hotel profitability
The Road to Hotel Profitability: Adopting Flow Through + Flex Metrics
HotStats | July 17, 2024
When measuring hotel profitability, two key metrics stand out: flow through and flex. Flow through measures the percentage of additional profit from each extra dollar of revenue, while flex gauges the ability to save profit during revenue shortfalls. These metrics provide crucial insights into financial performance, offering a comprehensive framework for operational analysis. "Understanding flow through and flex is essential for any hotel aiming to optimize profitability and navigate economic fluctuations effectively," says Lisa Martin, Regional Director for Hotel Finance, at Davidson Hospitality. Integrating these metrics into your ana...
How To Get Revenue Management Right for 2024
Ahmed Mahmoud | March 11, 2024
By Ahmed Mahmoud The hotel industry is an ever-changing landscape, like many other industries, it has been unpredictable over the past few years, especially in regards to revenue management with unprecedented growth and innovation. From advanced reservation systems to personalized guest experiences, technological advancements have played a crucial role in shaping the way hotels, resorts, restaurant and others provide their services to customers. As we approach the year 2024, it is time to look ahead and explore How to Get Revenue Management Right for 2024 with the top trends set to further transform this dynamic industry, where the sec...
7 Tips for Making a Winning Business Case for a New Hotel Revenue Management System
Andrew Rubinacci | December 13, 2023
By Andrew Rubinacci, Chief Advisory Officer of FLYR for Hospitality A recent study by Regional Research Reports concluded that in 2022, the global Hotel Revenue Management Systems (RMS) market was valued at millions of USD and was projected to reach multi-millions of USD by 2033. And there are reasons we’re seeing such a rapid rise in demand: Next-generation RMSs. The many benefits of RMSs - particularly AI-driven RMSs - are clear. Hotels using AI-driven revenue management systems have seen a 20-30% reduction in labor costs. (Researchgate.net) Hotels that implement revenue management systems typically experience a 10-15% incre...
Driving Profitability With Precision: AI’s Pivotal Role in Revenue Management?
Andrew Rubinacci | November 30, 2023
By Andrew Rubinacci Revenue management systems play a critical role in the hospitality industry. Traditionally, these systems attempt to predict future demand from past trends to optimize pricing. That’s a reasonable approach. But as the pandemic taught us, relying on the past to predict the future doesn’t always work - the unexpected still occurs. Now, what if I told you it was possible to predict future demand based on current trends? How would that impact your pricing strategies? We’ve come a long way since the first RMSs hit the scene. And the recent advancements in artificial intelligence have made them more powerful (and rel...
U.S. Hotel Profitability Reflects Gains in Corporate Demand and Groups
CoStar Group | November 8, 2023
WASHINGTON – 8 November 2023 – A recent increase in U.S. hotel labor costs reflects a normalizing business mix and significant gains in group demand, according to September year-to-date P&L data from CoStar. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets. September 2023 YTD per-available-room metrics (% change from September 2022 YTD) GOPPAR: US$75.74 (+6.2%) TRevPAR: US$208.34 (+8.6%) EBITDA PAR: US$52.95 (+5.1%) LPAR (Labor Costs): US$69.36 (+13.1%) “September labor costs were higher than the summer months even though overall dema...
Baird/STR Hotel Stock Index Grew 6.2% in June
Baird | July 17, 2023
HENDERSONVILLE, Tennessee, and MILWAUKEE—The Baird/STR Hotel Stock Index grew 6.2% in June to a level of 5,615. "Hotel stocks extended their year-to-date gains in June as the broader market moved higher on fading recession fears,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Macroeconomic concerns have continued to subside, but recently normalizing leisure travel patterns domestically have weighed on the hotel REITs’ relative performance, particularly compared to the global hotel brands that are still benefitting from recovering international markets and cross-border demand.” ...
IDeaS Announces a New Partnership With Starhotels
IDeaS | July 13, 2023
IDeaS to help Starhotels maximise revenue and profit potential across Italy and the UK through the adoption of its flagship G3 Revenue Management System LONDON — July 13, 2023 — IDeaS, a SAS company, the world’s leading provider of hospitality revenue management software and services, has announced that Starhotels will deploy IDeaS’ G3 Revenue Management System (RMS) to improve revenue generation and forecasting at 28 of its properties across Italy and the UK. The rollout will allow Starhotels’ properties to compete equally with international brands backed by advanced technology and strong revenue management practices. Starh...
Key Middle East Markets Show Mixed Profitability in May
STR | July 10, 2023
LONDON— Among key hotel markets in Middle East & Africa, Jordan and Qatar realized the only month-over-month gross operating profit per available room (GOPPAR) improvements, according to STR’s May 2023 P&L data release. Jordan’s GOPPAR level reached US$66.77 in May, showing a significant month-over-month increase (+34.1%). That level was 106% of what was seen in May 2022, but was down from the 369% index reported in April. Qatar reached a GOPPAR of US$37.95, down 20.9% year over year. The market, however, saw a month-over-month jump of 39.0% and was one of the only markets to show an improvement in the i...
