Data Analysis

Hotel Performance Data Reports: 7 Important Data Points to Include

To hit your revenue targets, you need the right metrics on your hotel performance data report. Here are the seven most important stats you should include.

If you’re looking to track and improve your hotel's revenue performance, a hotel performance data report is your first step. It will help inform important future decisions and identify where your hotel’s performance is lacking — so you can make improvements and produce better results.

After all, you can't improve if you can't identify what needs to be improved. 

Like H. James Harrington once said, "Measurement is the first step that leads to control and eventually to improvement. If you can't measure something, you can't understand it. If you can't understand it, you can't control it. If you can't control it, you can't improve it."

To reach performance goals, you'll need these seven data points in your next hotel performance data report. That way, you can track and identify areas — i.e., customer service, ratings, volume, quality, etc.— where you may need to make changes for the better. 

What are the most important metrics to include in your next hotel performance data report?

With more than 700,000 hotels and resorts around the world for customers to choose from, the hotel and hospitality industry is swimming with competition. So, how do you keep up or— better yet— surpass competitors in such a saturated market? 

The solution to this problem is to track these seven important data points that you won't want to miss out on in your next hotel performance data report. 

1. Average daily rate (ADR)

Arguably the most important KPI (key performance indicator) to track in your report, the average daily rate measures how much revenue you're generating per occupied room, each day. This is an important metric to follow as it gives you insight into your hotel’s financial performance and indicates the value your guests receive for one night’s stay.

ADR = Total Room Revenue / Number of Rooms Sold

Pro tip: Tracking your competitor’s ADR will contextualize your ADR among the average prices customers are paying throughout the area, which will keep your pricing competitive and maximized. 


2. Revenue per available room (RevPAR)

RevPAR is a metric that gives you insight into your hotel's ability to fill available rooms at an average rate.  Hotel’s use this metric to more accurately price their rooms as it tells you the revenue for all available rooms, even those that aren’t occupied. Poor RevPAR could be a sign that the overall success of your hotel is in jeopardy.

RevPAR = Rooms Revenue / Rooms Available


3. Average length of stay (ALOS)

As the name suggests, the average length of stay measures how long your customers stay at your hotel at a time, on average. If you notice that this metric is running on the lower end during certain months or quarters, it may help to consider some perks you can incorporate for more extended stays. For instance, bigger discounts on stays that are two nights or more.  

ALOS = Total Room Nights / Number of Reservations


4. RevPAR Room Type Index (ReRTI)

The purpose of the metric RevPAR Room Type Index is to evaluate how much each type of room is contributing to your hotel's revenue. Are your premium rooms contributing enough to your RevPAR? According to Diego Fernandez Perez De Ponga, the Corporate Director of Revenue Management at Palladium Hotel Group, the premise of ReRTI is to better understand the "relationship between the inventory of each typology and the contribution of each one of these typologies to the RevPar." 

ReRTI = Percentage of RevPAR Total X Type / Percentage of Inventory X Type


5. Occupancy rate

Occupancy rate measures how many rooms are occupied compared to how many rooms you have available. You can track and measure this metric for a given day, week, month, etc. The importance of occupancy rate is making sure it compares favorably to that of your competitors in the area. Although it doesn't add as much value by itself, combined with other metrics, your occupancy rate can help you pinpoint the value customers see in your price, location, experience, cleanliness, etc. 

Occupancy Rate = Total Units Rented / Total Available Space or Units


6. Market penetration index (MPI)

When you track MPI, you preselect a group of competitors and compare your occupancy to theirs. This will give you the insight you need to determine where your hotel's performance stands in the industry. If you notice any of your competitors perform better, you may want to consider what they're doing differently to reach those results. 

MPI= Occupancy Percentage of Hotel / Occupancy Percentage of Set of Competitors 


7. Online reviews

Online reviews are everything in the hospitality industry. In fact, research shows that as many as 79% of consumers say that they trust online reviews just as they trust personal recommendations. 

While there's no way to avoid negative reviews completely, it is crucial that you do all the following:

  • Track reviews for insight into what customers like and dislike about your hotel.
  • Respond to ALL comments — good and bad. Responding to negative comments as often as you thank customers for positive comments shows you care about your customers' experiences. 
  • Encourage all of your customers to leave a review. The more, the better. You may even want to consider offering incentives. 

Ready to nail your next performance data report?

Take on your performance reporting with the most powerful suite of decision intelligence tools available to the hotel industry. Break down your data silos and compile these seven data points, and many more, on a single, flexible BI platform — so you can make performance reporting as easy as pressing a button.

Request a product tour today to see how inTouch BI can turn your hotel's revenue management into decision intelligence.

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