Why are other hotels’ room revenues better than yours? Is it caused by service level, price, facilities or brand impression?
There are many factors that we can discuss for increasing room revenues.
You may plan to purchase a software to do the customer analytics and try to convert your customers to prime members and try to get more revenues from these prime members.
Before you start to purchase new softwares, please check the plans that others made to save your money and make adjustments from time to time.
Analyzing your hotel may include many factors like
- Price Analysis
- Customer channel analysis (hotel counter, OTA, travel agency, member, vendor)
- Is the number of popular room types sufficient for customers?
- Why do customers like this hotel?
- Why do customers dislike this hotel?
- Why do customers like other hotels? (Where does the competition analytics come from?)
- Why do customers dislike other hotels? (Where does the competition analytics come from?)
Try to chat with your customers and analyze competitors’ information, we can know several key factors for customers staying in hotels.
Then use these key factors to strengthen the advantages of your hotel and increase revenues of your hotel.
Some factors can’t be changed like location of the hotel, the total number of rooms, the size of the room, the swimming pool, and the year the hotel was established.
Some factors that can be improved include sound insulation, service, food quality, reception process, hardware facilities, and price.
There are several key points to consider when choosing a competitor:
- Hotels with the same hotel star.
- Similar geographical location.
- The hardware facilities of the hotel are similar (the number of rooms that can be sold in the hotel, the number and size of meeting rooms.. etc).
- The software facilities of the hotel are similar (the response time of the guest request, the breakfast price, the quality of the meal, the types of hot dishes, the types of cold dishes, and the types of snacks).
- The composition of customers is similar.
- Hotels on the same page or previous pages on the OTA may steal your customers.
In the era of big data, how can we use big data to help hoteliers do market strategy surveys and research.
This is not a new topic, because in China, many online travel agencies have already cooperated with companies with AI data analysis capabilities.
For example, the combination of Ctrip.com and Baidu AI can analyze a lot of useful data.
In fact, in China, some five-star hotels also cooperate with Baidu’s AI to conduct in-depth customer analysis.
The object analyzed this time is located in the best part of Taipei City, Taiwan, where life functions are convenient, and the mass rapid transit transportation is also very developed.
There are many large-scale attractions, night markets, parks, cultural and creative parks, museums, etc.
When viewing with Google Map, there are 20 five-star hotels within the owner’s hotel.
Including the well-known Shangri-La Hotel, Sheraton Grand Hotel, Sheraton Grand Hotel, W-Hotel, MANDARIN ORIENTAL Hotel, etc.
The following factors need to be considered when evaluating your hotel and competing hotels:
- Check-in analysis (night stay, family room, double room)
- Price analysis (unit price of room type)
- Tourist attractions (number of tourist attractions, evaluation scores of tourist attractions, number of tourist attractions evaluation, distance to tourist attractions)
- Reputation (ratings, number of reviews), such as oversized bed, quiet room, bathtub, free movies, free Wi-Fi, fast check-in, mini-bar, computer)
- The ranking gap on the OTA (If you rank on the same page on the OTA, the orders will be taken away from each other. For example, for the same day’s order, as long as the hotel is ranked on the same page as yours, it is your competitor)
Regarding revenue, there are several formulas related to revenue management:
- Room Occupancy Rate (Occupancy:OCC)=(Sold Room Number/Total Room Number)*100%
- Average Daily Rate=Room Revenues/Total Sold Night.
- Average Room Revenue (Revenue Per Available Room)=Room Revenues/Total Room Number.
- Market penetration index (MPI), which means the hotel’s share in the competitive area = the hotel’s occupancy rate / the average occupancy rate of the competitive business area.
- Average room price index (ARI), which measures the relationship between hotel revenue and price = average hotel room price/average room price in competitor areas.
- The Market Comprehensive Index (RGI), which measures the comprehensive competitiveness of the hotel in the competitive area = the hotel’s single room revenue/the single room revenue in the competitive area.
The following are hotels in the competitive area.
Le Méridien Taipei
Courtyard by Marriott Taipei
Kimpton Da An Hotel
Sheraton Grand Taipei Hotel
Shangri-La’s Far Eastern Plaza Hotel, Taipei
Mandarin Oriental, Taipei
Evergreen Laurel Hotel, Taipei
Renaissance Taipei Shihlin Hotel
Grand Victoria Hotel
Grand Hyatt Taipei
The Okura Prestige Taipei
Taipei Garden Hotel
The Landis Taipei
San Want Residences Taipei
Grand Mayfull Hotel Taipei
Palais de Chine Hotel
Humble House Taipei
The Fullon Hotel Taipei Central
W Taipei W Taipei
The Howard Plaza Hotel Taipei
The Grand Hotel Taipei
The following is a reference based on the data on the free tool OTAminer.com,
Since OTAminer.com is still in the development stage, much data is still incomplete.
I hope that OTAminer.com can have more complete data as soon as possible to make the report more complete.
The winning hoteliers are as follows:
- Check-in performance: The Grand Hotel
- Price performance: Mandarin Oriental
- Tourist Attractions performance: Not enough data
- Reputation performance: The Grand Hotel
- Ranking on OTA: Not enough data
- Room Occupancy Rate (Occupancy/OCC) performance: Not enough data
- Average Daily Rate performance: Mandarin Oriental
- Average room revenue (Revenue Per Available Room) performance: The Fullon Hotel Taipei Central
- Market Penetration Index (MPI), which indicates the hotel’s share of the competitive area: Not enough data
- Average Price Index (ARI), which measures the relationship between hotel revenue and price: Mandarin Oriental
- Market Composite Index (RGI), which measures the comprehensive competitiveness of hotels in the competitive zone: The Fullon Hotel Taipei Central