ADR, RevPAR and STR, sounds too much? Ever faced a situation to look at a STR report (also said as Star Report) and felt like you were somehow trying to read an alien’s language?
Amid all the hotel business abbreviations and numbers, it’s anything but difficult to feel somewhat lost. In this article, we’ll try sharing a few hacks on opening the fortune trove of information inside your STR report whether your hotel chain belongs to North America, Asia Pacific or Europe.
When you can peruse reading an STR report, you can apply your insight about your hotel market’s compset and the market trends to your own winning strategy, which will assist you with meeting your occupancy and revenue goals. But, the STR report doesn’t only suffice to take your hotel performance to the par next level.
When you’ve aced this one, you’ll need to dive deep into the real-time data details from an accounting solution built for hotels, like ‘Nimble Property’.
What actually is an STR (STAR) Report?
We should rewind a little bit; what precisely is an STR report? Developed and created by the industry analytics firm renowned as Smith Travel Research. The STR report is a benchmarking tool, that allows you to compare your Hotel’s Performance against the same set of identical hotels.
The report is normally released each Tuesday and is conveyed in digital design and format, however, you can likewise receive reports on a month to month or yearly basis wise. So as to get your STR report, hoteliers like you must submit hotel performance information (like everyday occupancy and ADR) to the Smith Travel Research, who at that point assembles the entirety of the information they get into the perfectly crafted and aligned STR reports.
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You can find your own Hotel’s Performance information in your property management system (PMS), so the genuine bit of leeway to taking a gander at an STR report is seeing how your hotel is performing against other properties. To do this, STR utilizes anonymized information from your actual competitive set, which is a hotel group that you decide for comparison purposes. We’ll speak progressively about picking a compset right below.
As the STR report utilizes an assortment of metrics to show the hotel performance data, here’re a couple of the principal terms that you’ll see all through the STR report:
- Occupancy = Rooms Occupied/Total Number of Rooms. The Hotel Occupancy is communicated as a percentage, as 78%.
- ADR (Average Daily Rate) = Your Total Revenue/Number of Sold Rooms. ADR is nothing but the average room rate sold for a particular timespan.
- RevPAR (Revenue per Available Room) = Your Total Revenue/Total No. of Rooms. RevPAR can likewise be determined and calculated as ADR x Occupancy.
You’ll likewise observe your Hotel’s Performance determined as an index, which gives you whether your Hotel’s Performance fruitful or more regrettable over your competitive set. Generally, an index is determined by dividing your hotel’s info (occupancy, for instance) by the competitive set’s info (the average of all your competitive set’s hotel occupancy numbers), which altogether multiplying by 100. If your hotel group scores higher than 100, then it’s good news – It means you’re outperforming your competitive set or actually capturing more than your best share. On the off chance if your index is underneath 100, at that point you’re not gaining a considerable amount and have some space to improve.
Selecting the Optimal Compset
All together for the STR report to give important data, you have to choose an appropriate competitive set. Your hotel management team can get deceived by an STR Report in the case if they have picked an inappropriate or wrong Compset. A solid Compset ought to incorporate 3 to 5 hotels with the following accompanying qualities:
- Situated inside the equivalent land territory (special cases could be for hotels situated in extremely remote territories or certain airport hotels which contend with different markets)
- Selling at similar rates
- Offering amenities of a similar kind
- Focusing on a similar sort of guests
Remember that you can generally change your competitive set, so it’s alright if your first change isn’t great.
Benchmark EVERYTHING from ‘ONE PLACE’
One report for one individual hotel may suffice, but you run a hotel chain it becomes tricky to know the pulse of the entire performance. Measuring and benchmarking will plunge to a never happening thing. But a hotel accounting software like Nimble Property lets you import all your properties’ STR data into a consolidated interface, letting you view the entire competitive set and know where your position stands.
Seamlessly, you can view your entire hotel business portfolio’s occupancy %, RevPar, and average daily rate (ADR) performance against your chosen aggregated competitive hotel selection.
In Nimble, the STR (STAR) Program Widget really adds value to your hotel business as it stands tall as the custom-built revenue management tool, precisely designed to access and track daily, monthly, weekly competitor analysis.
Just within few clicks, you can easily import the entire STAR data directly in the system by downloading it from your STAR Info provider and within no time generate effective STR reports for the desired time period selected.