hotel revenue
How Much Wellness Actually Impacts Hotel Revenue
Book4Time Inc. | August 26, 2024
With wellness tourism booming and more hotels and resorts implementing wellness programs, what does it all mean in terms of hotel revenue? The Wellness Real Estate Report 2024 by RLA Global, with statistical support from HotStats, offers some answers to this question. The report evaluates hotel performance in 2023 using data from P&L benchmarking company HotStats, which covers more than 11,000 hotels worldwide. Hotels are broken down into three categories: Major wellness: annual wellness and leisure revenue exceeds US$1 million or more than 10% of total hotel revenues. Minor wellness: annual wellness and leisure revenue is l...
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...
From Base Stays to Premium Experiences: How AI Is Redefining Ancillary Revenue Generation for Hotels
Leo Barrit | May 29, 2024
By Leo Barrit Artificial intelligence (AI) is more than just a buzzword; it's a transformative tool that can revolutionize the hospitality industry. Its practical use can empower hotels to anticipate guest preferences, tailor services accordingly, and deliver them through the right channels. This not only enhances the guest experience but also opens doors to increased profitability. However, it’s crucial to understand and navigate the challenges and considerations of implementing AI to align with a hotel's business goals. The economic gains from AI are not to be underestimated. A study by PwC predicts that the most significant boosts ...
Fun Thoughts on How Wellness Can Be Aided by GenAI
Adam and Larry Mogelonsky | May 15, 2024
By Adam Mogelonsky, Larry Mogelonsky In the ever-evolving landscape of hospitality, the shiny new toy that is cutting-edge technologies will forever be promulgated as revolutionizing guest experiences and operational efficiency. One such technology that has garnered significant attention is generative AI (GenAI), led by the much-hyped-yet-actually-useful ChatGPT. While discussions abound regarding the transformative potential of AI for the far-off future, it's crucial, though, for seasoned hoteliers and industry executives to focus on practical applications that deliver tangible benefits here and now. One area where we can have some fun...
Management Company Compensation Slows in 2023
Robert Mandelbaum and Tim Dick | May 8, 2024
By Robert Mandelbaum, Tim Dick Prior research conducted by CBRE Hotels Research revealed that hotel management companies were rewarded handsomely as the U.S. lodging industry recovered from the COVID-19 pandemic. An analysis performed by CBRE in April 2023 found that total hotel revenue increased by 153% from 2020 to 2022, while Gross Operating Profits (GOP) grew by 437%. This resulted in a 68% increase in the fees paid to management companies and brought management fees back to pre-pandemic levels. The increases in fees were largely due to the improved performance of U.S. lodging properties, which in turn triggered the payment of incentiv...
Wherever You Go, There Is Artificial Intelligence
Klaus Kohlmayr | April 24, 2024
By Klaus Kohlmayr It’s a daily occurrence to see mentions of Artificial Intelligence (AI) throughout multiple industries, including the hotel space. And why not? AI systems can effortlessly perform tasks associated with the cognitive functions of humans, and rather than reducing jobs, AI applications seek to enhance employment opportunities. The hotel industry is one of the most promising business sectors that can leverage the power of AI. This is due to the ongoing processing of vast amounts of data to better understand the underlying demand patterns or elevate pricing strategies. AI is also a growing opportunity to improve business ...
74% of Global Markets Increased RevPAR to Start 2024
CoStar Group | February 27, 2024
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Hospitality Revenue Management: 10 Ways To Boost Hotel Income in 2024
EHL | February 7, 2024
Despite signs of recovery in 2023, the hospitality sector's 2024 outlook is unpredictable. Deloitte's Hospitality Industry Outlook 2023 identified the hospitality sector's key challenges for 2024 as a drop in consumer confidence, continuing labor shortages, and the inability of hotels to raise prices despite escalating costs. However, by leveraging strategic hospitality revenue management, hotels can navigate these hurdles and even drive revenue growth in the coming year. While the effectiveness of these hotel revenue management strategies will vary by location, audience and the economy; here are ten effective ways to increase your hotel'...
