Tracking the right hospitality business metrics is essential for growing your bed and breakfast. For instance, metrics like occupancy rate, average daily rate (ADR), and revenue per available room (RevPAR) give valuable insights into your business’s performance. Therefore, by keeping an eye on these numbers, you can make smarter choices, improve guest satisfaction, and increase your revenue. In this post, we’ll explore 10 key metrics that can help your bed and breakfast thrive.
Moreover, we share examples of how two platforms track each of the hospitality business metrics. These are not necessarily recommendations of which platforms to use. Thus, please do your own due diligence to determine which platforms will work best for you and your hospitality business.
Hospitality Business Metrics : Occupancy Rate
Occupancy Rate is a simple but powerful way to track how many of your rooms are rented over a set period. This metric shows how well you attract guests. This means that the higher your occupancy rate, the more guests choose to stay at your bed and breakfast. Thus, this is a clear sign that your business is doing well!
By tracking occupancy trends, you can spot patterns throughout the year. For example, certain months may see more bookings. Knowing this helps you plan ahead for busy seasons. Specifically, you can ensure your rooms are ready and that staff is properly scheduled.
A high occupancy rate also indicates your marketing is working. So, if bookings increase after running an ad or promotion, you know your efforts are paying off. This shows that you’re using your property efficiently, filling as many rooms as possible. Thus, by regularly monitoring this metric, you can adjust pricing, create special offers, and make decisions that help maximize bookings and grow your business.
Cloudbeds
Cloudbeds helps bed and breakfast owners calculate occupancy rates by dividing the number of rooms sold by the number of rooms available, multiplied by 100. This platform automatically tracks room availability and bookings, allowing innkeepers to see real-time occupancy rates. The benefit of using Cloudbeds is its ability to integrate with various booking channels, providing a comprehensive view of occupancy while managing inventory and maximizing revenue. Learn more at https://www.cloudbeds.com.
STAAH
STAAH offers a property management system with a powerful occupancy tracking feature. By automatically calculating the number of rooms sold divided by the total number of rooms available, STAAH enables property owners to monitor their occupancy rate in real-time. This tool also provides valuable analytics and insights to help improve performance and forecast occupancy trends. Visit https://www.staah.com for more information.
Hospitality Business Metrics : Average Daily Rate (ADR)
Revenue per Available Room (RevPAR) is a key metric for tracking income. It combines two metrics: occupancy rate and average daily rate (ADR). Thus, RevPAR tells you not only how many guests stay, but also how much money each room brings in.
If your RevPAR increases, it means your business is doing well. A higher RevPAR shows that either more guests are booking or your room rates are set correctly. Therefore, this means your marketing and pricing strategies are working effectively.
Tracking RevPAR regularly helps you find ways to improve. For example, you might offer special packages to bring in more guests. Moreover, you can also upgrade amenities to increase the value of your rooms. Thus, the goal is to keep growing RevPAR steadily over time, ensuring your property is performing efficiently.
RoomRaccoon
RoomRaccoon allows property managers to calculate the Average Daily Rate by dividing the total room revenue by the number of rooms sold. This tool helps track revenue performance and optimize pricing strategies by analyzing ADR trends over time. One of RoomRaccoon’s key benefits is its dynamic pricing feature, which adjusts rates based on demand, helping maximize revenue. Discover more at https://www.roomraccoon.com.
Siteminder
Siteminder calculates the Average Daily Rate by dividing the total room revenue by the number of occupied rooms, helping properties track pricing trends and compare their ADR to competitors. Siteminder’s intuitive platform also provides tools for dynamic pricing and channel management to maximize revenue. Visit https://www.siteminder.com for more details.
Hospitality Business Metrics : Revenue per Available Room (RevPAR)
Revenue per Available Room (RevPAR): This metric combines occupancy and ADR to give a complete picture of how well a B&B is generating income from its available rooms. Hence, it’s a key growth indicator that allows owners to assess total room performance, not just based on the number of bookings, but also the revenue those bookings bring in. Thus, consistently improving RevPAR indicates successful marketing, pricing, and operational strategies.
Revenue per Available Room (RevPAR) is an important metric for bed and breakfast owners to understand, because it gives you a clear picture of how much money you are making from your rooms. RevPAR combines two key things: how full your rooms are (occupancy rate) and how much money you make from each room (Average Daily Rate or ADR). In other words, it tells you not only how many guests stay with you, but also how much revenue you are making from those stays.
Improving your RevPAR means your business is growing and becoming more successful. Thus, if your RevPAR is going up, it means more guests are staying, you’re charging the right price, or both. Therefore, that is a strong sign that your marketing and pricing strategies are working.
By tracking RevPAR, you can find ways to improve your business. For example, you might decide to offer special packages to attract more guests or increase the value of your rooms by adding amenities. The goal is to keep increasing your RevPAR over time, which means you are using your property efficiently and growing your revenue. Thus, this helps your bed and breakfast thrive in the long term.
Mews
Mews calculates RevPAR by multiplying a property’s occupancy rate by its average daily rate, giving an accurate measure of revenue generated per available room. The platform offers a real-time dashboard that tracks RevPAR performance, helping property managers adjust pricing and inventory for better profitability. Mews also integrates with major booking platforms, ensuring seamless room management and revenue optimization. Learn more at https://www.mews.com.
RevControl
RevControl is a revenue management system designed to help properties track RevPAR by calculating the total room revenue generated and dividing it by the number of available rooms. The platform provides intelligent data analysis and competitive benchmarking tools to maximize revenue per available room. Visit https://www.revcontrol.com for more information.
Hospitality Business Metrics : Guest Acquisition Cost (GAC)
Guest Acquisition Cost (GAC) measures how much it costs to attract a new guest. It includes marketing expenses, promotions, and booking fees. Understanding GAC helps owners manage marketing costs more effectively.
By tracking GAC, you can see which marketing channels work best. For example, you can identify if ads or promotions bring in more bookings. Thus, reducing GAC while maintaining bookings is key to profitability.
If your GAC is too high, you may spend more to get a guest than what you earn from their stay. This is not sustainable for business growth. Therefore, the goal is to lower GAC without reducing guest numbers. For instance, if specific advertising performs better, focus your budget there.
Keeping your GAC low and bookings high leads to increased profits. Moreover, it helps you avoid wasting money on ineffective marketing. A lower GAC means you’re using your marketing dollars wisely while still keeping rooms filled.
Revinate
Revinate calculates Guest Acquisition Cost by dividing the total marketing and sales expenses by the number of new guests acquired. This platform offers tools for email marketing, social media campaigns, and guest engagement, allowing businesses to track and optimize GAC. By reducing guest acquisition costs, Revinate helps businesses improve profitability and focus on retention. Learn more at https://www.revinate.com.
Profitroom
Profitroom helps properties calculate Guest Acquisition Cost by tracking all marketing expenses and dividing them by the number of new guests acquired. This platform integrates with marketing channels and booking engines to provide insights on acquisition costs, enabling businesses to optimize marketing spend. Visit https://www.profitroom.com for more details.
Hospitality Business Metrics : Customer Retention Rate
Customer Retention Rate tracks how many guests return for another stay. It shows if your guests are happy and satisfied. For instance, a high retention rate means guests enjoyed their stay and would likely recommend your B&B.
When guests return, it also saves you money on marketing. Instead of constantly finding new guests, you can rely on loyal ones. Therefore, this lowers your Guest Acquisition Cost (GAC) and brings in new guests through word-of-mouth.
Repeat business helps predict your income more accurately. Thus, knowing that guests will return makes budgeting easier and more reliable. Therefore, high retention is a sign of organic growth, showing that your B&B consistently delivers a great experience.
Zingle (by Medallia)
Zingle helps properties calculate the customer retention rate by dividing the number of repeat guests by the total number of guests, then multiplying by 100. Zingle’s customer engagement platform facilitates personalized communication, which enhances guest satisfaction and loyalty. Zingle has its automation capabilities, allowing businesses to streamline guest communication and retention efforts. Learn more at https://www.zingle.me.
AskNicely
AskNicely calculates the customer retention rate by measuring repeat guest activity and using tools like Net Promoter Scores (NPS) to track customer loyalty. The platform offers automated feedback requests, allowing businesses to focus on guest retention and service improvement based on real-time insights. Learn more at https://www.asknicely.com.
Hospitality Business Metrics : Online Reviews and Ratings
Online Reviews and Ratings are essential for understanding guest satisfaction and experience. The number of reviews and their average rating provide valuable insights. For instance, these metrics reveal how guests feel about their stay.
Obviously, positive reviews are crucial for attracting new guests. Many travelers rely on online feedback when choosing accommodations. Thus, high ratings and numerous good reviews build trust with potential guests.
When guests have great experiences, they often leave positive reviews. This helps your B&B stand out from local competitors. However, negative reviews can hurt your reputation, so addressing issues quickly is key.
Monitoring reviews regularly shows what you’re doing well and what to improve. Therefore, responding to both positive and negative feedback shows you care about guest satisfaction. Over time, more positive reviews can boost bookings and strengthen your reputation.
TrustYou
TrustYou aggregates guest reviews from multiple platforms and calculates an overall review score. It provides analytics and sentiment analysis tools to help businesses understand guest feedback and make data-driven improvements. TrustYou’s platform also allows properties to respond to reviews in real time, enhancing reputation management. Learn more at https://www.trustyou.com.
ReviewTrackers
ReviewTrackers collects and analyzes guest reviews from over 100 review platforms, calculating an overall rating and providing sentiment analysis. This tool helps businesses track guest satisfaction and improve their reputation by responding promptly to feedback. The platform’s robust reporting capabilities allow properties to identify areas for service enhancement. Visit https://www.reviewtrackers.com for more details.
Hospitality Business Metrics : Average Length of Stay
Average Length of Stay measures how many nights guests typically stay at your B&B. Longer stays usually bring in more revenue for your business. In addition, they also reduce turnover costs, like cleaning and admin work.
Tracking this metric helps you understand guest behavior. For example, if guests stay only one night, consider offering promotions. Special deals, like “Stay 3 nights, get the 4th free,” can encourage longer stays.
Focusing on longer stays helps reduce labor and room prep costs. Moreover, it also creates a more relaxed atmosphere for guests. Thus, the result is higher profitability and smoother operations for your B&B.
Hostaway
Hostaway calculates the average length of stay by dividing the total number of nights stayed by the number of bookings. The platform provides automated reports and insights on guest behavior, allowing properties to optimize stay lengths and maximize revenue. Hostaway also integrates with major booking channels, ensuring seamless data tracking. Learn more at https://www.hostaway.com.
ResNexus
ResNexus tracks average length of stay by calculating the total number of nights per reservation and dividing it by the total number of reservations. The platform offers easy-to-read reports and forecasts that provide inns with the data necessary to extend guest stays through targeted marketing strategies. Visit https://www.resnexus.com for more information.
Hospitality Business Metrics : Private Event Bookings
Private Event Bookings measure how many events your B&B hosts, such as weddings or retreats. These events can boost income, especially during slow seasons. Thus, offering your property as an event venue adds new revenue streams.
Expanding into event hosting also increases your visibility. People attending events may later book personal stays, growing your customer base. Therefore, this strategy helps you attract more guests who may not have considered your B&B before.
Tracking event bookings shows how well this part of your business is growing. For example, you can see which types of events bring in the most bookings. Thus, offering special packages for weddings or corporate retreats can help attract even more clients.
As event bookings increase, your B&B becomes known for more than just overnight stays. As a result, this builds a more diverse, year-round business. Therefore, a steady rise in bookings is a strong sign that you’re successfully diversifying your income.
Tripleseat
Tripleseat is a venue management platform that tracks private event bookings, including revenue generated from events. The platform provides automated tools to calculate booking trends and optimize space usage, helping properties maximize event revenues. Tripleseat also offers integration with payment systems to streamline the booking process. Learn more at https://www.tripleseat.com.
Event Temple
Event Temple helps properties manage private event bookings by providing a centralized system for tracking events and calculating event revenue. Its CRM and sales features allow for efficient communication with clients and streamlined event management. The platform also offers analytics to track booking performance and forecast future bookings. Visit https://www.eventtemple.com for more information.
Hospitality Business Metrics : Direct Booking Ratio
Direct Booking Ratio measures how many guests book through your website versus third-party platforms. Thus, a higher booking ratio means more guests are booking directly with you. Therefore, this reduces reliance on Online Travel Agencies (OTAs) and lowers commission fees.
Encouraging direct bookings increases profit margins. Moreover, it also gives you more control over guest interactions. You can communicate directly and provide a personalized experience before they arrive.
By increasing direct bookings, you can improve guest satisfaction and boost loyalty. Offering discounts or deals for direct bookings is a great strategy. In addition, making your website easy to use will help attract more direct bookings.
Triptease
Triptease calculates the direct booking ratio by dividing the number of direct bookings by the total number of bookings and multiplying by 100. It helps properties improve their direct booking rates through personalized messaging and dynamic pricing tools. Triptease’s platform integrates with a property’s website, offering a seamless booking experience and reducing reliance on OTAs. Visit https://www.triptease.com for details.
Bookassist
Bookassist helps properties track their direct booking ratio by monitoring bookings made directly through the website and comparing them to bookings from third-party platforms. This tool also offers website optimization and marketing tools to improve direct conversion rates. Visit https://www.bookassist.com for more information.
Hospitality Business Metrics : Guest Satisfaction Score
Guest Satisfaction Score measures how happy guests are with their stay. This score is based on feedback from post-stay surveys. For example, guests rate areas like service, cleanliness, and amenities.
A high satisfaction score often leads to positive reviews. Thus, happy guests are more likely to leave good feedback and return for future stays. Therefore, this boosts repeat business and enhances your reputation.
When guests are satisfied, they also recommend your B&B to others. Word-of-mouth referrals can bring in new customers without extra marketing. So, keeping this score high is crucial for long-term growth.
Tracking guest satisfaction helps you understand where you excel. Moreover, it also shows areas that might need improvement. Thus, making simple changes like improving service or adding amenities can significantly raise your score.
Improving your Guest Satisfaction Score consistently builds guest loyalty. Thus, higher scores often lead to more bookings and long-term success. Therefore, the better your score, the stronger your business grows.
Medallia
Medallia tracks guest satisfaction by collecting feedback through surveys and calculating a satisfaction score based on responses. The platform uses AI to analyze sentiment and provide actionable insights that help improve guest experiences. Medallia also offers real-time alerts, allowing properties to respond quickly to guest concerns. Learn more at https://www.medallia.com.
Qualtrics
Qualtrics calculates guest satisfaction by gathering feedback through customizable surveys and analyzing the results to determine a satisfaction score. The platform offers robust data analysis features, including sentiment analysis and reporting tools, which provide insights to improve guest experiences. Visit https://www.qualtrics.com for more details.
Tools Summary
By using these tools, bed and breakfast owners can easily track and improve key hospitality business metrics. These platforms make it simple to gather data and identify areas for growth. As a result, owners can make smarter, data-driven decisions to help their business thrive. Therefore, each tool offers features that streamline tracking of your hospitality business metrics, thus helping you focus more on guest satisfaction and profitability.
B&B Consulting
In summary, to ensure your bed and breakfast stays on the path to success, tracking the right metrics is essential. Key numbers like guest acquisition cost (GAC), customer retention rate, and direct booking ratio help you focus on growth. These hospitality business metrics also help you keep guests happy by improving their experience.
By closely monitoring these hospitality business metrics, you can make smarter decisions. This helps you build guest loyalty and strengthen your business. Focusing on these hospitality business metrics sets your bed and breakfast up for sustainable, long-term growth.
Licensed Realtor Rob Sales, and Owner of B&B Consulting, is the hospitality business advisor you need if you may want to buy or sell a bed and breakfast inn or small hotel. Contact Rob for a complimentary first conversation.