Set index in the Hotel Receipt effortlessly

Aug 6th, 2022
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How to Set index in the Hotel Receipt

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hey guys this is Daniel with Korea redjen and in this video I want to give you guys a very basic introductory lesson on how to read a star board so I know that the star board is very important for us as revenue managers to be able to gauge how we are doing compared with our competitive set that we talked about in the earlier video so your competitive set of hotels that most closely mirror the service level of your hotel and the quality of your hotel so with this video I want to touch on a couple points well talk about picking a correct comp set when it comes that is and also to will run over some of the vocabulary that you can need to know and some of the equations that youll need to know to be able to correctly interpret the star report so just to start here this is what a star report looks like it comes from a company called Smith travel and you can see that these star reports run on a weekly basis you will usually receive these on either a Wednesday or Thursday with most of the b

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Measures a hotels RevPAR performance relative to an aggregated grouping of hotels (i.e., competitive set, market or submarket, etc.). If all things are equal, a propertys RevPAR Index, or RGI, is 100, compared to the aggregated group of hotels.
Measures a hotels performance relative to an aggregated grouping of hotels (i.e., competitive set, market or submarket). We utilize indexes to measure performance in three key areas: Occupancy, ADR and RevPAR. An index of 100 means a hotel is capturing a fair share compared to the aggregated group of hotels.
The RevPAR Index, or revenue generating index (RGI) should be 100. This indicates your hotel is getting the expected, or fair, market share amongst the particular group of hotels.
How to increase hotel RevPAR? Adjust your hotel rates to demand. Alter rates during different seasons, days of the week. Offer different rates to customer segments (families, business travelers, etc.). Analyze the pricing strategies of your competitors to set optimum prices for rooms.
RevPAR is used to assess a hotels ability to fill its available rooms at an average rate. If a propertys RevPAR increases, that means the average room rate or occupancy rate is increasing. RevPAR is important because it helps hoteliers measure the overall success of their hotel.
RevPAR is considered a more useful metric because of the fact it doesnt only look at the daily rate, but also takes into consideration daily occupancy. That is because the more rooms you sell at a higher daily rate, the more revenue you generate, which is what any hotel should strive for.
An increase in a propertys RevPAR means that its average room rate or its occupancy rate is improving. However, an increase in RevPAR does not necessarily mean better performance. RevPAR fails to consider the size of a hotel. Therefore, RevPAR alone is not a good measure of overall performance.
The RevPAR Index, or revenue generating index (RGI) should be 100. This indicates your hotel is getting the expected, or fair, market share amongst the particular group of hotels.

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