benchmarking
Smart Benchmarking Starts With the Right Compset
Eula Skiles | August 15, 2022
By Eula Skiles Setting up a right profitability management approach starts with understanding your market and benchmarking against the right hotels. It’s also a way to attract the right guests. One of the best ways to do that is identifying the hotels that are most like your own vis-à-vis key count, F&B services and outlets, conference space and other offered amenities. In the hospitality industry, choosing a compset if the first step toward a winning market-share formula. For a consumer, one of the biggest costs of travel is booking a hotel room. The pricing trends of hotel rooms stem from a complex business strategy. In order t...
Six Ways Benchmarking Can Support Post-Pandemic Recovery
STR | January 3, 2022
Depending on when you read this blog, the situation around the pandemic has probably shifted since the time of writing—and could easily change again. No matter what stage of the pandemic you are experiencing, however, this brief guide on six practical ways benchmarking can support your distribution strategy and revenue recovery will remain the same. 1. Daily/weekly performance monitoring is now more important than ever Benchmarking is the process of measuring the performance results of your own business against various segments of the marketplace—namely, the competition. In top-line benchmarking, hotels usually compare thr...
6 Tips for Benchmarking Your Way to Success
HotStats | November 17, 2020
Like it or not, your hotel is in the middle of a race with the competition — although the current hotel climate may feel more like an obstacle course. Wouldn’t it be nice if, during this ongoing marathon, you could peek across at competitors, note their positions and analyze the techniques, equipment and other factors propelling them forward? That’s the magic of hotel benchmarking. It reveals the financial performance of the whole field, breaks down the factors contributing to each hotel’s position and highlights how your hotel can improve its financial standing. Ready to learn how to benchmark your hotel against competitors and...
6 Ways Hotel Benchmarking Can Help the Hotel Industry Rebound
HotStats | November 10, 2020
The hotel industry won’t emerge from the financial chasm caused by COVID-19 overnight, but recent data already points to a rebound. Benchmarking could help quicken the pace of recovery. As the hotel industry continues to thrash its way through the pandemic, hotel benchmarking has the power to not only keep hotels afloat, but also help lift the sector to solid financial ground once again. How Hotel Benchmarking Is Reviving the Hotel Industry It’s no secret that the pandemic broadsided the hotel industry. Consider U.S. hotels, which recorded a gross operating profit per available room (GOPPAR) of $-9.87 in the third quarter, a 110% d...
How Operational Efficiency Leads to Optimal Profitability
HotStats | October 22, 2020
In the hotel industry, the deeper decision-makers can drill down into departmental figures, the easier it is to generate revenue, chisel away at unnecessary costs and post a healthy profit. Simply put, the best decisions are driven by in-depth analysis of departmental revenue and operational costs. Sound like too much work? Analyzing these critical figures and unlocking higher profits may be easier than you think. Is the Hotel Industry Measuring Revenue Wrong? First, why is it important to measure departmental metrics? The answer is clear when you look at what most leaders in the hotel industry are doing wrong. The...
Benchmarking 101: The Bottom Line on Utility Costs
HotStats | September 22, 2020
In the age of COVID, numerous operating costs have decreased, as hoteliers have done all they can to reduce expenses to help offset the extreme reduction in revenue. Still, there’s never zero cost. Even a closed hotel has expenses. So, too, do hotels operating at reduced capacity. One of the areas that hoteliers should always be mindful of is utilities, which in the 11th edition of the Uniform System of Accounts for the Lodging Industry (USALI) are recorded in the Property & Maintenance schedule. Utilities include electricity, gas, propane, oil and water/sewer. Utilities can have a massive impact on a hotel’s profit. And even...
How Turning to Benchmarking Can Stave Off Financial Ruin
HotStats | September 1, 2020
When the winds of crisis whip, and a hotel’s cash begins flying away, it’s easy to panic. During a crisis, it might feel like the whole market has been pulled out from under you. However, there is hope even in the worst financial crisis. With hotel benchmarking, it’s possible to fight off financial ruin, even in the middle or during the aftermath of financial turmoil. Wondering how? In this article, we dive into ways hoteliers can use benchmarking to keep a hotel out of the red and steer operations to long-term profit amid a nightmarish market. First, What Happens During a Financial Crisis? Every financial crisis will be diff...
How to Calculate and Monitor Your Break-Even Point
Global Asset Solutions | August 26, 2020
COVID-19 presented many challenges for hotels who are currently striving to merely break-even instead of maximizing profit as usual. While hotels usually aim for 35% occupancy threshold, many are hoping that COVID-19 cost reductions will lower the break-even threshold. How can a hotel understand when is the right time to resume operations? What occupancies and rates should they be aiming for? How has the pandemic effected the BEP considerations? Through calculating a hotel’s BEP, hotel asset managers are able to determine when is the optimal time for a hotel to reopen or if it may be better to remain closed until higher occupancy levels are...
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