KPI’s Revenue Management for hotels; the top 3 Experts Really Use to Drive Profitability

Driving your profitability in the most efficient manner is a challenge that all hotels face. But here at Xotels, we have found that there are certain key performance indicators (KPIs) that are particularly powerful. Some of the commonly used KPIs include Average Room Rate (ARR), Bedroom Occupancy Rate (OCC) and Cost per Occupied Room (CPOR). But, in this article we focus on the three hotel revenue management KPIs that experts use to maximise profitability in particular.

These are:

Gross Operating Profit Per Available Room (GOPPAR)

Net Revenue Per Available Room (NREVPAR)

Total Revenue Per Available Room (TREVPAR)

Hotel KPIs are essential towards maximising your hotel’s profitability. They provide unique insights into the performance of a number of crucial criteria across your hotel. They also help you to understand the results of your revenue management strategy effectively. Furthermore, hotel revenue management KPIs help you to set and measure financial goals. It is these goals that help drive your hotel’s growth and profitability.

The 3 Hotel Revenue KPIs that will Drive your Profitability Goals

1. Gross Operating Profit Per Available Room (GOPPAR)

GOPPAR offers one of the most effective methods of measuring your hotel’s performance. It’s that simple. We recommend that it be front and centre of your measurement strategy. It gives you a detailed holistic view of your hotel’s entire revenue management process. It shows you where you can make adjustments towards improving your top line growth as well as aligning it with your bottom line too.

GOPPAR allows you to view the value of your hotel as an asset at any time – together as an operating business and real estate property.

The GOPPAR formula: Gross Operating Profit (GOP) / Number of Available Rooms

2. Net Revenue Per Available Room (NREVPAR)

NREVPAR is similar to another useful KPI: Revenue Per Available Room (REVPAR), but it offers an important difference. NREVPAR includes net revenues in its calculations, so when using, you’re getting an insight into distribution costs, transaction fees and travel agency commissions too.

This inclusion gives you a more transparent measurement of revenue management performance. It will assist enormously in your strategic planning. The only caveat is that it can be a challenge to gather and calculate the various costs that we mentioned above. But it is worth the extra effort.

The NREVPAR formula: (Room Revenue – Distribution Costs) / Number of Available Rooms

  1. Total Revenue Per Available Room (TREVPAR)

TREVPAR offers you an important distinction to REVPAR or NREVPAR. It encompasses all revenue generated by each room across all hotel revenue sources. These include food and drinks, leisure, events and any other guest expenditure.

This hotel KPI offers a more immediate view to management of all generated revenues and of where adjustments can be made for further growth. Is guest restaurant expenditure low, for instance? If so why and what improvements can be made? This is the kind of insight that TREVPAR offers.

The TREVPAR formula: Total Revenue* / Total Available Rooms

*Total Revenue = Accommodation + Breakfast + Spa + Bar + Mini Bar +[Any other extra revenue]

At Xotels, we are seeing how these three hotel revenue management KPIs have grown in use. This has led to more hotels making wiser choices and achieving long-lasting profitability growth.

Learn more about what we do and how we can help your hotel achieve greater profitability.

Xotels is a leader among hotel management companies with a focus on hotel revenue management. We help independent hotels outperform their competition.

Posted in Hotel Management

Top 10 Succesfull ideas for Hotel Revenue Management

Why Revenue management?

Independent and boutique hotels have the opportunity to capitalise on traveller appetite for unique experiences. Big hotel chains simply can’t compete on this front. And your hotel is also able to completely differentiate itself from other independent hotels. Coupling this with the implementation of hotel revenue management best practices gives your hotel ample opportunity. Read our 10 hotel revenue management tips here to drive the success of your organisation.

  1. Focus on Value

    In a price-sensitivity sector, value and perceived value are king. It is important to differentiate the two: one, you need to provide the value to your guests that you say you will; and two, that value must be clear to potential guests when considering which hotel to book. It doesn’t mean to undercut your competition at all. What a focus on value means is what the guest gets – where is the bang for their buck?

    You can bring value through outstanding customer service, food and beverage packages, free parking and so forth. Value-added extras that are unique to your hotel go a long way to making guest experience positive and memorable. This is the kind of value that leads to repeat stays and recommendations.

  2. Get your Distribution Channels Right

    As an independent hotel, you may not have the marketing budget that many chain hotels have. For this reason, it is essential that you choose the distribution channels that will boost your revenue management strategies best. But how do you decide which channel is best for you?

    A number of factors are important. These include ease of channel management; their potential; the cost involved; marketing opportunity the channel provides; and not least, the technology it uses and its compatibility with your own property management system.


  1. Offer Direct Booking Incentives

    Booking through external partners such as online travel agents is important, but direct bookings are the most desirable method of guest reservations. As a hotel revenue manager, you can implement measures to increase them in number.

    Direct bookings help create customer loyalty. You can encourage direct bookings by offering value-added incentives. These can include anything, from food and beverage discounts, reservation price reductions, discounts on future stays and so forth. The goal is to divert guests away from using hotel comparison sites, where they are more likely to choose a competitor. You can also promote a loyalty programme and drive the likelihood that guests recommend your hotel.

  2. Create a Culture of Perpetual Revenue Management Improvement

    A culture of revenue management improvement creates focus and negates the threat of complacency. If a focus on hotel revenue management is pervasive through your organisation, it leads to awareness among all employees of its importance. This in turn leads to more thoughtful business decisions and behaviour, which ultimately help drive revenue.

  3. Maintain Organised Records of Key Data

    Data is key to the evolution of your revenue management efforts. But the data must be pertinent. Some hotels collect a lot of extraneous data. This impedes rather than helps business decisions. Focus your hotel on the most essential – on quality over quantity, and on how it will be recorded and used.

    Not only will it be easier to store and interpret the data, but it will be faster and it will lead to more relevant insights. These insights will drive your entire revenue management approach.

  4. Always Keep up with Changing Consumer Trends

    Your hotel must never lose sight of the importance of revenue management in hotel industry and staying up to date with changing customer behaviour. This also plays an important role in supporting business decisions. You can do this through various means. For instance, a periodic review of the booking process will tell you if the channels through which customers make reservations change in any way, and of customer demographic trend movements and so forth.

    Monitor what guests say about your hotel online, on social media, blogs and hotel review websites. You must keep up with and respond to all online activity concerning your hotel, and involve the revenue management team. Knowing what customers are saying at any given time gives the revenue manager vital information that can assist decisions.

  5. Use Automation to Support, Not Replace

    Automation has become omnipresent in modern revenue management. But, it is important to not fall into the trap of thinking that everything can be automated. It should be used to assist effective revenue management, which involves many complex decision-making processes that require human professionals.

    Automation is an excellent solution, particularly for time-consuming tasks such as data entry and reporting, but it is human capital that separates the best revenue management systems from the mediocre.

  6. Prioritise Website and Mobile Experience

    Quite simply, too many hotel websites are out of date or neglected. Considering the vast majority of guests make reservations online, it is paramount to have an updated, optimised website for computer, mobile and tablet. A professional website also requires periodic updates, taking into account technology updates, changing customer behaviour, design trends and security.

    An optimised website assists your search results. But you can also use it as a foundation for online marketing tactics including advertising via Google and social media as well as organic growth through your blog and social media accounts.

  7. Always Keep ROI in Mind

    ROI should be front and centre of a revenue management strategy. It underpins every choice made and helps the revenue manager evaluate the merit and potential benefit to the hotel of pursuing a given decision.

    With efficient use of KPI data, a focus on ROI also provides hotel management with greater insights during periodic hotel performance reviews. These insights shape the business direction of the hotel.

  8. Achieve Accurate Demand Forecasting and Mapping

    Forecasting hotel demand is essential to revenue management. Accurate forecasting informs the hotel of projected costs and needs, as well as expected revenues. But your hotel will also benefit from knowing where your demand originates. This is known as mapping.

    Through mapping, you can spot trends that tell you if demand is growing or declining from specific customer demographics – age, place of origin and so forth. Mapping can also reveal other vital information, including changes to type of reservation, average customer spend per age group and so forth. This can then support marketing and sales initiatives to increase future revenues.

To implement these tips for successful hotel management, we recommend a comprehensive and large-scale review of your operations as a starting point. With these best practice tips, you will be well placed to increase efficiency and revenue in hospitality industry.

Xotels is a leader among hotel management companies with a focus on hotel revenue management. We help independent hotels outperform their competition and become market leaders.

Posted in Hotel Management

Record Performance for Independent Hotels (chains) in Q1 & Q2 2017

2017 Is looking to be our most amazing year yet. Our independent hotel collection is performing a record levels. REVPAR (marketing) and other financial result KPI are UP, UP, UP … Moreover, we have broken another record. We are now handling revenue management for over 60 properties.

2017 Mid-Year Results @ Xotels

Yes, we have passed the 60 hotels milestone, and are continuing to strategically grow our portfolio. Additions this year include the Yadoya Hotel in Brussels, a Japanese styled midmarket boutique hotel. The Plaza Elysées, a 4-star gem on Boulevard Hausman in central Paris. And we have expanded our luxury portfolio with the 5 star Sa Torre Resort in Mallorca, and not least the San Domenico Palace in Taormina Sicily (Italy), a Leading Hotel of the World, where we recently hosted the G7.

We have also been quite busy on the budget market and have grown the number of hostels we manage, via strategic partnerships with Hotel One, Gallery Hostels and SafeStay, which have properties across Europe (United Kingdom, Spain, Portugal, Czech Republic, Hungary, …).

Below we will let you in on the financial performance and REVPAR results of some our independent hotels:

  • France
    • Plaza Elysées, Paris: +17% vs. 2016
    • Secret de Paris: +8% vs. 2016
  • UK
    • SafeStay London: +36% vs. 2016
    • Lady’s Mile, Dawlish: +60% vs. 2016
  • Italy
    • San Domenico Palace, Taormina – Sicily: +20% vs. 2016
  • Netherlands
    • Qbic WTC, Amsterdam: +11% vs. 2016
    • Zoku, Amsterdam: +17% vs. 2016
    • Mabi, Maastricht: +15% vs. 2016
    • De Duif, Lisse: +71% vs. 2016
    • Kasteel Kerckebosch, Zeist: +12% vs. 2016
    • StadsHotels, Woerden: +24% vs. 2016
  • Belgium
    • Yadoya, Brussels: +5% vs. opening Target
    • Elisabeth, Mechelen: +34% vs. 2016
    • ‘t Putje, Brugge: +18% vs. Target
  • Spain
    • Casa Bonay, Barcelona: +46% vs. 2016
    • Grums, Barcelona: +21% vs. 2016
    • U Hostel Madrid: +10% vs. 2016
    • Hotel de Londres, San Sebastián Donostia: +9% vs 2016
    • Ibiza Rocks: +15% vs 2016
    • Green Nest Hostel, San Sebastian: +13% vs. 2016
    • White Nest Hostel, Granada: +23% vs. 2016
    • Nest Style, Granada +14% vs. 2016
    • Nest Style, Santiago de Compostela: +20% vs. 2016
  • Portugal
    • Premium Downtown, Porto: +61% vs. 2016
  • Switzerland
    • Bernina 1865, Samedan: +14% vs. 2016
    • Seychelles
    • La Digue Island Lodge: +24% vs.2016

Independent hotels are outperforming themselves and their local market in 2017. Not only are we seeing an increase in REVPAR, GOPPAR and also RGI (revenue growth index) is sharply moving upwards. This is being impacted notably by shifting sales to direct via the hotels’ own websites, and great efforts by the hotels’ operational teams to up-sell and generate significant incremental F&B spending.

We have just moved offices this year in Barcelona to accommodate our growth, and the second half of the year looks like it will remain as dynamic and energetic as the first half. So, if you are a revenue manager, don’t forget to check out our job board, as we continue to recruit.

It is so exciting to see that our in-house developed methodology and best practices in hotel revenue management continue to help driving financial results for such a wide range of accommodation and lodging concepts, including luxury high end hotels, as well as youth hostels, holiday parks and camping’s.

Need help with your strategies? We can help you drill into the untapped potential of your hospitality business!

Xotels is a leader among hotel management companies with a focus on hotel revenue management. We help independent hotels outperform their competition.

Posted in Hotel Management

Jobs in Revenue Management; Career Success Stories

We are proud of the career opportunities that we offer to our hotel revenue managers working at Xotels. We constantly look at making revenue management careers in hotel here as rewarding as possible, in an environment where our employees can learn and grow professionally.

And rather than sing our own praises, here are four of our very own Xotels superstar revenue managers to talk about their career and role as part of the Xotels family.

Meet 4 of our Superstar Revenue Managers


A little bit about me…

Hi, I’m Alberto and I’m originally from Madrid! Before I came to Xotels I lived in Birmingham, the UK, for 7 years where I worked in hospitality across a range of roles, including hotel reception and sales. Prior to joining Xotels, I worked as a brand revenue manager for Malmaison, the UK boutique hotel chain.

Why did I join Xotels?

It was a perfect opportunity to join Xotels, a company which I knew had a great reputation in the industry. I was looking for a fresh challenge in my career and wanted to move back to Spain.

What is working at Xotels like?“Xotels is a great place to work. What I love here is working with awesome people, the flexibility of the role and the working culture. It is a multinational environment with really capable, smart professionals from around Europe. The work here is all about autonomy – I’m in charge of my properties. I have to adapt to different types of hotel client and different budgets. Management provide a great support platform and grant all revenue managers total autonomy and responsibility to implement ideas and methods, which is very rare to find elsewhere.”

Why should revenue managers come to Xotels?

“Revenue managers should come here because of the variety and flexibility the role offers, and the brilliant people you work with. You’re involved in distribution and you have to set up your own system to how you feel is best for your properties. It’s much more than just revenue analysis.

Not only do you get flexibility from within the company but also from the hotels you manage. As they are boutique and independent hotels, they give you the flexibility that big brand hotels don’t.

The people you work with here are amazing. It’s a real multinational, multicultural mix from all around Europe. We all help each other. We work in English but it’s common to hear 3 or 4 languages across the office.

The learning immersion experience at Xotels is exceptional – from the company, the role, the diverse clients and of course, from the people you work with.”



A little bit about me…

Hi, I’m Marta! I’m originally from Barcelona. I came to Xotels in late 2016. Before, I lived in London for 5 years. I’ve worked in hospitality across a variety of roles, including reception, reservations, events and sales. Prior to Xotels, I worked for Radisson Hotels.

Why did I join Xotels?

I read so much about the company before I joined and was eager to work here based on the reputation for a dynamic culture. Things never stand still here so you develop quickly as a professional. Xotels is exciting. It’s always fresh and for a revenue manager it’s not easy to find a role that is so compelling.

What is working at Xotels like?

It’s different to any other hospitality role for many reasons. One, it is not a hotel. Everyone is so passionate about their work here. There is a company-wide commitment to excellence. Everyone is focused. I wouldn’t change a thing!

The schedule is very flexible. I’m in charge of my own time, though I typically work a 9-5 or 9-6 day. I used to work for a big multinational hotel chain, where processes and workflows are rigid and often outdated. Here it is the opposite – you have the flexibility to do what you feel is in the best interests of your properties.

I manage hotels all over the world, so it’s never boring! Management are great, supportive and flexible. When you join, the support and training provided to help you acclimatize is fantastic.

Why should revenue managers come to Xotels?

There is no better time to join. It is growing and developing. The career opportunities are endless. The team is so diverse, smart and open-minded. There is an international environment, from which it would be difficult not to learn. It is fast-paced, dynamic and so rewarding.

Come here if like me you want to learn every day, have fun at work and grow as a professional revenue manager!



A little bit about me…

Hi, I’m Alexis and I’m originally from Paris. I’ve been a revenue manager at Xotels since early 2015. Before coming here, I worked in innovation and costs control for a French family-run hotel management company. I was also previously the assistant general manager for an independent French hotel and I’ve worked in other roles, including receptionist, concierge and waiter.

Why did I join Xotels?

I came here to focus on hotel yield management and revenue management. I did a masters degree in innovation. I felt that Xotels would be a good company to implement innovative concepts and ideas. I knew of many hotels that were clients of Xotels. I wanted to join an important company in the sector and to learn as a revenue manager. I also wanted to move to Spain and work in an international environment, and as Xotels is right in the heart of Barcelona, it was a great opportunity for me.

What is working at Xotels like?

Xotels is a great company if you want to learn as a revenue manager. I manage clients in Spain, France, Belgium, the UK and elsewhere, so the client portfolio under your care is always diverse and challenging in different ways.

Why should revenue managers come to Xotels?

You will learn a lot here. You are exposed to so many different markets, and have to work with many different processes. You learn to be adaptive quickly. A bonus for me also is that the office is right in the center of Barcelona city!


A little bit about me…

Hi, I’m Fabio, I’m from Italy and I’ve been at Xotels since May 2016! Before moving to Barcelona to work here I lived in Belgrade, Serbia, and worked as a hotel revenue manager. I’ve worked in hospitality since 2010 in various roles including reception and sales.

Why did I join Xotels?

I came to Xotels to boost my career. I always looked at the company as pioneers in the industry. It is driving revenue management improvement across the sector. I wanted to join what I felt was the best revenue management consultancy in the sector.

What is working at Xotels like?

It is a fast-paced, bustling workplace. If you want a professional challenge in an environment where you will learn every day, Xotels is perfect. I wanted to work in an environment with people similar to me – people who have lived and worked or studied in foreign countries and people who want to learn and grow as professionals. I’ve made many good friends at Xotels.

My three favourite things about working here are the variety of work, the wonderful people and the work-life balance – when you finish for the day at the office, you really do finish. And there are no phone calls from the office when you’re on holiday! Oh and I also want to say that the company is great at managing your workload too.

Why should revenue managers come to Xotels?

It is the perfect company for candidates who want to work in a fast-paced environment, are adaptive and eager to learn. You have the opportunity to learn at Xotels what takes much longer elsewhere. Every project is different and you need to learn to think outside the box. It’s such a rewarding position. You always have support from management, but ultimately you are in charge of making and executing your decisions.

I am very much looking forward to continuing my career with Xotels and being part of a forward-thinking, fast-growing company.


Are you ready for a new hotel revenue management career? Visit our revenue management jobs section for more information on our current revenue manager vacancy.

Xotels is a leader among hotel management companies with a focus on hotel revenue management. We help independent hotels outperform their competition and become market leaders.

Posted in Hotel Management

Hotel Feasibility Study, The best steps for planning a New Hotel or Resort.

In over ten years of helping hotels to open and remodel successfully, we have seen time and again at Xotels how indispensable a feasibility study is. We have also seen how many would-be hoteliers simply assume that their vision will succeed, without conducting any notable research on building a hotel business that will be consistently profitable and competitive. In this article we look at the steps involved in carrying out an effective hotel feasibility study.

What does feasibility study mean and do you need one?

As the name suggests, a feasibility study investigates your hotel proposal to see if it is feasible as a sustainable, profitable business model. It does this by considering its viability relating to market, location, costs and financing. A feasibility study forms the cornerstone of your preparations for your new or remodeled hotel. It shows investors how they will receive a return on their investment (ROI). It is therefore ill advised to proceed without carrying out this crucial investigatory and illuminators step.

Below you will find a template plan and approach the expert team of our hotel consulting company takes to put together a comprehensive validation report, based of hotel financial and market analysis, to determine the viability of a new hospitality project or lodging concept.

The key feasibility steps of an effective hotel feasibility study

  1. Location analysis

Studying proposed sites for your hotel or resort aims to answer a number of questions critical to the success of your hotel project. What makes the location an attractive site? Is there a supply of labour sufficient in number and quality? What human resource costs can be expected? Is the hotel supported by easy transport links? What are potential risks and advantages associated with the local area?

  1. Total costs calculation

This includes the development and architectural costs prior to opening the hotel. Then there are the operating overheads, which the hotel will incur, including licenses, taxes, equipment, furniture, insurance, human resources, inventories, electricity, water and more.

  1. Local hotel supply and demand investigation

This involves analysing all hotels in the local area, chiefly their competitiveness. Information can be found with tourist boards, tour operators and travel research groups. Knowing local hotel supply and demand helps in projecting occupancy levels and rates for your hotel, one of the key elements in establishing its economic feasibility.

  1. Room rates and year-round occupancy levels

After establishing hotel supply and demand, your own hotel’s competitiveness, your projected operating costs, desired ROI, and crucially, benchmarking your competitor hotels, you can focus on room rates. Year-round projections for demand will go a long way to informing your pricing decisions.

  1. Establishing and projecting hotel revenue sources

The main sources of revenue for your hotel will come from room stays, food and beverage, and events such as conferences and meetings. Using your projections for average year-round room rates and occupancy levels, you can project sales from different revenue sources, including food and beverage, leisure and events.

  1. Hotel feasibility study projected ROI

One of the most important parts of your hotel feasibility study is the projected ROI. ROI is worked out by using a number of metrics, including internal rate of return (IRR), net present value (NPV), debt coverage ratios and discounted cash flow (DCF), as well as others. They help to show if the investment return is enough to proceed and if you will need to find financing from elsewhere.

If so, will the lenders of this capital be content with the projected ROI? If not, the hotel proposal can be abandoned altogether or it can be altered to make the return on investment attractive enough to proceed, such as changing site, tweaking room rates and reducing costs. A clear and comprehensive report is what banks, institutional or private investors (family offices) will be looking for.

Hotel Feasibility Study – The final word

As you can see, a hotel feasibility study is extensive, and with good reason. It gives you and all interested stakeholders such as other investors a much clearer picture regarding the costs involved, whether the return on investment is desirable, and helps in deciding how to proceed. A feasibility study is largely seen as an indispensable step for all serious hotel proposals and accompanies the business plan in forming a blueprint for success.

Xotels is a leader among hotel management companies with a focus on hotel revenue management. We help independent hotels outperform their competition.

Posted in Hotel Management

Xotels | The Top 5 Characteristics of Independent Hotels.

Independent and boutique hotels have a number of advantages over their chain competitors, of which owners can take advantage to achieve greater success. At Xotels we love independent countiqie or concept hotels, because they allow us drive premium results. So, what are these characteristics of independent hotels that provide unique selling points over the chain or franchise hotel variety?

What Are The Successful Characteristics of Independent and Boutique Hotels?

  1. They can offer outstanding personalized hotel service

A quality of service is paramount to business success in any industry, but particularly for hotels – a perpetual client-facing industry. Rather than offer standardized service and practices with rote protocols and rigid systems, boutique hotels can really focus on providing an outstanding, memorable service experience. Quality of service is paramount to hotel business success in any industry, but particularly for hotels – a perpetual client-facing industry. Rather than offer standardized service and practices with rote protocols and rigid systems, boutique hotels can really focus on providing an outstanding, memorable service experience.

Service that goes the extra mile is increasingly rare, which offers independents another opportunity to stand out. It can be tailored, personalised and updated with ease in an independent or boutique hotel.

  1. Unique Hotels Group: Chain vs. Independent Hotels.

If you visit a national or multinational chain hotels, you probably agree that they tend to lack a certain individuality found in independent hotels, right? Independent hotels that are run well offer a unique experience for guests. Perhaps it is their history – with some hotels decades or even centuries old – or maybe it’s the decor, or the fact that it is family-run – it can be any of a number of points to help make the hotel stand apart – a selling proposition that the hotel is able to use to market themselves with a unique pedigree.

The chain hotel in comparison offers a predictable stay – the same experience you’ve probably had before, give or take on minor details, and probably will again. There will always be a clientele cohort that seeks out local hotels over chains.

  1. They have greater creative freedom

Of course there are the chains and international franchises that offer fantastic hotels, but again, they are standardised across the board, with little room to be creative. Independent and boutique hotels can let their imaginations run wild with decor, furniture, food, events and anything else – even in how they market themselves. This allows the independent hotel to strengthen their identity and reputation, and offer a special, distinctive, memorable hotel experience for the guest.

As travellers and tourists look for local, idiosyncratic experiences in today’s globalised world where high streets are nearly identical whether you’re in London, New York, Paris or Barcelona, the independent hotelier can seek to take advantage of their freedom to get creative.

Actually, you can really get more edgy and daring, and create a cool or sexy hotel that connects. A tell that people will be talking about, kick starting your social media influencer marketing for you …

  1. They are much more agile than their chain counterparts

Chain hotel management is typically layered in a hierarchy. They are often international or even intercontinental in scope. It can take a long time for any type of process involving proposals, decisions and execution to be completed. A small group, on the other hand, typically manages independent hotels, on-site. These hotels can make quick strategic and tactical decisions and follow through similarly on execution. This is a massive advantage that independent hotels have over franchise or chain competition.


  1. They can focus all resources, energy and attention on one hotel

As mentioned, chains and franchise hotels are 3ayered, with centralised control often in a different city or country. Sure, each branch has a general manager, but they do not have near the remit over operating decisions that their independent hotel counterparts enjoy. Chains may not be able to devote, as much attention and resources to individual hotels is often necessary.

Boutiques and independent hoteliers are able to spend all their time and hotel resources to invest exclusively on their hotel. Their knowledge of their business is more intimate, as well as their awareness of the local market. Moreover, independents tend to absorb low booking periods with greater ease, without the pressure and targets to hit that typically come with chain hotels.

The final word – essential features of boutique and independent hotels

These top 5 characteristics of independent hotels show some of the most noteworthy advantages that they can enjoy over chains. This is of course if they are run well, if management proactively aims to leverage such opportunity for unique selling propositions, and if they continue to invest time and resources towards a continued commitment to excellence..

Xotels is a leader among hotel management companies with a focus on hotel revenue management. We help independent hotels outperform their competition.

Posted in Hotel Management

Xotels | Yield Management in the Hotel Industry meaning

First of all, what is Yield Management and what is the definition of Yield Management in the hospitality industry?

Simply put, the purpose of Yield Management (aka Revenue Management) is to achieve maximum revenue/profit. To do this, a hotel yield management strategy needs to be both reflective and forward-looking. That is, yield managers should attain a clear yet detailed understanding of what has happened before, and what is happening now. The most efficient way to do this is to draw from historical data to predict what may then happen in the future. So, the process of effective yield management involves understanding, anticipating and reacting to consumer behavior (to ultimately maximize revenue!).

By optimizing yield management, an independent hotel or a chain of hotels can adjust its prices, to meet the total demand characteristics of its markets.

Prices can be determined by:

  • Service
  • Group of services
  • Market (consumer type or geographical), or
  • A combination of the above

Yield management models are most effective where the service being supplied is characterized as:

  • Capital intensive
  • Perishable (revenue is lost if the product/service is not sold by a particular point in time)

And the demand side is characterized with:

  • Variability of demand, and
  • Variability of value

These days, smart yield managers or yield management teams use specifically- developed software, particularly when formulating variable pricing and revenue management strategies.

Where a small or newly opened hotel perhaps needs help and advice on orchestrating and then successfully implementing a well thought through yield management strategy, the services of an outside consultancy firm or indeed an independent freelance consultant could be utilized. This can prove a wise investment, saving hotels years of trial and error when trying to get to grips with effective yield management. An experienced consultant can advise on key steps, formulas, ideas and best practices, as well as sharing a few little-known industry tips and tricks!

Xotels is a leader among hotel management companies with a focus on hotel revenue management. We help independent hotels outperform their competition.

Posted in Hotel Management

Xotels | Revenue Management in the Tourism Industry

Revenue Management for Camping Sites & Holiday Parks by Xotels

Over the last year, we have expanded into a new and very exciting segment of the tourism industry. We have taken on the revenue management for a camping site and holiday park in the UK. We have adapted our methodology and revenue management strategies to the specific requirements of this lodging type, and the results are incredible. We would like to take you with us through our journey of the last few months implementing yield and dynamic pricing at Lady’s Mile in Devon, United Kingdom.

We were approached to take on revenue management for this camping site and holiday park, and were very energized to learn a new area of our industry and apply our knowledge and expertise. We were motivated by the true entrepreneurial mindset and business vision at Lady’s Mile, and eagerly took on this very exciting challenge.

Just as with hotels and youth hostels, camping sites and holiday parks offer a perishable product, which is lies at the base of revenue management strategies. The theory of selling the right product, at the right time at the right time at the right price applies perfectly; hence dynamic pricing should be applied to maximize your financial results. But where to start?

The step to take was to analyzing the configuration of the management systems in place and reviewing existing data reports. Based on this we quickly concluded we needed to establish KPI unique to camping sites to allow for objective measurement and analysis of results. Below you will find a step by case study on how we implemented revenue management for this camping and holiday park.

Key Performance Indicators 

There are lots of KPI’s to set. We talked about KPI for hotels, but there are also KPI’s to set for Camping Revenue Management.

Below you will find a sample the ‘new’ KPI we have implemented for Camping Revenue Management.

  • UN – Unit Nights: number of units (Static or Touring) that were occupied during a night
  • AUR – Average Unit Rate
  • REVPAU – Revenue per Available Unit

After implementing these basic changes in our reporting structure, we went on to review the accommodation / lodging offer.

Lodging Types

Here a key difference exists from the traditional ‘hotel’ accommodation structure. Holiday Parks and Camping Sites are in fact a hybrid business model with segments, in this case lodging types, that truly have a completely different behavior in terms of seasonal demand curves, booking lead-time, length of stay, pax occupancy levels, etc.

In this case, we have differentiated 2 lodging types:

  1. Static – fixed accommodation types, provided by the business. They include: caravan-homes, camping pods, lodges, cabins, huts, self-catering apartments. Etc.
  2. Touring – pitches for lodging in units, which the guest brings with them. These include: camper van, caravan and tents.

Touring we have separated into 2 sub-segments:

  • Seasonal – including rental for a couple of months or the entire season / year.
  • Transient – including stays anywhere from 1 night to a couple of weeks.


The distribution landscape for holiday parks and camping sites differs a lot from hotels. There are of course OTA (online travel agencies) specialized in this field. To name a few:,,,,,, etc.

We have noticed as well that the major OTA have been mainly focused on hotels traditionally, are also open to selling camping sites and holiday park lodging. We have added Lady’s Mile to websites like, Expedia.

We are also actively looking at other alternative channels to create more exposure and increase the online reach of Lady’s Mile. Our strategies are aimed at driving both occupancy and average rate.


Segmentation is also an important component to revenue management. We have used the following set-up to allow for proper data analysis supporting our decision-making needs:

  • Direct
    • Offline
    • Website
  • Third Party
    • OTA

Groups will be something we start looking into over the course of this year.

Dynamic Pricing in the Tourism Industry

The holy grail of revenue management is of course dynamic pricing in hotels, the tourism industry or other markets. Stepping away from traditional seasonal published rates to a supply and demand driven yield structure, we have set the basis for maximizing top and bottom line revenue results.

Based on the historical performance of Lady’s Mile we have developed a demand calendar, with an initial rate structure. Just as with hotels we are measuring booking pace and demand curves based on which we forecast future occupancy levels. However, as mentioned before we are dealing with a hybrid business model, including Static and Touring lodging types so this is done separately, as well as for the sub-segments Transient and Seasonal within Touring.

Based on our forecast pricing is yielded for each individual lodging unit independently, optimizing the total lodging revenue.

We have developed an extensive pricing grid, with different strategies, taking many factors into consideration:

  • Seasonal rate patterns (low, mid, high and peak season levels)
  • Supplements per unit type
  • Length of stay, arrival and departure patterns
    • Short stays, 1 or 2 days
    • Weekend vs. midweek
    • 3, 4 day rates and full week pricing

Such a ‘complex’ or rather comprehensive rate structure gives us the tools we need to yield effectively and maximize revenues.

A note for the skeptics, out there, we have experienced no resistance with consumers towards dynamic pricing. Consumers have been educated over the years by industries like airlines, car-rentals, hotels, etc. that prices vary over time.

Demand Calendar & Forecasting

To finish the job, we built our customary demand calendar, showing all relevant and required data in one single report. This includes data as on the books statistics, pick-up pace, competitive market benchmarking information and price comparisons. This allows us to make well-informed decisions and forecast accurately.

Team Work

We have also been working closely with the operations team on property, to enhance procedures to upgrade the service experience and perception. Their input has also been instrumental to rapidly gain a better understanding of the unique factors of their business and market. Teamwork remains essential to build success of course.

Optimized Website

Additionally, have we assisted them in launching a new website. The goal is to position the property as a market leader, and differentiate it from other providers. The new site is much more structured than before, with intuitive navigation. It has a fresh modern look and feel and clearly outlines the type of product, facilities and services being offered. Improved search engine ranking and conversion will lead to growth in direct sales. Take a look:


The Results

In Q1 of 2017, the most challenging season for this kind of business, we have generated GBP 136.000 in additional lodging revenue compared to last year, which represents a 90% revenue growth.

The outlook for the rest of 2017 is quite exciting as well. We are already at 88% of the revenue generated in 2016. This because we have been able to grow average rate substantially. The AUR is up 41% for the whole year. Of course, this is slightly inflated as Static, with a higher AUR, has a much longer lead-time than Touring Transient. But both are up: Static AUR +24% over last year, and Touring AUR is +10% over last year, and we foresee this to continue to increase.

2017 will be an amazing record year at Lady’s Mile Holiday Park.

More Miles to Make

We have just implemented a new PMS, so we are now looking to explore new opportunities with this enhanced system in terms of yield, inventory management and distribution.

Additionally, we are working on displacement calculations between Lodging Units, calculating profitability per unit type. In a camping or holiday park revenues and bottom line can be optimized, by having the right product or unit mix. So, we are advising the owners on investments and ROI of each unit type.

And many more ideas up our sleeves, to keep us busy for quite a while.

We are really enjoying having ventured into this new field of the tourism and lodging industry and look forward to work with more camping’s and holiday parks.


Xotels is a leader among hotel management companies with a focus on hotel revenue management. We help independent hotels outperform their competition.

Posted in Hotel Management

Xotels – What is Hotel Market Share?

What is the meaning / definition of Hotel Market Share in the hospitality industry?

In the Hospitality Industry, all hotels should strive to capture maximum revenue at all times. And, sometimes, comparing revenue levels with other hotels can provide a valuable insight. This can help to establish a hotel’s Market Share: the percentage of business it is getting within the hotel market overall.

A hotel should try to discover how it is performing in comparison to other neighboring hotels, and even to several hotels within a competitive set (or ‘comp set’), to gain a wider perspective. Based on this knowledge, they can consider how to perhaps adjust their business strategy, to improve performance and work towards maximizing revenue more efficiently.

The key question a hotel’s revenue management team should ask, after studying and analyzing the findings collated and compiled into a comp set research report, is: “Are we really satisfied with our market share?. The share can be established quickly by performing a simple calculation:

The actual percentage of the room nights sold or revenue captured during a particular timeframe, for example: Easter, Christmas, the summer season, or the peak skiing season, e.g. divided by the total room nights or revenue sold within the competitive set (inclusive of the subject hotel).

Market Share Formula:

Hotel Market Share= revenue sold at the hotel / revenue sold within competitive set

How to calculate hotel market share:

Market Share = 5000 / 14500= 34%

Xotels provides Revenue Management Software and Revenue Management Consulting to improve your hotel performance.

Posted in Hotel Management

Xotels | What is dynamic Pricing in hotels?

What is the meaning of dynamic pricing? And what can you do with it? In this revenue management article are we going to explain what Dynamic Pricing in the hotel industry is.

Successful hotels around the world aim for optimum profitability at all times. There are lots of things a hotel can do towards achieving this. One is for the Revenue Management Team to make Dynamic Pricing part of their overall strategy. Consortia/negotiated rates are no longer fixed (in some cases).

By linking to the BAR, they now fluctuate with any BAR change.

When it comes to Dynamic Online Pricing, the key is flexibility. Rooms within the same category at a hotel can be sold at different prices at different times – the price does not always have to remain locked.

So, how does a hotel know when to change the rate for certain rooms, or indeed, all of them? Well, the best way to do this is to closely monitor consumer demand.

If you know how much need there is for rooms at certain times, you can then adjust your prices to satisfy those needs, at exactly the right moment.

The demands of the market, then, determine how room rates dynamically alter. And this does not only apply to adjusting room rates for individual customers, couples or families.

Dynamic Pricing in hotels can also be factored into the management of group business bookings, i.e. when setting group rates and corporate rates.

Finally, if a hotel has a Membership Scheme, Dynamic Pricing can be used when creating a Member Rate pricing strategy. The cost of rooms and other in-house services can be dynamically changed, in accordance with room availability for Members and also the terms of each Membership package.

Xotels provides Revenue Management Software and Revenue Management Consulting  to improve your hotel performance.

Posted in Hotel Management