Mobile Marketing

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What is this metric?

Total available rooms represents the number of rooms available multiplied by the number of days in the reported period. It is used as a measure of capacity in the system of hotels.

Why is this metric important?

This metric is essential for proper inventory calculations, which lead to proper number bookings. It also is important for all of the hotel’s financial calculations as it determines how many operable rooms there to base revenue formulas off of. For example, if a hotel has 300 rooms, but only 290 are in service, then for that period, 290 is the base to use for metrics like RevPar.

What is this metric?

Hotel ADR measures the average price paid per room. This hotel performance metric assesses the total guest room revenue for a specific period versus the total amount of room revenue paid and occupied hotel rooms within the same timeframe.

Why is this metric important?

The ADR is useful to measure a property’s financial performance, as well as to compare the hotel’s performance to its competitors.

What is this metric?

This accounts for the average daily rooms revenue generated per available room. This metric doesn’t account for other revenue centers such as F&B, spa or retail. Average RevPar varies widely by market. As a hotel performance metric, it differs by market, segment and timing and is a time-based snapshot of a hotel performance.

Why is this metric important?

RevPAR represents the success the hotel is having at filling its rooms. Increasing RevPAR means either that rates or Occupancy Rate are rising, or both.

What is this metric?

Occupancy is a percentage of the available rooms occupied for a specific period. It is calculated as total paid rooms occupied divided by total available rooms.

Why is this metric important?

Usually, the higher the occupancy the better because the company is earning more revenue than companies with low occupancy. However, this may not always hold true if the company cuts prices to boost its occupancy. The rate is also key to the operational side of the business to ensure proper staffing and inventory.

What is this metric?

Gross operating profit per available room.

Why is this metric important?

The metric measures performance across all revenue streams. Hoteliers are able to see profit across all revenue centres/the sum of all the parts- not just rooms.