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Inflation, labour issues, and rising cost to meet the needs of an increasingly tech-savvy and sophisticated guest journey. Is there anything more pressing on the minds of hoteliers, preventing them from having sleepless nights thinking about how to bring down their hotel`s cost and keep their business afloat? With an ever-increasing amount of cost-associated challenges in our industry, this topic couldn't have been addressed at a better time. From our perspective as a hotel revenue management consulting company, we see both challenges as well as opportunities for hoteliers. The key is taking action in an adequate and timely manner, prioritising the right initiatives that truly make a difference. Cost can always be reduced, but how does it impact your day-to-day operations, and how does this reflect on your guest experience? Want to know how to turn cost issues into a competitive advantage? Keep reading our article on how to approach this multi-faceted issue.
Today's traveler's journey is more fragmented than ever. With the recent proliferation of new travel super apps, distribution Goliaths such as Google and Expedia updating their ranking algorithms at a frantic pace, and the seemingly unstoppable growth of metasearch engine traffic, building and executing an effective hotel marketing strategy can seem intimidating. Maintaining a holistic, cross-channel approach is essential and always is highly-recommended by our hotel management company.
What is the meaning / definition of Modified American Plan or MAP in the hospitality industry? The term Modified American Plan (MAP), refers to a booking [...]
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Need to know what a hotel investment term means? Look it up in theย XOTELSย Glossary. With our expertise as a hotel revenue management consulting company, we explain definitions, terminology and industry lingo in [...]
Managing a hotel is not an easy nor a straightforward job, and hotel owners can often benefit from external hotel revenue management consulting services. The main goal of hotel consultants is to assess the current situation and develop a customized solution based on the clientโs needs to improve the business performance.
Operating Expense Ratio
Using this KPI can help you evaluate whether an investment is worth your time by giving insight into how much it costs to manage / maintain the project. How?ย By taking the operational cost and rental income into account you will be able to compare the ratio (ideally under 80%) to make a well-informed decision for your investment opportunity. This step canยดt be overlooked and our hotel revenue management consulting company always recommends calculating the Operating Expense Ratio to ensure the full potential and financial health of your projects.Payback Period
To start, our hotel management company always recommends determining the actual payback period, otherwise known as break-even, is essential for a real estate investment project and can help to pick better projects with a fast payback period. This can be achieved by determining the number of years it will take to pay back the amount invested.Tenant Turnover
This real estate KPI informs you at what rate your tenants are leaving, and will typically be calculated on an annual basis. Our hotel management company highly suggests knowing the tenant turnover rate will help you gain insight into which of your projects has a more stable tenant cycle. The lower the turnover rate the better since:Average Rent Price Per Property
As the name suggests, the KPI 'Average Rent Price Per Property' helps to keep track of your rental prices and is typically measured and recorded across various timeframes (i.e. weekly, monthly, quarterly and annual changes).ย Our hotel management company emphasizes on comparing the performance against the same period last year is crucial to ensure you're on the right track to create a successful investment project. You can also easily compare against other properties with this metric and see where opportunities are for your property.
About the Author:
As CEO and Founder of XOTELS, Patrick Landman has made it his mission to turn hotels and resorts into local market leaders. XOTELSยด diverse expertise and deep-knowledge across revenue management consulting, hotel management, and hotel consulting, enables us to drive results for independent boutique hotels, luxury resorts, and innovative lodging concepts. Below you will find opinion articles written by Patrick Landman.