5 hot air balloons with one rising higher than the other reflecting the importance of benchmarking to hotels

After record-breaking disruptions to the global hotel industry, traditional year-over-year comparisons have been rendered far less actionable when benchmarking hotel performance data.

NB: This is an article from STR

During the Hotel Data Conference: Global Edition, on 25 March, STR’s Jesper Palmqvist and Isaac Collazo presented their top tips for how to benchmark most effectively as the industry recovers from the global pandemic.

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Index to an anchor point

Go beyond last year and pick a pre-pandemic time as your benchmark comparable. For example, you could compare May 2021 data to May 2019 to look at what percentage of RevPAR you have recovered.

Go beyond last year

Index your progress against your comp set or market

By looking at how your hotel was performing compared with its comp set in 2019 against how it stacks up now, you get a more complete picture of your current performance.

Index your progress

Consider weekly benchmarking

Through looking at week-over-week change, you may see that declines are lessening on a weekly basis, or that you’re getting closer to how that week performed in 2019.

Week-over-week benchmarking progress

Group hotels in other ways

Separate hotels by size, quality, etc. to see how your portfolio is performing compared with other hotels in those categories. Identify where recovery is happening the fastest and where to prioritize your efforts.

group by occupancy

Micro benchmarking – work with the KPI that matters most

Look at occupancy or ADR by day to identify trends on weekdays vs. weekends, which can help make decisions like when to offer discounts.

Micro benchmarking

Utilize future data for a view of the full circle

When looking ahead at occupancy on the books, you may discover your hotel is ahead of its comp set. Or you may discover that planned bookings end up falling through later. Forward-looking data provides a different benchmarking lens to help you ask the right questions.

Looking forward

Look at total accommodation reports

It is essential to know what’s going on in the total marketplace. By broadening your view, you can identify where you might be losing occupancy—perhaps to accommodation types beyond hotels.

benchmarking total accommodations

These are just a handful of suggestions to help you benchmark as you navigate 2021 and beyond.

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