Setting the right priorities for 2021: Your hotel KPI’s (Guest Post)
First, a quick word from me, Jenn! 👋 My mission for this blog is to share helpful resources and tips for hoteliers like you. Hotel marketing is my wheelhouse — but there are more and more folks in the hospitality industry sharing their expertise on the interwebs right now.
I’ve always been taught that the rising tide lifts all ships. Because of this, I’ve recently started accepting occasional guest posts here on Five Star Content!
These posts are not sponsored or compensated in any way.
I am only accepting articles that are super-relevant to you and other readers. Most of the time, I’ll aim to publish guest authors who cover topics I don’t really get into as much, like Maria Malaniia’s excellent piece about hospitality hiring practices.
Today’s guest post comes from the content team at Oaky, a hotel tech provider that also happens to share tons of useful, relevant articles on their own blog. (Psst, I’ve mentioned them before on my list of top hotel blogs and websites!)
As we face a multi-year recovery timeline, one question we’re all struggling to answer is this: Where should hotels look to measure performance in 2021? Is it average daily rate or revenue per occupied room? How about KPIs related to hotel guest experience?
Read on below for Team Oaky’s insights into the hotel KPIs your property may want to focus on in 2021.
This is a guest post by the content team at Oaky.
Going into 2021, we’ll be taking an optimistic stance and hoping, along with the rest of the world, that the worst is behind us. Once travel restrictions lift we can all do our part to allow tourism to flourish once more, in a controlled and careful manner.
While the last year has certainly been a struggle, our industry has risen to the challenge with unrivalled determination to keep hotel businesses afloat.
Our approaches to running hotels have shifted considerably, resulting in significant matured standard operating procedures, staff management and utilization of hotel tech.
The foundations of hotel businesses have changed, so it only makes sense to review the ways in which hotels measure success as well.
Key Performance Indicators For Hotels in 2021
The threat of COVID infection still looms large, and with less staff on board at many hotels, hoteliers have more to worry about than ever. Operational challenges aside, the hospitality industry is made up of humans that are also vulnerable to the virus and we mustn’t forget this.
In order to ascertain what can be deemed an acceptable business standard in these drastically altered conditions, it would be advisable to return to your guiding KPIs and review them in light of new conditions in the hospitality industry.
There’s no doubt about a distinct need for priority adjustment.
Average rates and regular occupancy are out of the question and nonetheless have taken a backseat to the need for safe and hygiene-conscious hotel operations, which actually benefit from fewer guests.
RevPAR’s prominence as a leading signifier of success is fading, while Net Operating Income (NOI), Gross Operating Profit Per Available Room (GOPPAR) and Total Revenue Per Available Room (TRevPar) are KPIs being shown to yield effective results when optimized and given proper attention in recent months.
In the end, there isn’t a single metric that will ensure your hotel’s survival through the pandemic.
A holistic approach to optimizing your hotel’s performance that recognizes individual successes from various KPIs will not only keep your business afloat but allow you to celebrate smaller victories to keep morale high.
After all, a sense of optimism can make all the difference in situations like these.
Head to the Oaky blog for a full rundown of hotel KPIs that are truly worth focusing on in the new year, including a helpful explanation of each KPI and their significance in the current climate plus key things to remember when optimizing them.
This is a guest post by the content team at Oaky.
