By Max Starkov & Mariana Mechoso Safer from HeBS Digital
Budgeting season: The time to analyze what initiatives are driving performance, review trends in the industry that should be taken into account when constructing your budget, and start thinking about any major upgrades your property needs to take in its digital technology and marketing strategy.
Knowledge of where the industry’s key benchmarks are headed is critical to budgeting appropriately and knowing where to focus your efforts to see results. According to STR, the US hotel industry is projected to see growth, slow yet steady, through 2018. However, supply will continue to outweigh demand in many major markets (+2.2% vs. +2.0%). Occupancy is softening by -0.2%, ADR will remain flat at +2.8% and RevPAR growth will be at only +2.6%.
This year, in addition to a continued focus on book direct strategies, a topic dominating discussion includes the need to bridge the data, technology, and marketing silos to increase operational efficiencies, as well as improve our ability to use the data we have about our guests to build relationships, increase loyalty and revenue, and acquire new guests.
Success in 2018 will be based on how much you can lower your acquisition costs and how well you know your guests, along with what you do with that knowledge….