Are you putting too much emphasis on your hotel revenue strategy? Many hotel professionals miss an important fact: Your focus should be on overall hotel performance, not revenue alone.
In 2008, when the U.S. economy took a nosedive, Wall Street execs weren't the only ones panicking. Hoteliers across the country had to brace themselves for impact. On its face, the Great Recession that followed would mean less leisure and corporate travel, tighter wallets and empty rooms.
Average daily rate (ADR) is one of the most popular revenue metrics in the hotel industry. A key contributor to revenue per available room (RevPAR), it allows hoteliers to zoom in on how much a room is selling for on average and, typically, RevPAR growth driven by ADR is more profitable than RevPAR growth driven by occupancy, since the latter increases the variable costs associated with servicing additional rooms.
The hotel industry has long been obsessed with revenue. But if you care about a hotel's operational health, relying on revenue alone only tells one chapter of the whole story.
It's wild times in the UK. At least that's the perception of this here Yankee. Regardless of politics, ever since Jan. 20, 2017, the U.S. has been on a rambunctious ride of its own, and now, with the appointment of Boris Johnson as UK prime minister on July 24, 2019, the UK has gotten to join in the rollicking fun, as the calendar moves closer to Oct.