“If you can’t measure it, you can’t manage it”, so said the well-known management consultant Peter Drucker.
One of the hottest topics and most asked about issues relating to our system is reporting. Proving ROI, evidencing growth and demonstrating improvements in business performance – whatever your reason for needing to measure your business we have a report that’s just the ticket.
Here’s an overview from Avon Data director Mark Cade on some of our most useful hotel booking software reporting metrics and how you can use them to assess your hotel’s performance.
“We have a whole array of measurement options in built into our system. The ones we focus on with clients and in training are the management reports as these are the ones which tell us how well a business is doing,” says Mark.
Here’s our pick of the crop:
Projected average room rate
This allows you to see how many rooms are sold and where the revenue is coming in divided by the number of confirmed and number of provisional bookings.
This is useful for identifying unconfirmed bookings, which particularly if it is a large or block booking will need chasing up. The closer to the date it remains unconfirmed the bigger the risk that the booking may be unfulfilled. This report allows you to keep an eye on what’s in the bookings pipeline.
Meal plan and tariff revenue
This is the proportion paid for accommodation versus the proportion allocated for food and extras. This data can enable you to review meal plans and to show revenue confirmed so you can assess where revenue is allocated and identify any seasonal or day patterns.
Average daily rate (ADR)
This is a commonly used measurement in hotel management systems. It shows the average income per room at any given time.
Although this measurement can give you a snapshot in time it should not be used in isolation to assess hotel performance. Occupancy and rev par should be looked at with ADR for a full picture.
This is the total number of rooms sold at a given time as a percentage of the total rooms available. This is likely to vary over time depending on the day of the week and the season. It’s useful for comparing like for like with previous years or periods.
Reviewing occupancy alongside lead times - how far out bookings are made (created date and arrival date) - is important to review as it shows a general picture for room booking patterns.
‘Revenue per available room’ can offer a more accurate picture of the business. It is the total amount of room revenue divided by the total number rooms available. This shows a more holistic view of how the business is performing. It’s also a good way to draw comparisons.
These are really useful combination measurements for assessing how well a hotel is doing. By providing a detailed breakdown of the hotel's monthly pick up by day in terms of room nights, ADR, occupancy and revPAR, a pace report shows the business on the books.
There are many different elements that our hotel booking software can assess. For example, it can show how many rooms have been picked up or lost in the previous seven days.
Front of house reporting
This covers every day elements of running an accommodation business and although these reports may not be feature high up in a GM or owners's priority list, they are vital for a smooth running reception and also has an impact on guest service. Staff can see who’s in house/who’s arriving/and who’s booked in for breakfast lunch and dinner.
Room revenue report
This is another pace report and a really good combination report on the whole business. It takes into account several measurements including average rooms, booking levels, occupancy, lead times and revPAR
A comparison over time can give a useful picture for example looking at three years in a row to gauge patterns or changes in the hotel performance overall.
Bookings summary report
This assesses where bookings are coming from by reviewing bookings by channel. This can help when deciding whether or not to bring on a new channel and then to work out what impact it’s having on the business.
It can also be helpful to review against ‘book direct’ promotions e.g. free breakfast – if you book direct with the hotel rather than via a third party. With hotels spending an average of 18% per booking to OTAs for online customer referrals it’s worth offering a freebie for more direct income.
Room use by room number
This is good to see which rooms generate most money. Reception staff will often put people in the rooms they like e.g. not next to the lift so a negative comment is less likely, therefore some rooms will end up being ‘favoured’ or used more often.
A higher grade of room does not necessarily mean more money – are your guests bringing their own picnic and Prosecco rather than dining in the hotel restaurant as they’ve chosen to spend more on the room?
This report shows what’s actually been settled by guests on check out and is useful when you come to remodel. For example, if a suite is not generating regular income it might be better to convert the space into two or more rooms as that will have a positive impact on overall income. It’s important to know what will work best at your hotel and what grades of room work best.
This data allows you to see the revenue that a specific market type is generating for you e.g. leisure or corporate guests. This can be measured by an individual daily period or over a time frame and can be used to see the value of the revenue types such as related associated food and bar spend.
All of our reports are exportable into Excel and can then be further analysed through using pivot charts.
We advise customers to really consider what they are measuring and track the overall performance of the hotel.
As with any business – use reports that are informative, useful and relevant; spend time looking at the picture given by the data and then you will make informed decisions which are likely to create positive commercial impact.
Posted on June 11th, 2018 by Avon Data: Category Avon Data News
See how our hotel software can help your business growTake the tour