There is no yardstick to success, but the benchmark is the minimum standard that needs to be maintained to stay competitive in the global market. Throughout the year the hotel business may not yield the best results. However, learning from the best practices and metrics and emerging successful is crucial for any business. Particularly in the highly competitive hotel industry, to stay competitive in the market, you should reach the benchmark set by the industry. Hoteliers usually believe in a higher occupancy rate and generating a good amount of revenue. Unlike other businesses, the hotel industry relies on dynamic pricing; they have to be smart enough to make timely decisions. Smith Travel Research helps hoteliers make quick decisions based on real-time competitor sets of data.
This elaborative post discusses the real metrics of the Smith Travel Research report, which compares any given property’s performance with real-time information about competitors (Rev PAR and ADR).
Smith Travel Research presents you with the actual metrics, with real figures. If you are doing well, your score marks are above 100; if they are below 100, you should analyze where you are going wrong and improve faster.
Let us explore more about these metrics and how exactly the score helps hoteliers design a plan to meet their goals and industry standards.
What is the Smith Travel Research Report, or STR Report?
The Smith Travel Research Report is the world’s most popular benchmarking tool in the hospitality industry. It gives a clear picture of your property in the competitive business landscape. It doesn’t step into the customer’s journey, but it calculates your property’s ADR and Rev Par with a set of competitors’ data.
STR picks the 3-5 hotels based on your property’s standards. If it is a 3-star property, it also picks the same hotels within the limits of your geographical location.
Three Key Performance Indicators of Property
The Smith Travel Research report considers three key performance indicators for calculating the STR report. Occupancy Rate, Average Daily Rate, and Revenue Per Available Room.
Formulae to Calculate Key Performance Indicators for a Property
Occupancy Rate = Number of Rooms Sold / Rooms Available * 100
Average Daily Rate (ADR) = Rooms Revenue / Rooms Sold
Revenue Per Available Room = Rooms Revenue / Rooms Available
STR makes use of the three KPIs to calculate any property’s performance in the market. A group of competitors’ occupations, ADR, and Rev PAR are calculated, and data is analyzed against those figures.
These numbers speak exactly to the gaps that need to be covered by the hotelier in the market. Prepare a long-term marketing strategy, improve services, and consider many other aspects. Increase revenue by selling a greater number of rooms.
The number of rooms sold by your competitors speaks to the volume of opportunity in the hospitality business. As the competitor data set is based on market segmentation, you have a greater opportunity to perform better on a global scale.
STR Index: Above 100 or Below 100
Seasonal fluctuations are quite common in the hotel industry. But business intelligence solutions like STR stand as a ray of hope for revenue managers worried about slow business during unseasonal conditions. The benchmark index gives valuable insights through simple scores.
Check the index during the Smith Travel Research Index accurately; if your score is above 100, then you must be happy about your performance. If it scores below 100, Then you have to fill the gaps with new marketing strategies and attract guests with discounts and attractive pricing. You can check the performance of the property yearly, monthly, and weekly.
Hoteliers can also create long-term plans by comparing the index and figuring out the areas for improvement.
Smith Travel Research reports are available as per the subscription from the service provider.
How do I see STR reports in Nimble Hotel Accounting Software?
Smith Travel Research Report can be easily configured in the Nimble Hotel Accounting Software. The reports can be imported into the software, which gives detailed analytics of hotel performance. The scores can be easily read on the intuitive dashboard of the Hotel Accounting System.
Smith Travel Research Report is a global company serving clients across 15 countries, including North America and other regions. The report reveals the property’s score based on real-time occupancy rates. It is the best tool to learn and overcome challenges in the day-to-day business of the property. Implement changes that bring drastic changes to the property’s performance.