4 Ways You Can Control RevPAR
March 7, 2017
RevPAR saw tremendous growth in 2015, increasing more than six percent on average and projecting a positive outlook to investors, owners, and general managers. Only two years later, RevPAR is expected to drop to less than three percent in 2017, and continue the decline into 2018.
This dramatic fluctuation presents a challenging landscape for hotel and resort owners, as they face the difficulty of meeting investor expectations for asset appreciation. This is even more daunting for general managers, who must deliver slowing financial growth results to their owners.
Hoteliers cannot control the economy but is a lot they do control that can drive above-market RevPAR growth. This added RevPAR requires no capital expenditure and can drive immediate results on RevPAR. Below is a brief list of practices that will put RevPAR growth squarely in your hands:
- The best service you can offer is to offer your best services. Inspire your frontline team members to educate every guest on the rooms, products, and services that will enhance their experience.
- Revenue management is not just for rooms anymore. Engage your revenue management team to get involved in setting dynamic pricing across all guest offerings.
- Incentives, incentives, incentives. Provide your team the ability to increase their income as they increase your RevPAR. Rewarding team members for exceeding expectations does not cost you anything since your keeping more than you expected.
- Recognition is free. Set up a program to recognize team members and managers who are driving results. “Employee of the Month” programs are good but “Performer of the Month” inspires team members to stretch themselves drive quantifiable results.