Performance trends within the hospitality industry are pointing to a prosperous, multi-year run for hotel owners and operators across all segments. In their annual Trends® in the Hotel Industry publication, PFK Hospitality Research reports that in 2013, on average, U.S. hotels experienced a 5.4% increase in total revenue with only a 3.7% rise in operating expenses, which resulted in a 10.1% increase in annual profits. These findings show that hoteliers were able to deftly grow revenue, keep expenses low and allow more dollars to flow through to the bottom line. As these trends continue, PFK Hospitality Research projects U.S. hotels will achieve five consecutive years of double-digit profit growth through 2015.
This is great news for hoteliers nationwide. After a disastrous dive in 2009, business and leisure traveler confidence has been restored and the industry is currently reaping the benefits. While these industry findings are positive indicators for future success, owners and operators should also use this information to examine their hotels and decide if they are positioned to benefit from this profitable upswing.
To gauge their performance, hoteliers should ask themselves:
- Did my hotel experience an increase in total revenue in 2013?
- Did I keep operating expenses low enough?
- Was I profitable in 2013? More profitable than 2012?
- How is my hotel’s performance trending in 2014?
With greater industry-wide profits projected for the near future, hoteliers should be able to favorably answer all of the questions above. If not, operators must find a solution to enhance their operational performance or risk missing out on this opportunity for profitability.
As a partner to the hospitality industry, innRoad has a deep understanding of the complexities of hotel management. The combination of converting demand into revenue while keeping rates attractive and expenses low is the ultimate balancing act. While operating a hotel will never be simple, innRoad provides hotels with a technology solution for streamlining operations, maximizing performance and putting hotels on their path to profits.
innRoad’s cloud-based software provides operators with the tools to manage their most critical functions within one, all-inclusive hotel property management system (PMS). Our hotel PMS supplies operators with four core operations management tools: Property Manager, Booking Engine, Global Distribution and Revenue Manager.
innRoad’s Property Manager allows operators to spend less time completing routine tasks, like check-in, check-out and billing, and more time building lasting relationships with guests. Our Booking Engine and Global Distribution services immediately enhance the online presence for hotels and creates new opportunities for revenue-generating bookings. And innRoad’s Revenue Manager monitors and optimizes important metrics, such as Revenue Per Available Room (RevPAR) and Average Daily Rate (ADR), to ensure hotels are performing efficiently and realizing their potential.
innRoad’s hotel PMS includes additional features, such as our Access Anywhere platform that allows operators to access innRoad via the internet from wherever the workday takes them, operational performance reports provide real-time status updates, multi-location flexibility integrates multiple properties into one system and best-in-class data security keeps sensitive information safely secured in the cloud.
Our goal is to help operators maximize performance and profitability, so we offer our industry-leading hotel PMS for a low as $150/month. Contact us today to learn more about how our all-inclusive hotel PMS software can position your hotel for success.