How Do You Increase RevPAR?

What affects hotel occupancy?

The occupancy rate of your hotel is based on the number of rooms you have filled.

Think of your hotel occupancy rate as a percentage of rooms booked for that night.

When you have a lot of booked rooms you have a high rate of hotel occupancy.

A lot of empty rooms means a lower rate..

How do you increase ADR?

What is ADR & how to identify opportunities to increase itEffectively manage your online reputation. By improving guest satisfaction and managing your online reputation you can increase overall revenue and ADR. … Create a unique experience. … Offer something extra. … Know your guests. … Understand how you compare to competitors. … Utilize big data.

How can I raise my hotel arr?

Strategies to increase your hotel ADR:Keep watch on competitors. … Set optimum pricing. … Promote local tourism and events. … Offer packages and promotions. … Prioritize your distribution channel. … Attract more direct bookings. … Personalize services with guest self-service portal. … Provide complimentary services to guests.More items…•

What is RevPAR formula?

It’s quite easy to calculate RevPAR. Simply multiply your average daily rate (ADR) by your occupancy rate. … The other way to calculate it is by dividing the total number of rooms available in your hotel with the total revenue from the night. In a 300 room hotel, 70% occupancy equals 210 rooms occupied.

How can the management team address the problem of low ADR?

How can the management team address the problem of low ADR? They need to train, and train hard. The employees don’t really know what they are selling, and that makes it nearly impossible to sell. They need to train them on every single good or service they offer so they will be able to sell more and raise the ADR.

How can I promote my hotel?

10 Smart Hotel Marketing Strategies to Increase BookingsTip #1: Be Easily Searchable Online!Tip #2: Remarket, Remarket, Remarket.Tip #3: Ensure You’re Targeting the Right Audience.Tip #4: Allocate More Marketing Budget During Peak Booking Seasons.Tip #5: Provide Incentives to Get People Interested.Tip #6: Build Local Partnerships.More items…•

What is average room rate in hotel?

ADR (Average Daily Rate) or ARR (Average Room Rate) is a measure of the average rate paid for the rooms sold, calculated by dividing total room revenue by rooms sold. Some hotels calculate ARR or ADR by also including the complimentary rooms this is called as Hotel Average Rate.

Can RevPAR be higher than ADR?

RevPAR vs ADR? Revenue per available room is a better measure of success than ADR is. This is because ADR does not take into account occupancy. You could charge $1000 per night for your hotel rooms (ADR = $1000) but if you only sell 1 room-night a year you haven’t been very successful.

Which is more important ADR or RevPAR?

RevPAR is generally considered the more important metric because it takes into consideration both daily rates and daily occupancy. … For example, if ADR is rising but occupancy is falling, hotels may earn a lot from each room but make fewer profits overall.

How do hotels increase low season sales?

This can be showcased by reasons like climate, season, festival, etc. via social posts or ads and suchlike. Also, tempt them by talking about the various other opportunities they would get like low airfares, special discounts, other offers running in the city, etc. during the off-season months.

What is RevPar index?

RevPar Index, is a measure that originates from RevPar. It focusses on comparing your hotels RevPar with the RevPar of the hotels in your competitive set. … The RevPar Index is able to show you what your variance is relative to your competitors and what the gap itself is worth.

How do you calculate RevPAR change?

RevPar is calculated by multiplying a hotel’s average daily room rate by its occupancy rate. It is also calculated by dividing total room revenue by the total number of rooms available in the period being measured.

What is the difference between ADR and RevPAR?

There are two important indicators: ADR or ARR (average daily rate or average room rate) and Revpar (revenue per available room). … ADR or ARR: it is the average price of each room sold per day. Revpar: it is the average price of each available room per day, per month or per year.

Is ADR and ARR same?

What’s the Difference Between ADR and ARR? While ADR measures the Average Daily Rate, ARR is the Average Room Rate calculation, which tracks room rates over a longer period of time than daily. ARR can be used to measure the average rate from a weekly or monthly standpoint.

What is ADR growth?

Average Daily Rate (commonly referred to as ADR) is a statistical unit that is often used in the lodging industry. The number represents the average rental income per paid occupied room in a given time period. … It is common in the hotel industry for the ADR to gradually increase year over year bringing in more revenue.

Is RevPar a percentage?

The acronym stands for “revenue per available room.” In a simple example: If my hotel was 60 percent occupied last night and my average rate was $100, my RevPAR would be $60 (100 x . … At 60 percent that means I had 300 rooms occupied and I will multiply that by $100 to get my room revenue (300 x 100 = $30,000).

What is the STR Report for hotels?

Developed by the hotel management analytics firm Smith Travel Research, the STR report is a benchmarking tool that compares your hotel’s performance against a set of similar hotels.

Why is RevPAR so important?

RevPAR is used to assess a hotel’s ability to fill its available rooms at an average rate. If a property’s RevPAR increases, that means the average room rate or occupancy rate is increasing. RevPAR is important because it helps hoteliers measure the overall success of their hotel.