One of the major factors that have a huge impact on the Hotel Industry is the Social and Economical Environment. No matter how well developed and organized an accommodation business is, it cannot avoid completely the effects of a crisis – especially when this crisis has to do with the safety of the travelers. It is no surprise at all that the impact of the COVID-19 on hotel revenue is enormous, with massive cancellations and some properties even suspending their operations. Of course, this doesn’t mean that a thorough crisis management strategy cannot ease the intensity of the impact. HotelsRead Morekeyboard_arrow_right

There are several hotel KPIs that help a hotel manager or a hotel revenue manager understand better the performance of the hotel and the effectiveness of the yield management actions. Such KPIs are the ADR (Average Daily Rate), the Occupancy Percentage, the Overall Revenue, the Reservations and Overnights numbers, the LOS (Lenght of Stay) and the Booking Window. Hotel RevPAR One of the most important hotel KPIs is the RevPAR (Revenue Per Available Room). The specific Key Performance Indicator shows the revenue produced per available room of the hotel and in fact combines the metrics of the Occupancy Ratio andRead Morekeyboard_arrow_right

One of the main factors that affect the effectiveness of the revenue management is the rate of cancellations and its impact on the occupancy of the hotel. In order to improve the financial results of the hotel, the revenue manager needs to be able to reduce the percentage of cancellations and re-sell the cancelled rooms. That means that you need to have a thorough understanding of your guests’ behavior in terms of cancellation probability, to create the best balance between non-refundable and flexible reservations and to develop the last-minute offers which will fill the empty rooms without having a negativeRead Morekeyboard_arrow_right

Finding the ideal point of balance between occupancy and rates is critical for the hotel business. Many factors have to be taken under consideration that cannot really be predicted due to the high dependence of Tourism to the economic and social environment. Traditionally, hoteliers set their pricing policy based on figures of previous years and predictions based on various, yet not certain, factors; a practice that sometimes works but cannot really be creditable in the demanding environment of the contemporary hotel sector. There is crucial need for data that shows the actual potential of a property so as to assistRead Morekeyboard_arrow_right

No matter how much the buyer’s decision is influenced by the new hospitality trends, price will always be one of the key factors in whether a guest books a stay in a hotel or not. Thus the need of developing an effective hotel yield management strategy will always be critical. In order to achieve that, a lot of variables should be taken under consideration and huge amounts of data must be analyzed. Develop the correct rate strategy Important questions must be answered. When should a hotel lower its rates? How can it guarantee that there will not be a lossRead Morekeyboard_arrow_right