Read the measures together
Occupancy describes how much available room inventory was sold. Average daily rate describes room revenue per sold room; revenue per available room combines rate and occupancy. Keep definitions consistent and account for rooms that are unavailable. These measures do not on their own show the hotel’s profit.
Look at the cost of the booking
Review commission, campaign costs, discounts, included benefits and cancellations by channel. Compare like periods and guest segments. A booking that looks more valuable at the headline rate may contribute less after its associated costs.
Turn the review into a decision
Choose a specific question for the week: whether to adjust an offer, change an inclusion, improve conversion or stop a weak campaign. Document the change and the conditions around it. Use the hotel’s actual revenue data; illustrative figures in a sales pitch should never be presented as achieved results.
PUT IT INTO PRACTICE
- Agree a shared definition for each metric.
- Compare revenue with acquisition costs.
- Record decisions and evaluate their results.
What to observe
Use contribution alongside occupancy, average daily rate and revenue per available room.
An introductory working framework. Adapt it to your property, your guests and the responsible team’s requirements.