June 2, 2023

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How Inflation Trends are Impacting Restaurants

A few missed dollars of ADR can leave money on the table

Hoteliers looking to push average daily rate (ADR) might not realize there is opportunity to ratchet it up even more. It’s not an indication of skill set or effort, but more about not knowing what they don’t know.

But you can find out just how much by yourself. SkyTouch has developed a clever calculator tool showing how much potential there is for hoteliers to push rates. When you visit the SkyTouch calculator* you can simulate how just a few dollars difference in ADR can mean a big change to your total revenue during the course of a year.

The calculator is a snap to use. Just enter in your hotel’s room count, current ADR and average occupancy. Then type in the ADR you would like to achieve, and see how much more you could make.

For example, for a small 65 room hotel with a current ADR of $75 using the industry average of 70% occupancy, a $10 lift in rate can bring an extra $13,650 annually, the equivalent to 47 week’s pay based on current federal minimum wage employee rate. That’s nearly one full year of work for just thinking about rate a little differently.

Plus, customers using SkyTouch’s Hotel OS® real time rate management features find it a breeze to operate.

For example, a  Canadas Best Value Inn brand hotel in Alberta reports that changing Best Available Rate level, or adding a special event, can be an easy way to help increase results. This specific hotel reports seeing rates booked at up to $20 more for the last 15 rooms, compared to how much other rooms on the same night sold for.**

This hotel also recognizes that many times people select a hotel because of a myriad of factors other than price. Potential guests may have heard great things about the hotel, or that it’s in a very convenient location, or they want to attend a special event and aren’t as price sensitive because of it.

Additionally, a modern PMS system with automated rate management across all channels, in which a hotel appears, helps hoteliers avoid setting each rate one at a time.

“I don’t need to change the rates manually anymore, I just need to click one button, raise that rate or decrease that rate. I don’t need a lot of technical support to do it. SkyTouch Hotel [OS] rate management is awesome and really fast for increasing revenue,” says Darren Yang, the general manager of the Stanton Inn and Suites, Stanton, CA.

We encourage you to explore the complimentary rate calculator. Take a few moments and discover how much even the smallest change to your ADR strategy can mean to the overall health of your property. Try it today by clicking here.

 

*These calculators are for illustrative purposes only and are designed to be informational and educational tools only, and do not constitute financial or legal advice. The default figures shown are hypothetical only and may not be applicable to your individual situation. The calculations and results are based on a range of stated assumptions, as well as the figures you input, and are intended as hypothetical estimates only.  Your individual results will vary. Do not rely on these calculators when you’re making decisions about financial or legal matters. Instead, we strongly recommend that you seek the advice of a financial services or legal professional. Choice Hotels International, Inc. and Skytouch Technology, and their affiliates, expressly disclaim all liability and responsibility to any person who relies, or partially relies, on anything done or omitted to be done by these calculators, as well as any decisions or actions taken in reliance upon or as a result of the information provided by these tools.
***Past performance is not an indicator of future results.  Individual results may vary.