MyDigitalOffice, in collaboration with Stayntouch and Revenue Analytics, has released “The Hotel Profit Playbook: Data-Driven Strategies to Move Beyond Rooms Revenue,” a special report aimed at redefining the way hoteliers approach profit management.
The Hotel Profit Playbook introduces the concept of Total Profit Optimization, which it defines as the act of broadening operational strategies to include focus on all the revenue-generating areas in a hotel, and then measuring the flow-through of each of those outlets to determine optimal profitability.
In recent years, hotel owners and operators have shifted from top-line data collection and analysis to making more decisions around driving bottom-line margins. Understanding labor and amenity costs, analyzing non-room revenue trends and centralizing data from all revenue sources provides hospitality leaders with the right data to make more profitable decisions.
Key insights in the report include:
- Implementing a more holistic revenue analysis that goes beyond rooms revenue.
- Applying revenue management principles to ancillary outlets like F&B and spa services.
- How TrevPAR could fundamentally reshape hospitality thinking.
- Understanding and measuring profit margins at each outlet across a property.
- Centralizing data to empower hoteliers to make more profitable decisions.
“I think hoteliers are ultimately going to want to focus on areas where you can manage expenses better,” said Raquel Ortiz, director of financial performance at STR, in the report. “Rooms and F&B are definitely more labor intensive and have more expenses tied to it, but [with] golf and spa, which are more experiential, you can control the labor a little bit more and you can have larger markups on the products.”