Essential Reporting Strategies to Maximise Your B&B Revenue
Managing revenue and maximising profit is one of the most important tasks for any B&B operator, and it’s one of those items that is never truly complete.
NB: This is an article from Little Hotelier
By collecting data on a regular basis and frequently evaluating the results through accurate reporting methods, you will have a better understanding of how you can improve your revenue management strategy and increase your profits.
Why is B&B Reporting Useful for Revenue Management and Increasing Profit?
High-quality and accurate B&B reporting offers insight into the overall success of your business. When you run the right reports at your property on a regular basis, you will have a better understanding of the results of your revenue management strategy. You also will be able to clearly see how and when you can begin to increase your profits.
How Can B&Bs Get Access to These Reports?
There are a variety of reports B&B owners and managers should run on a regular basis, including the transactions report, the booking channels report and the statistics report.
Thanks It would be challenging — if not downright impossible — to manually generate these reports on a consistent basis, which is why it is necessary for B&B operators to invest in the right property management technology. Selecting an all-in-one business solution will provide you with access to these reports along with many other valuable tools.
Data Sets and Metrics to Monitor
- Average Daily Rate
Known in the industry as the ADR, this metric is calculated by dividing the amount of room revenue earned by the number of rooms sold over a specific period of time. It’s one of the most important metrics because it provides insight into the average amount that a guest is paying per room at your B&B.
- Revenue per Available Room
Commonly referred to as the RevPAR, this metric is calculated by dividing the revenue generated at the B&B during a specific time period by the number of available rooms during that same time period. The RevPAR metric gives an instant glimpse into the general success of the hotel by highlighting the potential profits.
- Gross Operating Profit per Available Room
Sometimes called the GOPPAR, this metric is calculated by dividing the gross operating profit of the hotel by the number of rooms within the property. This metric indicates the success of a B&B property by showcasing the earning potential of the B&B.
How Can Metrics Be Used to Increase B&B Revenue?
Tracking metrics allows you to have an analytical understanding of the success of your B&B. The results that are generated from these metrics will help you see where improvements can be made, and you can continue to use the metrics to track the results of your improved revenue management strategies. With the right reporting tools, you’ll notice a steady increase in your revenue.
There are many B&B strategies that can be used to manage your revenue and increase your profits — all you have to do is figure out the right strategies for your specific property.