Author: Reza Karbaschian
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What is Yield Management?
Yield Management is a pricing strategy used primarily in industries with perishable inventory, such as hospitality and airlines. It focuses on selling the right product (e.g., hotel room or flight seat) to the right customer at the right time, for the right price, to maximize revenue. Yield management optimizes revenue by balancing supply and demand,…
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What is an Online Travel Agency (OTA)?
An Online Travel Agency (OTA) is a third-party platform that allows travelers to search for, compare, and book accommodations, flights, car rentals, and other travel-related services. Popular OTAs include Booking.com, Expedia, Hotels.com, Airbnb, and Agoda. These platforms act as intermediaries between hotels and travelers, making it easier for hotels to reach a global audience. Role…
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Why Should Hotels Increase Direct Bookings?
Direct bookings are reservations made directly with the hotel, bypassing third-party intermediaries like Online Travel Agencies (OTAs). Encouraging direct bookings provides several benefits: Strategies and Best Practices to Increase Direct Bookings 1. Optimize the Hotel Website 2. Offer Exclusive Perks for Direct Bookings 3. Invest in Digital Marketing 4. Leverage Loyalty Programs 5. Improve Communication…
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Free Room Upgrade Strategy
A free room upgrade strategy involves offering a guest a higher-category room at no additional cost. This strategy is typically used to enhance the guest experience, manage inventory effectively, or foster loyalty. While it may seem counterintuitive to give away a premium room for free, it can offer strategic benefits when used wisely. Why Offer…
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Upselling
Upselling in the hospitality industry refers to the practice of encouraging guests to upgrade their current booking or purchase additional premium services or amenities that enhance their stay. It is a key strategy to increase revenue per guest while also improving their overall experience. How Upselling Works Upselling is typically offered during: Examples of Upselling…
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Occupancy Rate
Occupancy Rate is a key performance metric in the hospitality industry that measures the percentage of available rooms in a hotel that are occupied over a specific period. It is a fundamental indicator of a hotel’s operational efficiency and demand. Formula for Occupancy Rate Occupancy Rate=(Total Rooms SoldTotal Rooms Available)×100\text{Occupancy Rate} = \left( \frac{\text{Total Rooms Sold}}{\text{Total Rooms Available}} \right) \times…
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Revenue Per Available Room (RevPAR)
Revenue Per Available Room (RevPAR) is a crucial metric in the hospitality industry that measures a hotel’s ability to generate revenue from its available rooms. It provides a more comprehensive insight into a property’s performance by combining both Average Daily Rate (ADR) and Occupancy Rate into a single figure. Formula for RevPAR RevPAR can be…
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Average Daily Rate (ADR)
Average Daily Rate (ADR) is a key performance metric in the hospitality industry that measures the average revenue earned from each available room in a hotel, per day. It is an essential indicator of a hotel’s pricing strategy and helps assess the overall financial performance of the property. Formula for ADR: ADR=Total Room RevenueTotal Number of Rooms Sold\text{ADR} = \frac{\text{Total Room…
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Key Performance Indicator (KPI)
Key Performance Indicators (KPIs) are measurable values that help organizations track and assess the performance of specific activities or goals. They serve as quantifiable metrics to evaluate success over time in achieving strategic objectives. KPIs are used across various industries to ensure that efforts align with desired outcomes. Characteristics of a Good KPI: Types of…
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Guest Satisfaction Score (GSS)
Guest Satisfaction Score (GSS) is a metric used in the hospitality industry to measure how satisfied guests are with their overall experience at a hotel or property. It provides actionable insights into areas where service can be improved, enhancing guest loyalty and driving repeat business. How GSS is Measured: GSS is typically calculated through feedback…
Reza Karbaschian 