STR, the leading global provider of research to the hotel industry, recently released its U.S. Q3 2014 results and hoteliers nationwide should be extremely pleased with the results. The industry’s three key performance metrics all reported year-over-year increases. Occupancy rose 3.8% to 70.3%; average daily rate (ADR) increased 5.2% to $117.91; and revenue per available room (RevPAR) jumped 9.2% to $82.93. While all of the reported figures are impressive, the RevPAR results definitely stand out from the crowd.
To provide additional context for these historic results, Bobby Bowers, senior VP of operations at STR, noted, “Third-quarter RevPAR growth of 9.2 percent was the highest quarterly growth rate since the first quarter of 2006 and the highest third-quarter growth STR has ever recorded. The strong RevPAR increase was driven primarily by ADR… STR anticipates full-year 2014 U.S. industry RevPAR growth of around 7 percent.”
The message these results send to owners and operators is that the hotel industry is healthy and will most likely continue to provide opportunities for the foreseeable future. However, even with these record-setting performances, hotels that are not prepared for success will not reap their full share of rewards.
As a leading online hotel management system provider, operators across North America trust innRoad technology to manage and maximize the performance of over 15,000 guestrooms. With our knowledge of hotel operations, industry trends and consumer insights, we have developed the most advanced online hotel management system in the marketplace. Comprised of four, fully integrated hotel-specific management tools, Property Manager, Booking Engine, Global Distribution and Hotel Revenue Manager, and complemented with our premium customer service, innRoad prides itself as a true solutions provider for hotel owners and operators.
In helping our clients achieve their operational and financial goals, we have developed best practices for attaining RevPAR growth. We believe that consistently executing operational tasks at high levels allows mangers to get the most out of their hotels, both on-property and online:
When guests arrive, they want a room that’s available, clean and complete with its advertised features. Though reasonable expectations, quickly preparing rooms for new guests shortly after others have checked-out presents challenges for housekeeping teams, especially during high occupancy periods. However, hoteliers cannot afford to allow room unreadiness to impact the guest experience. When this occurs, guests request new rooms – which affects inventory, stay with competitors and leave negative feedback on social media and sites like TripAdvisor. All of these factors, individually and collectively, can have a severe impact on future bookings and RevPAR growth.
With innRoad’s online hotel management system, our Property Manager streamlines responsibilities and organizes critical information so team members remain aligned. Comprehensive reporting, including housekeeping updates, provides the front desk with accurate data so managers can track inventory in real-time and guest expectations are met every time. And with innRoad’s Access Anywhere platform, managers can logon to our online hotel management system from anywhere with an internet connection and stay in control of their property’s performance.
Rate and revenue management
Room rate management is an inexact science that has an enormous impact on hotels’ financial performance and long-term viability. On a daily (or sometimes hourly) basis, managers work to set “perfect” rates that are competitive in the local market, attract new and returning guests, help the hotel reach optimum occupancy and, ultimately, capture the maximum amount of revenue from each reservation. Rate management can consume hours of an operator’s time, but, of course, this is just one of their many daily responsibilities.
When operators power their hotels with innRoad’s online hotel management system, our Hotel Revenue Manager simplifies the rate and revenue management processes. innRoad streamlines performance and property data, including RevPAR, ADR and occupancy, rates, room and bed types, and historical information for fast access, analysis and adjustment within our easy-to-use system. And after determining the “perfect” rates, operators can seamlessly publish updates across all reservation channels, including Online Travel Agents and Booking Engines, at once – saving time that can now be spent taking care of guests.
Attaining RevPAR growth requires the consistent execution of many important operational responsibilities on a daily basis. With innRoad’s online hotel management system, hoteliers can better manage these tasks, align team members across various functional areas and ensure their property is performing at the highest level. Starting at just $150/month, innRoad makes hotel management affordable, so RevPAR growth results in maximum profitability. Register for a free, 14-day trial with innRoad today.