Ch.4: Hotel Guest Cycle & KPIs

Hotel Guest Cycle & Key Performance Indicators (KPIs)

Hotel Guest Cycle

A guest cycle describes what a guest goes through during 5 stages:
Pre-arrival 1.) Enquiry
2.) Reservations
3.) Confirmation
Arrival 4.) Arrival
Stay 5.) Registration/check in
6.) Transfer to room
7.) Inhouse
Departure 8.) Settlement of account
9.) Departure


Read more for reference: http://wiki.answers.com/Q/What_is_guest_cycle_in_context_with_hotel_industry#ixzz1KvCDNqAC

Hotel KPIs


Hotel KPIs help organisations understand how well they are performing in relation to their strategic goals and objectives.

They also provide the most important performance information that enables the hotel or their stakeholders to understand whether the organisation is on track or not

1. Percentage of Occupancy

  From the above statistics, it is nearly 75%-85% of occupancy rate for all categories. It is high  overall. The occupancy rate in 2009 has decreased compared to last year. However, high tariff B hotels and medium tariff hotels have higher occupancy rate than tourist guesthouses and high tariff A hotels. It means that customers would like to choose medium level hotels.

When hotels are divided by distract, hotels in Mong Kok and Yau Ma Tei are the highest occupancy rate. It implies that they prefer to stay in some hotels with good transportation.

2. Average Daily Room Rate (ADR)

 s Revenue increases overall

s No relationship between occupancy rate and average daily room rate

s Relationship between occupancy rate and revenue is positive

3. Customer Origin

Higher occupancy rate and revenue:

sHong Kong: increased business from the cooperate and wholesale sectors by individual visiting scheme

sTokyo: aggressive pricing strategies

sShanghai: Shanghai World Expo, improved food and beverage income

sBeijing: an improvement in commercial activities at the Chinese capital

         àMore domestic customers make consumption

Lower occupancy rate and revenue:

sBangkok: The state of emergency imposed by government