How to Map Performances of Hotels

Sheer volume of responsibilities makes management of a successful hotel chain very challenging. There are so many things to take care of. Managing a large team can be tiresome. It can be quite difficult to take out time for performance reviews. But reviewing the performance every hotel is vital in this competitive world. That’s why Hotel Empire Bangalore lays emphasis on different Key Performance Indicators (KPI).

Below are the four most important Key Performance Indicators of hotels.

Online Rating

In a digital world, reviews alone can decide any business’ fate. Anybody would pick a hotel that has positive reviews and shun the one with poor ratings. But this is not the only reason why online ratings are important. Critical feedbacks are priceless; they give an insight into areas where services can be improved.

MPI (Market Penetration Index)

MPI is occupancy results of one hotel versus the average occupancy of its competitors in a region. MPI is great for mapping a hotel’s regional dominance. But it’s not the best indicator for measuring overall performance. A hotel can increase its occupancy rate by bringing down prices but it might suffer from low revenue by doing so.

Advertising ROI

Measuring Return on Investment (ROI) from promotions and advertising can save wastage of money, and weed out ineffective promotions and ads. Online advertising makes it easy to track money that’s being spent on promotional activities.

ADR (Average Daily Rate)

ADR (Average Daily Rate) is simply measured as the average price paid per room on a given day. It works very well in isolation as an ongoing performance metric. ADR is most useful when compared to previous seasons or periods to identify performance. ADR also helps hotel managers in deciding whether prices can be lowered or increased.

The most important performance indicator for Hotel Empire Bangalore is customer satisfaction. We believe no business can be successful if it’s not getting thumbs up from the mass it serves. Perhaps that’s why we are able to excel in the tough and competitive world of hotels.

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Originally published at on August 30, 2016.