The revenue earned on a hotel property is commonly
measured as RevPAR (Revenue Per Available Room).
This metric is an indicator the overall health
of the property as it includes both utilization
(how full is the property) and realization (how
much is earned by each room per night). Not surprisingly,
total revenue can be increased by raising the
occupancy rate, or raising the rate per room.
Both of these factors, however, are related to
the perceptions of the hotel property in the marketplace.
To improve the perceptions of the property, TMA
focuses on two key areas, sales & marketing
and property presentation.
The sales & marketing initiative begins with
review the marketing plan for the hotel. Some
of the issues to be considered include;
• Who is your target market?
• What are their key needs?
• How do you address those needs?
• What is your Unique Selling Proposition?
• What media do you use to market your hotel?
• What is your tactical marketing plan?
• What kind of frequency/loyalty programs
are in place?
Property presentation describes the design and
physical condition of the hotel property itself.
Often, the perceptions of guests will be influenced
by the overall layout and decorating of the property,
but also by cleanliness, and the lack of visible
damage and tatter. While many of these aspects
are long-term capital decisions, simple changes
and adherence to cleaning and maintenance procedures
can often greatly improve the perceptions of guests.
Our experience with the standard procedures of
the preeminent hotel chains allows us to make
recommendations to improve the physical presentation
of the property.
Room utilization is, of course, increased by
more travelers visiting the hotel. Also, this
utilization can be impacted by the hotel procedures
themselves. When focusing on room optimization
we will consider issues such as:
• Frequency of planned empty rooms for major
maintenance
purposes
• Frequency of unplanned empty rooms for
emergency
maintenance purposes
• Room cleaning schedule optimization
• Number of customer complaints regarding
the initial state of
the room.
• Room optimization measurement systems
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