Tracking metrics is important in any industry to measure success in terms of revenue, guest satisfaction, and profitability. Adding tools like guest messaging platforms that integrate with other technologies such as PMS systems can help increase direct booking, guest satisfaction, and in turn, overall revenue

Overview of key metrics

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There are a lot of factors to track the health of a property in hospitality, but these are the essentials:

• Occupancy (OCC)

The average occupancy rate (OCC) measures how “full” a hotel is, at any given time. It is measured by taking the number of occupied rooms and dividing that by the number of total rooms at the property—for example, 50 rooms occupied divided by 100 total rooms multiplied by 100 would make the occupancy 50%

• Revenue Per Available Room (RevPAR)

Calculated by multiplying the average daily rate (ADR) by the occupancy rate (OCC), RevPAR most importantly reflects a property’s ability to fill rooms at a consistent rate.

• Average Daily Rate (ADR)

Sometimes referred to as “heads in beds,” the Average Daily Rate (ADR) indicates the average revenue generated per occupied room on a given day. It is a key indicator of performance in the industry and is calculated by taking room revenue and dividing it by total number of rooms sold.

• Length of stay (LOS)

The average length of stay (LOS) is how many nights a guest stays at the property, from arrival to departure. This can fluctuate quite a bit, depending on the season or demographic of guests at the property. A longer LOS is better for profitability, since it reduces room turnover cost.

•  Guest satisfaction 

More qualitative than quantitative, but arguably the most important is guest satisfaction. If guests aren’t having a good experience and rating a property accordingly, all the other key metrics are going to suffer. From guest service to amenities, there’s a lot that goes into ensuring satisfaction for every stay—and lots of ways to measure it. Guest engagement, repeat stays, and spending on site are just a few. 

Want to learn more about key metrics for hospitality? Download our Ultimate Guide to Hospitality Metrics.

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Hospitality guest messaging 

All of these key metrics are ultimately driven by guest satisfaction and NPS (net promoter scores). In other words, if people are happy with their stay, they’ll tell their friends and family, in turn creating more demand. 

One of the best ways to drive higher guest satisfaction is through digital guest engagement, such as hotel texting services: Providing a channel of communication completely digitally to engage with real humans has proven to increase employee efficiency, heighten the guest experience, and overall raise those key scores.

Whether a guest needs a few extra towels and doesn't want to make a trip to the front desk, or is experiencing an issue with the room, guest messaging gives both the guest and hotel teams a chance to resolve the issue before it becomes a bad review. 

An example of how hospitality texting can improve satisfaction scores can be seen in SALT scores, the guest satisfaction metric for Hilton properties. When surveyed in 2021, hundreds of Hampton Inn properties that use hospitality messaging through Kipsu reported on average a 10% increase in overall guest satisfaction. 

In fact, across all global partners, Kipsu has seen on average a 10.5% lift in overall service once a property adds hotel texting as an offering.

Increasing guest satisfaction can in turn increase direct booking and overall revenue—repeat customers, guest engagement with the brand, and increased spending on site all derive directly from guests enjoying their experience and further increasing a property’s profitability. 

Want to learn more about increasing satisfaction scores with hospitality texting? Schedule a conversation with our team today.