Every business needs their key performance indicator to have a holistic view of where the business stands; and what they can do to make things better. The same is to be done with your hotel KPI, when you have the right hotel performance metrics in place; you can manage your hotels better. This means getting the daily required hotel supplies such as hotel pool towels from D-ZEE Supply and more.
There has been a shift in how these KPIs work in the hotel industry, Hence, we are here to help with the most important KPIs for hotels in 2021 for you!
1. The New Hotel KPI North Star
A single hotel performance metrics limits the results; but the new metrics ensure a more holistic view of what needs your attention more.
Setting a goal is easy, achieving it on the other hands is technical; as you really have to work hard to ensure the maximum hotel occupancy at the best rate. The North star metric has been helpful for the longest time; but when focusing on the net operating income (NOI), total revenue per available room (TRevPAR), and gross operating profit per available room (GOPPAR) gets you the real image of what is happening. You can also look into the exact point where any changes need to be made to get to your goal better.
2. Managing the Average Daily Rate & Stay Length
You have to evaluate the daily finances of the hotel to ensure profits in every way possible; daily occupied rooms play a key role in the management of this hotel KPI.
When forecasting the hotel revenue, the daily occupancy numbers and the room rent play an essential part. The more rooms are occupied at the better rates, more the earning of the hotels in ever way. You need to calculate the daily occupancy rate and revenue generated from that. Along with that, you need to take an average of the overall occupancy rate with the guest stay length in mind. All of these give you the complete understanding of the daily generated revenue and the long-term profit earned.
3. Online Reviews for Hotel Performance Metric Management
One of the most important KPIs for hotels in 2021, online reviews are not only important for guests to make decisions; but also, an essential part of hotel performance metrics to understand guests better.
In order to improve yourself, you need to know where you’re lacking. Not all guests may give you a review at your establishment, but would leave reviews online. Keeping a eye out for online reviews let’s you dive deep into the guest’s psyche and improve in areas where you might have not even though of looking into. It will help you better your hotel and also increase the occupancy and satisfaction rate of guests.
4. Market Penetration with Revenue According to Room Type
This hotel KPI helps you understand whether you’re generating enough revenue by renting out more rooms with higher value or not.
It does seem like one room that costs more going on rent is better than multiple rooms that cost less; but that might not always be the case. When evaluating revenue based on room types, managers need to analyze which room type is actually generating more profits. Not all hotels are the same; hence the profit earned by room types from hotels depends on their unique analysis. When setting the price points for your hotel; you also need to look into what your competitors are doing. In respect to that, you set the room rates and create packages around it.
Practical Implementation of Hotel Performance Metrics 2021
When implementing the hotel performance metrics, you have to consider every aspect of your hotel operations; focusing on just one aspect limits your workings.
Make the right changes to manage your hotel KPI better with the most important KPIs for hotels in 2021. This would give you a better understanding of what you need to look into to provide the best services while generating the most revenue.
What according to you are the most important KPIs for hotels in 2021? Let us know in the comments below.