrateof0.5.) Whyuseit?RevPARisoneofthemostpopularmetricsinhospitality.It’ssimilartoADR,buttakestheunsoldroomintoaccount,givingamoreaccuratepicture.Needlesstosay,hoteliershavetoaimatincreasingtheirRevPARsinceitreflectsboththepricingforroomsandtheabilitytofillthem. Importanttounderstand.JustlikeADR,RevPARdoesn’tincludeadditionalrevenuefromothersources,soitonlyshowstheinventoryperformance.Italsodoesn’ttakeintoaccountanyoperationalcostsandotherexpensesandcan’tbeusedtomeasureprofitability.Besides,thecalculationisontheper-roombasis,sosometimeslargehotelshaveasmallerRevPAR,butstillgeneratehighertotalrevenue.Readontolearnaboutmoredemonstrativeindicators. TRevPAR(TotalRevenueperAvailableRoom) Whatdoesitshow?TRevPARismeasuredbydividingyourtotalrevenue(fromroomrentalandothersources)bythetotalnumberofavailablerooms.Thismetricshowstheamountoftotalrevenueofthehotelperoneroom. Forexample,youhavearevenueof$2,000fromthe5bookedroomsoutoftenavailablerooms.Therevenueoftherestaurantis$1,000andtherevenueofthespais$500.Withthetotalgrossrevenueof$3,500,TRevPARequals$350. Whyuseit?TRevPARsolvesoneoftheproblemsofRevPARasitincludestheadditionalrevenuestreamsinthecalculation.Itmightnotbesignificantforsmallerpropertiesthatonlyrelyonrentalpayments,butitbecomesanimportantindicatorforhotelsmanagingmultiplepointsofsale.RevenuemanagershavetofocusonthisKPItodeveloptherevenuepotentialofallhoteldepartmentsandadjustthepackageoffersaswellastheentireupsellingstrategy. Importanttounderstand.SameasRevPAR,thisKPIdoesn’tconsideranyinputcosts,soitcan’tshowtheultimateprofit. RevPAC(RevenueperAvailableCustomer) Whatdoesitshow?RevPACshowstheamountofrevenueperguest.Todefineit,dividethetotalrevenuebythetotalnumberofhotelguests.Youcanalsomakethecalculationincludingcustomersthatdonotstayatthehotel,butonlycometousetheamenities,ifyouhavesuchanoptionforvisitors. Forexample,yousold3doubleroomsand2familyroomsfor4peoplewhichbroughtyou$2000.Theyateattherestaurantforatotalof$1,000andusedthespaservicesfor$500.Besides,16peoplevisitedyourbar,resultinginanother$700.Then,yourRevPACpereachofyour30guestswouldcometo$140. Whyuseit? RevPACdemonstrateshowmuchvalueeachguestbringstoyourproperty.It’sespeciallyusefulifyouhavemultipleamenitiesopentonon-sleepingguests,suchasabarorrestaurant,spa,shops,carrental,casino,wateroramusementpark,etc.Youcanalsomonitoritifyouhostconferencesorothereventsthatgenerateincome(andofferopportunitiesforupselling.) Importanttounderstand.Youcanobtainthesameroomrevenuefromasingleguestorafamilyofseveralpeople,butagroupwouldspendmoreonfood,entertainment,ortours.RevPACcanalsohelpyoumonitorhowwellyouramenitiesareperformingandiftheyarepayingoff. GOPPAR(GrossOperatingProfitperAvailableRoom) Whatdoesitshow?GOPPARdemonstrateshowmuchgrossoperatingprofitcomesfromeachroom.Grossoperatingprofitisyourtotalrevenueminusgrossoperatingexpenses,andifyoudividetheresultbythetotalnumberofavailablerooms,you’llobtainyourGOPPAR. Forexample,yourtotalnetrevenueis$3,500andyourgrossexpensesare$1,700.Sogrossoperatingprofitwouldbe$1800.Dividedbythe10rooms,GOPPARequals$180.IfyouwanttoseetheyearlyGOPPAR,youhavetousetheyearlyvaluesoftherevenueandexpensesandmultiplythenumberofroomsby365. Whyuseit?GOPPARisastrongperformanceindicatorasitgoesfurtherthantherevenue-relatedKPIsandincorporatesoperationalexpenses.So,thismetricreflectshowmuchmoneyyourhotelactuallymakes,allowsyoutounderstanditsactualvalue,andmeasuresitsbottomline. Importanttounderstand.TherearevariancesincalculatingGOPPARdependingonthecoststakenintoaccount.Generallyspeaking,thereare2maingroupsofexpenses: variablecoststhatareanyoperationalexpensesthatchangedependingonthenumberofroomssold,i.e.,breakfast,supplies,costtocleantheroom,incrementalenergy,etc.;and fixedcoststhatarepaidonamonthlybasistomaintainpropertysuchasrent,payroll,Internetbills,etc. So,youcanincludeonlyvariable,room-relatedexpensestomeasureGOPPAR.However,it’sworthconsideringbothvariableandfixedcostsforbetterunderstandingofhowwellyoumanage. MonitoringGOPPARthroughbothpeakandlowseasonswillshowyouifyourexpensesarebalanced.Besides,ifyou’redevelopingyourbusiness,addingnewservices,orjustchangingthestructureofyourexpenditure,GOPPARwillshowyouifyoureffortspayoff. CPOR(CostperOccupiedRoom) Whatdoesitshow?CPORismeasuredbysimplydividinggrossoperatingexpensesbythenumberofroomssoldtoshowhowmucheverysoldroomcostsyou. Forexample,youhave5roomsoccupiedandyourtotaloperatingexpensesare$1,700.TheCPORwouldbe$340. Whyuseit?CPORisacrucialKPIthatallowsyoutomonitoryourexpenses.It’softenusedtocalculatetheminimumrateperroomsinceyouobviouslyshouldn’tchargelessthanyouspend. Importanttounderstand.Hereagaindifferentwaysofcalculationexistassometimesonlyroom-relatedcostsareconsidered.Inthisway,youcanfindtheaveragevariableexpensesperroom,whichisalsogoodtoknow.However,ifyouwanttodefineyourminimumroomrate,weadviseincludingbothvariableandfixedcoststoavoidlosses. ARPARorAdjustedRevPAR(AdjustedRevenueperAvailableRoom) Whatdoesitshow?ARPARshowshowmuchprofiteachroombringsyou,consideringvariablecosts(we’veexplainedthisfigureintheGOPPARsection)andadditionalrevenue.TocalculateARPAR,firstsubtractthevariablecostspersoldroomfromyourADR,addtheamountofadditionalrevenuepersoldroom,andthenmultiplytheresultbyyouroccupancyrate. Forexample,yourADRis$400andyouroccupancyis50%with5roomssoldoutof10.Let’ssayyourvariablecostsare$750(whichis$150perroom)andtheadditionalrevenueis$1,500(whichis$300perroom).Then,yourARPARwouldbe$275. Whyuseit?Developedandintroducedin2015byindustryexpertIraVoukasanewindexforprofitmaximization,ARPARprovedtobewaymoreaccurateandusefulthanRevPARasitaccountsforvariableexpensesandalsoconsidersancillaryrevenue-generatingPOS.Inthisway,itgivesabetterpictureofinventoryprofitability,showingthenetrevenuecreatedbyeachoccupiedroom. Importanttounderstand.ARPARdoesn’tincludefixedcosts,whichcanbequitesignificant,soitstillcan’tbeusedformeasuringyourproperty’soverallprofitability.Also,it’shardtouseitforbenchmarkingpurposessincevariablecostsandadditionalamenitiesoftendifferacrosshospitalitybusinesses. NOI(NetOperatingIncome) Whatdoesitshow?AnNOIshowswhetheryourpropertyismakingaprofitorloss.Tofindityouhavetosubtractyourgrossoperatingexpensesfromyourtotalrevenue. Forexample,youmade$3,500fromroomsales,restaurant,andspa.Yourgrossexpensesare$1,700,makingthatday’sNOI$1,800.Tocalculateyourweekly,monthly,oryearlyNOI,youhavetotakethecorrespondingtotalfigures. Whyuseit?Incomeiswhat’sleftafteryoupaidyourexpenses.So,NOIistheKPIthatfinallydefinesthebottomline,orabsolutefinancialresultofyouractivity.It’sthemostimportantmetricforownersandinvestorsasitclearlyshowsyourproperty’sabilitytogenerateprofit. Importanttounderstand.TheNOIistheincomebeforetaxanddoesn’tconsidersomegroupsofexpensessuchasinterestonloansandamortization.Inotherindustries,it’sreferredtoasEBIT—earningsbeforeinterestandtaxes. MPI,ARI,andRGI:benchmarkingmetricstounderstandthepositionamongcompetitors Lookingatyourreportsinisolationcan’ttellyouwhetherthosenumbersarecauseforconcernorcelebration.Comparingyourperformanceagainstyourcompetitorsisanimportantactivityandhastobeconductedregularlyasitallowsyoutoseepotentialareasforimprovement.Knowingtheindustrystandardsoranalyzinghowindustryleadersareperformingcanhelpyouidentifyyourownweaknessesandadjustyourstrategyaccordingly. Formoreeffectivebenchmarking,youfirsthavetocreateyourowncompetitivesetofhotelsthatsharethesamemarketsegmentandaresimilarinmaincriteriasuchaslocation,size,rangeofservices,etc. Onceyoucomeupwithsuchaset,you’llhavetodoabitofresearchtofindoutwhatyourcompetitors’KPIsare.AcommonwayofgettingthatkindofinformationisthroughaSTRReportthatprovidesdataon67,000hotelsin180countries. Withthenecessarynumbers,youcanperformthecompetitiveanalysis.Note,thatalltheindexesdescribedbelowcanbecalculatedbyasimpledivisionorcanbeturnedintoapercentagebymultiplyingtheresultby100.Besides,youcancompareyourmetricstothemarketaverage,tomarketleaders,oranyspecifichotelthatyoumighthavearivalrywith. MPI(MarketPenetrationIndex) Whatdoesitshow? MPI(alsoknownasoccupancyindex)comparesyourhotel’soccupancytothatofyourcompetitors.It’scalculatedbydividingyourhoteloccupancybythemarket/otherhoteloccupancy. Forexample,youroccupancyrateis50percentandthemarketaverageis80percent.TheMPIwouldbe0.625,whichislessthan1,meaningthatyourrateislower. Whyuseit?Asobviousasitmayseem,it’sanimportantindicatortotrack.Basically,itshowsifcustomerschooseyourhoteloverothers. Importanttounderstand.Aswe’vealreadymentioned,occupancyisnotthebestindicatorofsuccessasitdoesn’taccountforrevenue(droppingratescanraiseoccupancyandtheMPIbutleadtofinanciallosses).So,MPIisusefulforknowinghowyourhotelstandsinthemarketbutcan’tbeusedtoevaluateitsperformance. ARI(AverageRateIndex) Whatdoesitshow?AnARIisfoundbydividingyourhotel’sADRbythemarketADR.Itmeasureshowyouraverageratescomparetootherhotelsinyourcompetitiveset. Forexample,yourADRis$400andyourleadingcompetitorhas$500.So,ARIequals0.8. Whyuseit?ARIgivesanideaofwhattheaveragemarketpricesareandhelpsadjustyourpricingstrategy.Ifit’slessthan1,itmeansthatyouareunderchargingandpossiblylosingrevenuebecauseoflowerrates. Importanttounderstand.ARIhastobetrackedtogetherwithoccupancyand,again,withotherrevenue-focusedKPIs.EventhoughlowvalueofARIisconsideredasignofpoorperformance,itcanbearesultofyourmarketingstrategyandintentionallydroppedratestoattractmoreguestsandboostoccupancy. RGI(RevenueGenerationIndex) Whatdoesitshow?RGI(alsocalledRevPARindex)comparesyourRevPARtothatofyourcompetitorsandisobtainedbydividingyourhotel’sRevPARbythatofamarketoranotherhotel. Forexample,yourRevPARis$200andtheneighboringpropertygets$160.RGIcomesto1.25,whichisagoodresultasit’smorethan1. Whyuseit?Aswesaid,RevPARisonetraditionalmetricusedtomeasureperformance,blendingoccupancyandrates.So,RGIcanshowifyou’regettingafairshareofthemarketinrelationtoyourcompetitors. Importanttounderstand.RememberthedisadvantagesofRevPARwementionedaboveanddon’tconsiderittheultimatefocusofyourstrategy. CSAT,NPS,CES:customer-relatedmetricstosupportmarketing Thenextgroupofmetricswe’llbrieflydiscussarenotspecifictohotelsbutarestillimportanttomonitorsinceunderstandingcustomersandtheirexperienceisessentialforanyservice-focusedbusiness. Customersatisfactionmetrics Guestsatisfactionisnotalwayseasytomeasureandyouoftenhavetodealwithqualitativefeedbackdataextractedfrompost-staysurveysandonlinereviews(readourpostaboutsentimentanalysistoknowhowtoextractinsightsfromsuchreviewdata).However,therearecertainmetricsthatyoucaneasilyobtainandmonitor. CSAT(Customersatisfactionscore).Askingasimplestraightforwardquestionlike“Howsatisfiedwereyouwithyourexperience/ourservices?” witheasy-to-choosescaleoptions,say,from0to10,canprovideyouwithameasurableandtrackableresult.Youcanincludesuchaquestioninyoursurveysoradditattheendofchatbotinteraction. Simplecustomeropinioncollection,source:helphouse NPS(NetPromoterScore).NPSisagoodwaytomeasureyourcustomers’loyalty.NPSsurveystypicallyconsistofaratingquestion,e.g.,“Howlikelyareyoutorecommendourcompanytoafriendorcolleague?”,andanopen-endedquestionthatpromptsrespondentstoexplaintheirchoice.ReadourarticlededicatedtotheNetPromoterScoreformoreinformation. WhatisagoodNPS?Source:Netigate CES(CustomerEffortScore).CEScanbeusedtomeasurehoweasyandcomfortableitwasforyourcustomerstointeractwithyourbrand,whetheritwasbookingaroomonyourwebsite,gettingassistancefromasupportteam,orusingyourmobileapp. SampleCEScalculation,source:datapine Customersegmentation Segmentationisnotactuallyaboutthemetrics,butratheraboutbetterunderstandingwhoyourmaincustomersare.It’sanextremelyimportantmarketingpracticebecauseonceyouhavethatknowledge,youcancreateeffectivemarketingstrategiesaimedatdifferentsegmentstoprovideapersonalizedexperiencetoeveryguest. Typically,the4maintypesofsegmentationare demographicsegmentation—groupingbyage,gender,ethnicity,occupation,income,religion,etc.; psychographicsegmentation—groupingbylifestyle,interests,values,etc.; geographicsegmentation—groupingbygeographiclocation,cityvsruralorigin,etc.;and behavioralsegmentation—groupingbasedonthepreviouscustomerbehaviorwithyourbrand,i.e.,purchasepatterns,preferredpaymentmethods,preferredtypesofcommunication,saleschannels,etc. Somedatanecessaryforthesegmentationprocessiseasiertocollect(likepersonalinformationenteredduringthebookingprocessortrackingpreviouspurchases),whileothertypesrequiremoreeffort(likecreatingquestionnaires,conductingpersonalinterviews,researchingpublishedinformationorsocialmedia,etc.). Websitemetricstomeasureonlineengagement Thisgroupofmetricsisalsonotindustry-specific,butit’sobviousthatglobaldigitizationgiveswebsitesahugerole.AccordingtothestudybyFuelTravel,86.7percentofalltravelersvisitahotel’swebsitebeforebooking.So,analyzinguserbehaviortounderstandyourwebsiteperformanceisamusttoensureapleasantonlineexperienceforyourguests. TheinformationfortrackingthesemetricscanbetakenfromtheGoogleAnalyticstooloranyotheralternativeinstrumentthatallowsyoutotrackcustomeronlinebehavior. GoogleAnalyticsinterface,source:B2C Here,we’lljustbrieflygooverafewofthemetricstogiveyouanideaofthevaluetheycanbring. Bouncerateshowsthepercentageofvisitorswholeaveyourwebsitequicklywithoutdoinganything.Ifyourbouncerateishigh,itmeansthatyourcontentisn’tinterestingorengagingenough. CTRorclick-throughrateisthepercentageofuserswhoactuallyclickedonyourlinkafterseeingitinthesearchresultsoranonlinead.IfyourCTRislow,it’sworthchangingyourmetatitleordescriptiontomakeitmoreappealing. Newvisitorsvsreturningvisitorsshowstheratiooffirst-timevisitorsandtheonesthathavealreadyvisitedbefore.Ifyouhavemanyreturningvisitors,it’sagoodsignasitmightmeanthatyouhavealotofloyalcustomers.Ifnot,it’sareasonforworkingonyourcustomerretentionstrategy. Conversionrateisthemostimportantmeasurementofsuccessasitshowstheshareofpeoplethatactuallymadeabookingthroughyoursite. TimeonsiteorAveragesessiondurationishowmuchtimevisitorsspendonyourwebsite.Ifyougetalotoftrafficbutthesessiondurationislow,itmightbeasigntooptimizeyourcontent. Linksharingwhenthelinktoyourwebsiteissharedonsocialmedia,blogpost,orothersites,istheultimatestageofengagementandisasignthatyou’redoingagoodjob!Unless,ofcourse,it’sthenegativereference,butwe’resureit’snotyourcase. Finalthoughts:measure,analyze,optimize…repeat Astheysay,“Ifyoudon’tmeasureit,youcan’tchangeit.”NotmeasuringyourKPIsislikewalkingblindfolded—youdon’tknowwhereyou’regoingandwhat’saroundyou.Insuchahighlycompetitiveindustryashospitality,it’sabsolutelycriticaltocreateanefficientrevenuemanagementanddevelopmentstrategybasedonaccurateinformation. Rememberthatyoudon’thavetocalculateandtrackallthemetricslistedabove.Choosethosethatworkbestforyourbusinessandmaybeaddothersthathaveasignificantimpactonyourperformance(e.g.,marketingROI,laborcosts,energyconsumption,etc.).Implementingbusinessintelligencesoftwareandintegratingitwithyourpropertymanagementsystemcangreatlyfacilitatethisprocessbyautomaticallycollectingnecessarydata,makingaccuratecalculations,andvisualizingtrends. Onceyoucomeupwiththelist,makesureyoumonitoritclosely,analyzechanges,anddiscoverreasonsbehindfluctuations.Asyouextractinsights,takethenecessaryoptimizationsteps,watchhowitaffectsyourresults—andkeepdeveloping. 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