Excerpted from HSMAI’s new Best Practices Guide: Data Analytics — Hospitality Sales and Revenue Management.
CHALLENGE: Even with the useful, high-quality information provided on STR Analytics’ Pulse Report, it can be difficult to quantify the RevPAR gap between a hotel and its competitors, partly because of the report’s PDF format.
SOLUTION: Interstate Hotels & Resorts worked with a third party to create a tool — a workbook in Microsoft Excel — that allows the company to take RevPAR data from a STAR report and RevPAR gaps from a Pulse Report to quantify performance gaps, putting a dollar amount on the variant between different competitors in a hotel’s set. Then the hotel can use that information to adjust its strategies with the goal of closing those gaps and gaining market share.
RESULTS: This gives a hotel a lodestar to steer toward. If the property learns that it’s ranked fourth in its set of five and there’s a $77,000 gap to the hotel ranked third, for example, it now has a sense of how much revenue is necessary to close the gap — and possibly even move into second position.
TAKEAWAY: “Since the Pulse Report doesn’t provide the specific number, we get as close as our eyeballs see it from the graph data. With this visual snapshot, we created calculations to quantify the revenue needed to close the gap and the approximate RevPAR index for each ranking.”
— Kim Snow, CRME, CHDM, Vice President of Revenue Strategy, Interstate Hotels & Resorts