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GDS and Niche OTA Power b. With consumer behaviours evolving, and the lines between tech platforms, marketing, and operations blurring, a modern strategy goes far beyond just listing rooms on online travel agents (OTAs). Pooled Inventory: Smart Inventory Distribution Forget manually allocating rooms to different OTAs.
But a lot of hoteliers have gotten stuck in a loop of constantly slashing prices, offering direct channel discounts, OTA promotions, and special rate packages to drive occupancy. The problem is, this can actually hurt your brand, lower rate integrity, and compress margins. That feels way more special, right?
Averagedailyrate (ADR) remains an important metric to talk about within the hotel industry. ADR, which stands for averagedailyrate, is the average income per occupied room your hotel makes in a set period of time. Table of contents. What is hotel ADR? Why is ADR important in the hotel industry?
The right sales tactics can help increase revenue, boost occupancyrates , and ensure guests have a positive experience. Maximize Direct Bookings to Reduce Dependence on OTAs When guests book through Online Travel Agents (OTAs) like Booking.com or Expedia, hotels often have to pay hefty commission fees, sometimes up to 20%.
Article Summary Dont Ignore Time Focusing on the Wrong Metrics Being Afraid of Change Not Utilizing Technology Fearing the OTAs 1. Too much focus on only Occupancy or your average room rate, will erode your business. Fearing the OTAs Understanding booking patterns must also include gathering data from OTAs.
What drives more value to the business, ADR, averagedailyrate, or occupancy? So what is it, Occupancy or Average Room Rate (ARR)? It boils down to something like this: ‘But if we would do 5% lower occupancy, at a 5% higher ADR, would we not make more profit?’ Which is it?
From searching to booking, guests are influenced by an average of 38 websites before making a reservation. Therefore, ensuring it’s easy for guests to book, whether direct or through third parties, is paramount to fulfilling a successful occupancy strategy and higher AverageDailyRate (ADR) goal.
A hotel ad is any paid placement used by a hotel to promote its rooms, offers or brand, typically through online platforms like Google Hotel Ads , OTAs (online travel agents), metasearch engines, and social media channels. That’s the impact of rate parity, and why it matters. What is a hotel ad? Each platform has its own rules.
What is occupancyrate? Occupancyrate determines how full your hotel is at any given time. Your property’s occupancyrate is one of the most important indicators of success. What is the formula for occupancyrate? Why is occupancyrate important?
Key findings from the 2025 report include: Dorms saw year-over-year occupancy growth in 2024, while private rooms dropped. Global averagedailyrates (ADR) for dorms declined by 1.7%, while private room ADR declined by 4% reflecting softening demand and increased price sensitivity.
What drives more value to the business, ADR, averagedailyrate, or occupancy? Occupancy or ADR? So what is it, Occupancy or Average Room Rate (ARR)? It boils down to something like this: ‘But if we would do 5% lower occupancy, at a 5% higher ADR, would we not make more profit?’
Introduction: The Hidden Revenue Killer for Hotels Did you know that hotels utilizing a mix of OTAs, metasearch engines, and direct booking strategies experience significantly higher revenue growth than those relying on a single channel? The key to higher occupancyrates and maximized revenue ? Why use niche OTAs?
This enables hoteliers to adjust room rates dynamically to maximize revenue based on current market conditions. An RMS that can sync seamlessly with various channels allows hoteliers to update room rates and availability across all platforms simultaneously, minimizing the risk of overbooking and ensuring maximum exposure to potential guests.
A few key hotel efficiency metrics that you should be tracking include: Averagedailyrate : ADR is the average revenue earned per occupied room per day. Maximising ADR helps a hotel increase revenue without needing to increase occupancy.
Additional data from SiteMinder’s Hotel Booking Trends indicated that the average length of stay is also on the rise, with 2022 recording longer stays than previous years. This was particularly true for Spain in summer, which had the longest average stay length in August.
Sales and revenue-related tax documents: VAT/GST/sales tax returns , documents on hotel/room occupancy taxes , tourism levies, merchant transaction reports for card payments. These practices can increase your occupancyrate, by ensuring maximum visibility across more booking channels. mortgage or loan interest statements.
That said, one has to ask: why are so many hotels’ margins still being eroded away by OTAs ? The growth of metasearch OTAs often outperform individual hotels in metasearch positioning and cost-per-click (CPC) performance. Some OTAs still use cached pricing.
Understanding future demand trends, their causes, and the guest segments driving them can help hotel revenue managers adjust room rates to boost occupancy and sales. The bold line represents the averageoccupancyrate for the competitive set. Each point on the chart shows a specific day’s occupancy for the hotel.
KPIs such as the Net Promoter Score (NPS) and customer satisfaction ratings provide valuable insights into what guests think about their experience. Driving Revenue Growth: Financial KPIs like Revenue Per Available Room (RevPAR) and AverageDailyRate (ADR) are essential for tracking your hotel’s financial health.
Prioritising your investments correctly will ensure your budget spend is contributing towards increased revenue and occupancyrates. With their scale and global reach OTAs provide hotels with a cost-effective way to increase bookings on a pay-per-performance basis. Your occupancyrates? Your direct bookings?
These metrics encompass a wide range of areas, from financial figures like revenue per available room (RevPAR) and averagedailyrate (ADR) to operational aspects such as occupancyrates and guest satisfaction scores. It can be calculated by multiplying your averagedailyrate by your occupancyrate.
Additionally, it includes reports on no-shows, occupancy, market analysis, company contributions, business analysis, MIS, and a manager flash report with budget details for comprehensive analysis. The report also offers insights into occupancy percentages, Revenue Per Available Room (RevPAR), and averagerates.
eCommerce sites include hotel websites and booking engines , online travel agencies (OTAs), metasearch engines , and other online platforms where hotels advertise and sell rooms. Metasearch advertising can be an effective way to reach these travelers, compete with OTAs, and generate direct bookings.
Rate shopping your hotel competitor rates gives you the opportunity to: Optimise pricing: Understanding competitor pricing helps you set competitive rates, maximising revenue without sacrificing occupancy. Identify pricing gaps: You’ll be able to spot chances to increase rates without losing market share.
Here’s a comprehensive guide to help accommodation providers optimize their efforts and maintain steady occupancyrates during economic downturns. Leverage OTAs and Metasearch Engines Optimized Listings: Ensure your listings on Online Travel Agencies (OTAs) and metasearch engines are complete, accurate, and appealing.
Meanwhile, nationwide hotel occupancy reached 67.5% in 2023/24—the highest in a decade—with averagedailyrates hitting an all-time high of ₹8,055. What does this mean for you as a new hotelier ? Opportunity—but only if you can navigate this red-hot market with the right strategies and tools.
Financial analysis When EBITDAR is combined with other metrics, such as ADR (averagedailyrate), occupancyrate, or RevPAR (revenue per available room) , it can help dig deeper into financial metrics. Improve marketing and distribution Optimize distribution channels to reduce sales commissions.
Some great use cases for AI include: Writing social media captions Writing website copy Writing OTA channel descriptions Writing ad copy Creating images for social media Writing SEO-optimized blogs (do section by section vs. the whole article at once for best results) 3.
Learn more Yield management vs revenue management The goal of yield management is not merely to increase room rates or occupancy; rather, it’s to maximise your hotel’s revenue by forecasting your room supply and demand across a variety of key factors. This strategy aims to ensure maximum occupancy.
To ensure they’re getting the best value for their money, trip planners are comparing hotel room rates on major OTAs and metasearch platforms before booking. For the hotel business, rate shopping is an integral part of a dynamic pricing strategy , providing valuable insights into competitor rates. Real-time data.
They help you understand percentage of rooms occupied, percentage of rooms occupied minus complementary and house use, averagedailyrate and total revenue of your hotel including POS,other charges, etc. You can run the report by check-in or checkout date.
Introduction: Why Hoteliers Should Understand Bidding Platforms As rate parity, OTA commissions , and last-minute booking behaviors evolve, hotel bidding platforms are changing the game. This approach helps fill unsold rooms quickly without broadcasting discounted rates on mainstream OTAs or brand.com websites.
This strategy is crucial for enhancing both occupancyrates and the averagedailyrate (ADR), directly influencing the hotel’s financial performance. Table of contents Why does hotel rate management matter? Higher occupancyrates : Pricing rooms correctly plays a pivotal role in driving occupancy.
It offers a suite of tools that allow you to manage your Expedia listings across various online travel agencies (OTAs) that are part of the Expedia Group. It allows you to manage bookings, adjust nightly rates, availability, and streamline inventory management. A particularly useful feature is the rate management tool.
After reading this article, you will learn how an effective analysis of your property’s booking performance will help you better understand your property’s demand patterns and how to leverage them to maximize revenue and occupancy. Occupancyrate indicates the percentage of utilization of hotel rooms.
When done effectively, personalization can help hotels earn more bookings, higher averagedailyrates (ADR) , and better online reviews. They typically reserve directly with the hotel or through an online travel agency (OTA) or travel agent at non-negotiated rates. Personalization comes from knowing your guests.
Now, you can make data-driven decisions based on understanding and leveraging, among other metrics, your averagedailyrate (ADR), revPAR, and occupancyrates—all without toggling off your Track screen.
The best channel managers allow you to seamlessly connect with all of your OTAs and channels, and give you clarity and control over all pricing. Channel management Optimise the revenue potential of all your booking channels with a dedicated solution.
The glaring issue with older revenue management strategies like these is that by selling at flat rates for the majority of the time, you are ignoring market conditions, competitor rates, market data, and variable demand. Prices change dynamically (hence the name) using real-time data to maximize your revenue and occupancyrates.
Leverage the power of OTAs. Have a higher averagedailyrate. Leverage the power of OTAs. For any hotel to gain mileage and drive bookings, online travel agencies (OTAs) and metasearch engines play a significant role. How to Select the Right OTAs for your Hotel? Use social media marketing.
Agoda is a renowned online travel agency (OTA) with a global reach, offering a platform for property owners to list their accommodations and attract potential guests from all over the world. Monitor & respond Keep track of your performance metrics on Agoda, such as occupancyrates, averagedailyrates, and revenue per available room.
While some of the popular sites like Booking.com and AirB&B are seeing a significant hit in interest, they have a unifying function which consumers appreciate, so with travel picking up once again, so will OTA bookings. COVID-19, however, has greatly thinned out the competition on such sites.
The uncertain economy, combined with the increased supply of vacation rental properties, not to mention more online travel aggregators (OTAs) and direct booking options, is creating more competition than ever among vacation rentals. His goals: ensure optimized pricing, increase occupancy, and grow overall revenue.
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