While analysing in the hospitality sector, the occupancy indicates the number of rooms that are occupied by the customers (Sturman, Corgel & Verma, 2011). The performance of hotel is found by checking the percentage of available rooms and the beds that are booked. It is necessary to keep track about the bookings regularly this helps hotel manager to calculate the average daily rate and check the future demand.
The formula for calculating the occupancy is done by simply applying the following formula:
Occupancy (OCC) = Number of rooms that are sold/ Available number of rooms
ADR stands for average daily rate, which is also known as KPI that is basically used to measure the performance of hotels. The average price of each room is calculated everyday so that it is sold accordingly(Landman, 2018). ADR is a factor that is used by hotels to improve their performance so that revenue and profit margins could also be increased.
The formula that is used for calculating the ADR is:
ADR= Revenue of the room/Total number of rooms old
Revenue per available room is denoted by RevPAR, it is one of the important factors to calculate the key performance of the hotel. It is a key factor that is used to determine the revenue earned by a hotel at a specific time period (Landman, 2018). The performance can be evaluated by comparing the figures calculated using PrePAR and the computed set of the hotel.
The formula that is used for calculating RevPAR is as follows:
Revenue per available room = Rooms revenue / Number of rooms available
The STR report of hotel can be calculated by following three findings that helps in analysing the hotel performance and conditions (Chathoth, Ungson, Harrington & Chan, 2016). Listing the three key findings:
From all the above analysis, it can be concluded that the performance of hotel is up to make and good enough from all the other competitors in terms of revenue and occupancy. The best performing days of hotel is Sunday and Monday to Thursday (Enz & Thompson, 2011). The occupancy of hotel is poor on Friday which reduces the ADR ratio. This future decreases the revenue of the hotel and lowers the market PevPAR. It was found that on weekends and Friday the occupancy of room was high but still the revenue is less as compared to other days. If discussing the fact about Saturdays and Sunday it is found that occupancy was high as compared to other days but it was lower that the market (Enz & Thompson, 2011).
The reason behind the bad performance of these days was less demand in the market or less number of customers arriving at the hotel. The other reason is related to the service that was provided by the hotel, the high quality service was not offered due to rush and more demand (Carr,Ruhanen & Whitford, 2016). The service was not up to the mark due to which the daily rates were increased. Thus, the overall performance of hotel was affected by such conditions.
There are many ways through which performance of hotel can be evaluated, one such way is through STR report and other ways through which action plan could be decided and performance could be improved are listed below:
Yield management deals with reaching to the right customers at the right time with the correct product (Dhiman, 2016). Some of the yield management techniques that are used to improve the overall performance are discussed are:
Some of the stakeholders to which these strategies need to be communicated are as follows:
Aside from the rooms, the two territories where yield administration techniques can be connected are the marketing department and the sales departments that aim to bring most recent innovation in the hotel. Procedures that can be utilized in these two zones:
References
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Baum, T., Cheung, C., Kong, H., Kralj, A., Mooney, S., Ramachandran, S., … & Siow, M. L. (2016). Sustainability and the tourism and hospitality workforce: A thematic analysis. Sustainability, 8(8), 809.
Berry, S., LaGreca, A., & Bruynzeel, P. (2018). Using Data & Texting to Increase Retention: A Success Story at the Oregon Tech Institute of Technology.
Budeanu, A., Miller, G., Moscardo, G., & Ooi, C. S. (2016). Sustainable tourism, progress, challenges and opportunities: an introduction.
Buhalis, D., & Amaranggana, A. (2015). Smart tourism destinations enhancing tourism experience through personalisation of services. In Information and communication technologies in tourism 2015 (pp. 377-389). Springer, Cham.
Carr, A., Ruhanen, L., & Whitford, M. (2016). Indigenous peoples and tourism: The challenges and opportunities for sustainable tourism. Journal of Sustainable Tourism, 24(8-9), 1067-1079.
Chathoth, P. K., Ungson, G. R., Harrington, R. J., & Chan, E. S. (2016). Co-creation and higher order customer engagement in hospitality and tourism services: A critical review. International Journal of Contemporary Hospitality Management, 28(2), 222-245.
Dhiman, M. C. (Ed.). (2016). Opportunities and Challenges for Tourism and Hospitality in the BRIC Nations. USA: IGI Global.
Enz, C. A. (Ed.). (2010). The Cornell school of hotel administration handbook of applied hospitality strategy. California: Sage.
Enz, C. A., & Thompson, G. (2011). The Hotel Competitor Analysis Tool (H-CAT): A Strategic Positioning Tool for Managers. Cornell Hospitality Tools, 2(3), 6-12.
Gretzel, U., Sigala, M., Xiang, Z., & Koo, C. (2015). Smart tourism: foundations and developments. Electronic Markets, 25(3), 179-188.
Ladkin, A., & Buhalis, D. (2016). Online and social media recruitment: Hospitality employer and prospective employee considerations. International Journal of Contemporary Hospitality Management, 28(2), 327-345.
Landman, P. (2018). Revenue Management Strategies. Retrieved from https://www.xotels.com/en/revenue-management/revenue-management-strategies-for-hotels
Papadopoulos, N., & Hamzaoui-Essoussi, L. (2015). Place images and nation branding in the African context: Challenges, opportunities, and questions for policy and research. Africa Journal of Management, 1(1), 54-77.
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