Selling rooms.
WHAT THE ECONOMICS DEPEND ON
Occupancy and rate.
WHAT THE COMBINED MEASURE IS
Revenue per available room.
WHY THAT MEASURE
It captures both, and it is what tells you whether the business works.
WHAT TO ESTABLISH
Your break-even occupancy.
WHY
Fixed costs continue whether rooms are sold or not.
WHAT DRIVES OCCUPANCY
Location Rate Reviews Visibility on booking channels
WHAT BOOKING CHANNELS PROVIDE
Reach and bookings.
WHAT THEY COST
Commission.
WHAT TO PURSUE ALONGSIDE
Direct bookings.
HOW
A website that takes bookings Returning guests Local relationships
WHY DIRECT MATTERS
The commission saved is margin.
WHAT TO MANAGE
Rates, by day and season.
WHY VARY THEM
Demand varies, and a fixed rate leaves money on the table or rooms empty.
WHAT GUESTS ACTUALLY JUDGE
Cleanliness, above everything Whether the room matches what was shown Whether things work Water and power How staff treated them
WHY CLEANLINESS DOMINATES
It is the most common subject of negative reviews.
WHAT TO ESTABLISH
Cleaning standards, checked.
WHAT TO ENSURE WORKS
Water, power, air conditioning and connectivity.
WHY
Their failure produces the complaints that damage ratings most.
WHAT TO MEASURE
Occupancy, rate, reviews and repeat guests.
