Lecture on Increasing RevPAR in Hotels

Presenter: Timmy Napsow, Executive Vice President and Co-Founder of FortisPay

Key Topic: RevPAR (Revenue Per Available Room)

• Introduction to RevPAR

  • Importance for hotel owners, managers, and finance departments.
  • Various strategies to increase RevPAR.

• Challenges in Increasing RevPAR

  • Market and brand-specific struggles.
  • Balancing ADR (Average Daily Rate) and occupancy rates.

• Strategies for ADR and Occupancy Balance

  • Decreasing ADR to increase occupancy.
  • Conversely, some brands increase ADR, maintaining higher rates with lower occupancy.
    • Benefits include less wear and tear on rooms and decreased maintenance costs.

• Considerations in Cost Management

  • Free breakfast and other amenities can increase costs when rates are dropped.
  • Not always a viable solution to increase occupancy.

Role of Online Travel Agencies (OTAs)

• Historical Context

  • OTAs had significant control over hotel market rates.
  • Examples: Priceline, Hotwire.

• Brand's Response to OTAs

  • Ensured that brand/franchise websites offered competitive rates compared to OTAs.
  • Goal: Maintaining revenue without unnecessary rate decreases.

New Approaches and Technological Advances

• Meta Search and Pay Per Click

  • Opportunities to improve specific targeting rather than catch-all marketing.

• Smart Searches

  • Personalizing guest services based on specific needs and habits.
  • Example: Similar to personalized car wash offers at gas stations.

• Examples of Smart Guest Services

  • Offer additional services based on guest behavior or occasion.
    • Breakfast packages, spa packages for special events like anniversaries.

Future Implications for Hotels

• Enhanced Guest Interaction

  • Importance of direct communication with guests to identify needs in real-time.

• Potential for Increased RevPAR

  • Customizing offers and services to guest preferences and needs.

Conclusion

• The future of hotels involves integrating technology with personalized guest interactions.

• Focus on smart, responsive services to enhance RevPAR and overall guest experience.

• Final Thoughts

  • Emerging exciting concepts and technological advancements.

• Thanks for listening