The hotel industry is highly competitive. Every hotel must constantly attract new customers and keep existing customers happy. But how do you actually know if the hotel is on the right track? The answer lies in the so-called KPI (Key Performance Indicators). In this article, we’ll introduce you to the most important KPIs for hotels and explain what they mean!
- Term and meaning
- Why are KPIs important?
- How to create your own hotel key figures
- How to improve your hotel KPIs
Term and meaning
KPIs are metrics that help measure a company’s success or failure in specific areas. KPIs can be defined in a variety of ways, but in general they are numbers that measure a company’s progress against a specific goal or strategy. In the hotel industry, there are many different KPIs that can be used to measure the success or failure of a hotel.
Why are KPIs important?
It is important that you know which KPIs (Key Performance Indicators) are relevant for your hotel. This is the only way to ensure that you are running your hotel effectively and efficiently.
But before we start with how you can create your own hotel KPIs, let’s first ask ourselves the question: Why are KPIs important in the first place? The answer is simple: KPIs are important because they help you measure your hotel’s performance. They tell you whether your hotel is successful or not. But the benefits of KPIs don’t end there. These metrics also help you identify and address weaknesses in your hotel. They can also help you achieve your hotel’s goals.
How to create your own hotel key figures
Now that you know why KPIs are so important, let’s start with how to create your own.
There is no right or wrong way to create KPIs. All that matters is that you choose the ones that are relevant to you and your hotel. So first, you should think about what aspects of your hotel you’d like to measure. For example, do you want to measure revenue? Or the number of bookings? Or guest satisfaction? Once you know what you’re looking for, you can start creating your KPI.
If you’re unsure where to start, you can always take a look at other hotels’ KPIs. These can give you some good guidance and ideas. But remember, what works for other hotels won’t necessarily work for your hotel. So find out which KPIs work best for you and your hotel. To help you get started, here are some examples of possible KPIs for hotels:
– Revenue per available room (RevPar)
– Average Daily Rate (ADR)
– Occupancy rate
– Number of bookings per month
– Number of cancellations per month
– Average length of stay of guests (Average lenth of stay, ALOS)
– Average tip per guest
– Online reviews
How to improve your hotel KPIs
1. Focus on your strengths
Every hotel has its own strengths and areas of focus. If you know which areas of your hotel are the most successful, you can focus on them and direct your efforts to further improve those areas. This will help you increase your overall performance and achieve better results in terms of your KPI.
2. Keep your finger on the pulse of time
The hotel industry is a fast-paced business and it’s important that you keep your finger on the pulse. This means that you should be regularly updated on the latest trends and developments in the industry. If you know what’s going on in the industry, you can better decide how to position and market your hotel. This way you can ensure that your hotel is always attractive to potential guests. 3.
3. Check your numbers regularly
It is important that you check your numbers regularly to make sure you are on the right track. This means that you should keep a close eye on your revenue figures. If you find that your sales are stagnant or declining, you need to investigate why this is the case. Often it can be helpful to bring in outside consultants to get an objective look at your numbers and find solutions to any problems.
4. Listen to your guests
Your guests are one of the most important indicators of your hotel’s success or failure. Therefore, it is important that you listen to their opinion and try to understand their needs. You can do this in a number of ways, such as conducting regular surveys or talking to guests in person. When you know what your guests need and want, you can plan accordingly and make sure they are satisfied. Satisfied guests are likely to return and recommend your hotel to others – which means you can generate more revenue.