Home » Measuring hotel performance: key indicators
Measuring hotel performance: key indicators

Measuring hotel performance: key indicators

Monitoring and analysing results refers to the application of techniques and tools to measure the hotel’s performance, i.e. the revenue it is earning. In this sense, mention should be made of the strategic use of data and performance indicators of the hotel, as well as of the local market. In the following, we will get […]

Monitoring and analysing results refers to the application of techniques and tools to measure the hotel’s performance, i.e. the revenue it is earning. In this sense, mention should be made of the strategic use of data and performance indicators of the hotel, as well as of the local market.

In the following, we will get to know with IHCS some of the most important indicators or metrics in the hotel sector.

 

Occupancy and ADR (Average Daily Rate)

Occupancy and average daily rate (ADR) are two very important indicators when measuring results and performance. Firstly, occupancy measures the number of rooms occupied during a period and secondly, the average rate measures the average price per room sold.

 

RevPAR (Revenue Per Available Room)

Revenue Per Available Room (RevPAR) is an even more important metric than the previous ones, as it expresses a broader view of performance by combining occupancy and average daily rate (ADR) in a single indicator. It also allows us to compare our productivity with the local market.

TrevPAR (Total Revenues Per Available Room)

TrevPAR is a metric that integrates the hotel’s total operating revenues, therefore, it is even broader than the previous one, as it allows measuring the hotel’s overall performance.

 

The GopPAR (Gross Operating Profit Per Available Room)

GopPAR takes into account total revenue and operating costs. In this way it allows to measure the hotel’s operating profit in a simple way.

herramientas medicion analiticas hotel

Tools for performance analysis

Hotel Management Systems (PMS)

These are integrated platforms or software that allow the management of reservations, occupancy tracking, rate control, customer registration and billing management. These systems collect valuable data on demand, customer behaviour and length of stay. They are therefore important for assessing the efficiency and performance of the hotel.

 

Online Reservation Systems

This refers to the booking engine that is integrated into the hotel’s website. These platforms, apart from contributing to direct bookings, allow the collection of data on conversion rates, booking patterns and customer preferences.

These insights are essential to adjust pricing strategies and promotions, as well as to identify demand trends over time.

 

Web analytics and visitor tracking tools

These tools allow the tracking of traffic on the hotel’s website, revealing which pages are the most visited, how long users spend on the site and which links generate the most interaction. This helps to assess the effectiveness of the online presence and identify areas for improvement.

Online reputation monitoring tools

These tools monitor the comments and reviews people make about the hotel. Some send email alerts when the name of the business is mentioned and others track what is being said about the establishment on social media, websites, forums, among others.

Analysing this feedback is invaluable to identify areas of strength and weakness in the service, and take corrective action or implement improvements.

 

Accounting and finance systems

Accounting solutions provide key financial information such as revenues, expenses and profit margins. This data is essential to assess the overall financial performance of the hotel and make strategic decisions based on sound data.

Revenue Management Tools

A revenue management tool helps hotels manage various revenue-related processes. These systems work through a pricing algorithm based on analytics that include internal and external data, in turn giving recommendations for updated pricing and stay restrictions.

These tools maximise revenue and occupancy by dynamically adjusting prices according to supply and demand.

 

The importance of data analytics

Data analytics is a process that is becoming increasingly relevant in the hospitality industry. The tools we saw in the previous section use data to produce analysis, make decisions and predict trends. And most of this data is in quantitative and digital formats. Therefore, every independent hotel owner should prepare themselves in this regard. They should implement systems where they can store as much data as possible, as these will be the clues to better understand their target segment and thus offer a better experience, which will be transformed into higher profitability.

The importance of this issue makes it advisable to seek the advice and support of a hotel expert. IHCS can help you manage data analytics so that your hotel can reach maximum performance levels. Don’t hesitate, contact us!

Rate this post

Do you want to keep up to date with news and advice about the hotel sector?

We help you to develop and optimise your hotel project.

The 1st consultation is free!
Hotel Consulting
We use our own cookies and those of third parties in order to analyse the browsing of users and improve our services. If you continue to browse, we consider that you accept their use. You can obtain more information, or find out how to change the settings, by clicking on more information