The STAR program is used by the global hospitality industry as a key revenue management tool. The report compares a hotel‘s performance to its competitive environment and local market. The STAR program tracks and provides monthly, weekly and daily data.
And what does the STAR report mean?
The STAR program (Smith Travel Accommodations Report) is managed by the global Hotel uses industry as an important revenue management tool. The STAR program tracks and delivers monthly, weekly, and daily (outside North America only) report data.
One may also wonder what an STR report is?
Developed by the hospitality industry Analyst firm Smith Travel Research, the STR report is a benchmarking tool that compares your hotel‘s performance against a range of similar hotels.
Just so, what is the Hotel Star Report?
Smith Travel Accommodations Report (STAR Report) A benchmark used to evaluate a hotel‘s performance relative to its peers. The Smith Travel Accommodations Report (STAR Report) tracks topics such as: Occupancy Rate.
What does STR mean for hotels?
Smith Travel Research
How do you calculate it ADR change?
Simply multiply your average daily rate (ADR) by your occupancy rate. For example, if your hotel is 70% occupied and has an ADR of $100, your RevPAR is $70. The other way to calculate it is to divide the total number of rooms available in your hotel by the total revenue for the night.
How is MPI calculated in hotels?
Market Penetration Index (MPI). You can calculate it by dividing your hotel‘s occupancy rate by that of your competitors and multiplying the result by 100.
What is RGI in the hospitality industry?
RGI stands for: Revenue Generation Index. RGI compares your hotel‘s RevPar to the average RevPar on the market. It is used to determine if a hotel is getting a fair share of revenue compared to its compset.
What if my compset numbers contain spaces in the STR report?
What if my comp set numbers contain spaces in my bandwidth report? This means your comp set did not contain enough data for reporting. At least three (3) hotels are required to report data for STR Comp Set performance.
How is RGI calculated at hotels?
How RGI is calculated:
- RGI = 1 The hotel‘s RevPar is equal to the average RevPar of their comp set.
- RGI>1 The hotel‘s RevPar is higher than the average RevPar of their comp set.
- RGI<1 The hotel‘s RevPar is lower than the average Comp Set RevPar.
What does Comp Set mean?
How to calculate the occupancy index?
Occupancy is calculated by dividing the number of rooms sold by the number of rooms available. Occupancy = Rooms Sold / Rooms Available. Occupancy Index – The measure of your property’s occupancy percentage compared to your competitors’ occupancy percentage. Formula: Hotel OCC/Competition Set OCC * 100.
What is GOP in the hotel industry?
GOP stands for: Gross Operating Profit. It is a KPI related to the hotel‘s profits after deducting all operating expenses. It illustrates a hotel‘s level of operational profitability.
Why is RevPAR so important?
RevPAR is used to evaluate a hotel‘s ability to increase its available rooms at an average fill price. If the RevPAR of a house increases, the average room rate or occupancy increases. RevPAR is important because it helps hoteliers measure the overall success of their hotel.
What is the average number of hotels in a competitive group?
Competitor identification. A competition set (or comp set) should typically be a group of at least four to five hotels that can qualify as direct competitors for your own fortune. To be fair, it’s often difficult to define your ideal comp set for a variety of reasons.
How do you calculate year-to-date occupancy?
To calculate year-to-date -date (YTD) yield of a portfolio, subtract starting value from current value and divide by starting value. Multiplying by 100 converts this number into a return percentage, which is more useful than the decimal format when comparing returns on different investments.
What is an Occupancy Index?
Occupancy Index: A relative measure calculated as : Occupancy: Rate of a selected hotel. + occupancy rate of this hotel‘s competitors = occupancy index.
How do you analyze hotel performance?
Below is a list of key metrics to help you analyze your hotel‘s market performance and create the appropriate market strategies:
- Average Daily Rate (ADR)
- Revenue per Available Room (RevPAR)
- Average Occupancy Rate / Occupancy (OCC)
- Average Length of Stay (ALOS)
- Market Penetration Index (MPI)
What is the role of Smith Travel Research?
Smith Travel Research, an American company formerly known as STR, provides the hotel industry with a monthly report that helps measure and compare hotel performance against other competitors in the market .
What is the formula of RevPar?
RevPar is calculated by multiplying a hotel‘s average daily room rate by its occupancy rate. It is also calculated by dividing the total room revenue by the total number of rooms available in the metered period. The RevPAR reflects an accommodation’s ability to fill its available rooms at an average price.
What is a good RevPar?
On average, you rent out about 45 of these rooms every night Utilization is about 90%. If you charge an average of $100 per night, your RevPAR will look like this: $100 x $0.90 = $90. RevPAR is basically the money you make every night from every room in your hotel, not just the ones booked.