You want to enhance your Hotel Revenue Management without compromising the guest experience. How do you increase your revenue while maintaining your renowned hospitality? One way is by monetising unused parking spaces, thereby improving the parking experience for your guests, which benefits everyone involved.
Earlier, we discussed how optimising your front office operations can save up to 8 hours of work per week and how to enhance the guest parking experience effortlessly. Combining these strategies presents a significant opportunity to improve your Hotel Revenue Management. Instead of cutting costs and affecting the guest experience, you generate additional income.
What is Hotel Revenue Management?
Hotel Revenue Management involves optimising your pricing, room availability, and hotel offerings to maximise total revenue. The aim is to provide the right room to the right guest at the right time, at the right price, and through the right distribution channel. This process utilises key performance indicators such as WTP, RevPAR, ADR, and GOPPAR.
Willingness To Pay (WTP)
WTP represents the highest amount a guest is willing to pay for a room. For instance, a luxury suite in central London during a major event will command a higher WTP than a room located 15 miles away during the off-season.
Revenue Per Available Room (RevPAR)
RevPAR calculates the average daily revenue per available room. It is determined by dividing the total room revenue by the number of available room nights in a given period.
Example: If a hotel with 100 rooms generates €10,000 in one night, and all 100 rooms are available, the RevPAR is €100 (€10,000/100 = €100).
Average Daily Rate (ADR)
ADR measures the average price paid for rooms sold. It is calculated by dividing the total room revenue by the number of rooms sold.
Example: If you earn €10,000 from 80 rooms sold, the ADR is €125 (€10,000/80 = €125).
Tip: RevPAR accounts for both room price and occupancy rate, while ADR focuses solely on revenue from sold rooms. ADR shows the average price guests pay per night, whereas RevPAR highlights opportunities to optimise room rates and occupancy.
Gross Operating Profit Per Available Room (GOPPAR)
GOPPAR evaluates the operational performance of your hotel. It is calculated by dividing the hotel's gross profit by the number of available rooms.
Example: If your hotel makes a gross profit of €5,000 with 100 rooms available, the GOPPAR is €50 per room (€5,000/100 = €50).
Boost your RevPAR with Parking Management (PMS)
Enhancing your Hotel Revenue Management is achievable by increasing RevPAR through effective parking management solutions. A parking management system (PMS) simplifies parking operations while providing insights into potential revenue opportunities.
With a PMS, you can offer guests and others the ability to reserve parking spaces. This system tracks reserved and vacant spaces, allowing you to make empty spaces available to non-hotel guests, thereby generating extra income from otherwise unused spots.
Parking management generates additional income in two ways:
Easier guest parking = higher satisfaction
Simplifying parking for guests enhances their satisfaction, leading to more positive reviews and potentially attracting more guests, thus increasing revenue.
Rent out empty parking spaces to others
Unused parking spaces can be offered to other interested parties who are willing to pay for them, generating additional income for your hotel.
Toogethr helps
Interested in how a parking management system works? Toogethr specialises in smart solutions that improve guest experiences while generating additional revenue by selling empty parking spaces to others. We optimise the availability of parking spaces by analysing data in real-time, predicting occupancy, and providing the insights you need. Transform your unused parking spaces into a new revenue stream, enhancing your hotel's performance without sacrificing the guest experience. Request a demo or get in touch with one of our parking experts.
