Hotel Revenue Management can look like a big bowl of acronym soup: RevPAR, TRevPar, ADR, GOPPAR. Happily, there are a number of software systems available to help you sort it all out into a column labeled “Profit.”
First of all, let’s review what those acronyms mean:
- RevPAR – Revenue Per Available Room
- TRevPAR – Total Revenue Per Available Room
- ADR – Average Daily Rate
- GOPPAR – Gross Operating Profit Per Available Room
While these formulas look at maximizing revenue from several different angles, they all have one thing in common – time. The data generated won’t be very useful unless it’s used within the context of clearly defined time parameters. For example, comparing last week’s Tuesday through Thursday to this week’s Tuesday through Thursday, or to the Tuesday through Thursday exactly one year ago. You could look at a single day, or a whole month. Whatever you choose, make sure you’re comparing apples to apples.
Even if you’re a RevPAR wizard, a good hotel revenue management system will save time you can use to accomplish more tasks throughout the day. Some new systems on the market include:
- RevPAR Guru
RevPAR Guru offers an advanced revenue management module designed to help you increase online bookings, and easily determine pricing and distribution. Another module delivers reservations made by online travel agents (OTA), and a booking module to help you increase reservations made directly from your hotel’s website.
Billed as an “all-inclusive” hotel software package, InnRoad takes all the individual tasks a hotel manager needs to do on a daily basis – check competitors’ prices, monitor online travel sites for their latest special offers, and review historical data like ADR, RevPAR by room type, occupancy rates, and more – and streamlines the whole process to keep your hotel competitive within its local market. It even has tools to help you easily design and implement special limited-time room prices to help you capture and retain customers.
Need help choosing the right revenue management system for your hotel? We can help. Contact us today!