A 2019 performance review of hotels scattered across the length and breadth of the country shows that despite the demand-supply equation favoring growth in most hotel markets, the nationwide numbers (both occupancy and average room rate) has barely moved. Though the growth was recorded across all performance metrics, it wasn't reflective of an up-cycle, the way one would expect. So, post-hypothesis, it was found that 'hotels are just not making offers that can't be refused’; i.e. not alluding to simply dishing out great deals or attractive packages.
The easiest conclusion one may draw is that these hotels are in very strong markets, with negligible weekday-weekend seasonality. However, the fact is that all of them are based in urban corporate markets, where the industry's claim has traditionally been that weekends are lean. Yet, these hotels have ducked the trend and performed well on weekends, without which achieving an occupancy in the high 80s or 90s as a year-round average is not mathematically probable.
The last time our industry saw a meaningful growth in the nationwide average daily rate (ADR), almost three-fourths of the hotels were clocking 70% plus occupancies. The industry will truly reap the benefits of this up-cycle only when a large majority of existing hotels consistently push their rates, and subsequently, the revenues northward.
The Hotelivate report presented three broad thoughts for you to toy with from a revenue optimisation standpoint:
1. A singular strategy could impact long-stay or weekend demand: Rather than making just the daily ADR the threshold, the daily target revenue can be the deciding factor. This, when achieved, should shift the focus to the weekly revenue figure, eventually resulting in higher year-round occupancy.
Denne historien er fra March 2020-utgaven av Hotelier India.
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Denne historien er fra March 2020-utgaven av Hotelier India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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The Big Fat Indian Wedding
With a slew of initiatives, hotels are ensuring that the wedding day is special for the couple as well as for the hotel's bottom line.
An Organization Of Rainmakers!!!
Rainmakers are revered for their ability to generate income (rain) for an organization by cracking deals, attracting clients/guests and holding on to them; often, for a lifetime... Revenue generation (rainmaking) is the job of everyone on the team.
Hospitality: A Rewarding Career Awaits
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The Essence of Landscape Architecture
Innovative landscaping can enhance the luxury hospitality experience by enriching guest interaction with the natural world.
Teaching the Art of Tea
The first global tea artist from India, teaching the art of making and drinking fine tea, Susmita Das Gupta talks about her mission to make Indian specialty tea reach a global audience.
Feeding Profits
Food and beverage is driving revenues in hospitality in novel ways as hotels innovate with new-age experiences.
Acing the Revenue Game
Hotels are looking at new avenues to generate revenues that go beyond rooms and food.
The Power of Predictive Maintenance
A strategic approach to enable Indian hotels to become leaders in sustainable hospitality.
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To mark the occasion of World Environment Day this month, we find out how the hospitality industry is paving the way for a greener, healthier tomorrow...
