The What, Why, and How of Hotel Benchmarking

Benchmarking is a widespread observe in virtually all types of business.

Nonetheless, this is not an straightforward feat, until eventually and unless of course you fully grasp info and have time to spend. And perhaps this is the reason why a lot of companies overlook benchmarking.

Alright, forget about about other firms.

Let us discuss about benchmarking in lodges.

Did you know that benchmarking performs a significant role in accommodations way too? If not, never head I will enable you wrap your head all around this quirky resort business affair.

At any time considering that accommodations started out leveraging details to elevate their business, they also received exposure to several other factors, and benchmarking is absolutely one of them.

Originally, it was not seriously a have to-have for hotels but with time and escalating level of competition, benchmarking turned crucial.

But what is it really and how can lodges leverage it? All of it, we are likely to examine in this site.

So, with out further more ado, let’s acquire a deep dive and decipher the principles of hotel benchmarking.

What is Hotel Benchmarking?

Lodge benchmarking is about examining and comparing your hotel’s efficiency with the industry’s best players and the top rivals. The purpose to do this is to establish the place you stand in the current market and how you can boost your total business.

Only put, the benchmarking process is made use of for the excellent analysis of a property in the resort marketplace.

Let’s have an understanding of a lot more about this and its importance in the even bigger photo.

Why Is Benchmarking Good for Motels?

In the lodge business phase, you need to have to fully grasp the market and the aspects that are associated. It could be the chance factor or even the added benefits you are very likely to enjoy.

This is, even so, not attainable when you do not stick to a specific method and that involves evaluation and comparison.

Benchmarking is a great way to learn about the space you are venturing into or presently operating in.

For case in point, you may well consider your hotel experienced finished a excellent thirty day period, but what if everyone else did considerably improved than you?

This is specifically what benchmarking clarifies for you.

No doubt, you have to rejoice a prosperous financially rewarding thirty day period after all, it matters.

But from a business viewpoint, you have to search for the bigger photograph. Small revenue may possibly appear pleasant originally, but to contend in an marketplace that retains on evolving, you need to have to find out extra in-depth.

The advantages of benchmarking in the hospitality marketplace are enormous, and significant hotel brands are excellent illustrations of it. They continue to keep on evaluating their residence and any time it is needed, they make major alterations in the way they function.

Not to mention. Small and medium-sized lodges can also experience the gain. All they need to do is perform it by the e book.

Recommendations to Get Far better at Resort Benchmarking

Hotel benchmarking is a extensive subject to cover at one particular go and it might overwhelm you. So, maintaining points a tiny light-weight, I am going for walks you by means of the simple nonetheless most critical tips.

If you get improved at them, you can ace the superior benchmarking approaches as well.

1. Fully grasp the industry conventional

The market you focus on and run in is the significant supply of facts for your business. This means, you ought to know the ins and outs of it.

Knowing no matter if the current market is embracing new traits is likely to make your benchmarking procedure a tiny smoother.

Not just that.

You also have to have to complete forecasting and identify trends that are very likely to emerge in the coming months or several years. And then, decide whether your resort is organized for it. If not, come across approaches to continue to keep matters aligned.

2. Know who you are competing in opposition to

The following popular part of benchmarking in the hotel market is knowing who you are competing versus in the marketplace.

Have you at any time witnessed boxers preparing for a match? It’s not just their technique, but they also sit with their coaches to comprehend their rivals. Analysing what their rivals are good at and what they lack permits them to improved put together for the stop game.

This goes the identical with lodges as perfectly and you as a hotelier need to spend sufficient time and effort to study about your competitors in the field.

If you want to master how to do it the right way, we have a focused piece of report on this — How to Perform Resort Opposition Evaluation?

3. Find out about the pertinent metrics to think about

Information is at the coronary heart of resort benchmarking.

No, wait. Permit me place it in different ways.

Not all knowledge is at the coronary heart of hotel benchmarking.

Of training course, it is superb to have accessibility to many varieties of hotel benchmarking metrics. But we will have to understand that not just about every piece of facts is significant. Some might just squander time.

Indicating, you have to consider only the suitable metrics.

For most motels, occupancy fee and ADR are two metrics that can’t be overlooked. Even so, you can even now extend a little bit by including metrics like RevPAR, ALOS, direct channel functionality, OTA performance, market place penetration index, and so on.

Deciding upon and monitoring the appropriate and suitable hotel benchmarking metrics offers you with a sturdy base to make informed conclusions. In switch, you get to boost the visitor working experience, increase bookings, and maximize your all round earnings.

4. Slim down on the information as considerably as probable

Going wide on your data assessment will make things a little intricate for you. So, to make the assessment powerful you need to slender it down.

For instance, if you’re attempting to analyse the market penetration index, really do not do it typically in a broad or imprecise sense. Instead, slim it down to a precise demographic. Possibly you want to know the results based mostly on area or perhaps you want it by visitor segment.

Regardless of what is the situation, make certain you are distinct with your assessment. The a lot more you drill it down, the improved insights you are heading to get.

5. Look at your results with earlier knowledge

Comparable knowledge is important when you’re doing benchmarking for your hotel.

I am certain you have some kind of facts from the earlier or prior intervals. It may well not be as insightful as the recent 1, but in no way intellect.

And now, when you get insights from your recent details, the upcoming issue you require to do is compare both of them.

Comparing information not only delivers hotel companies context to have an understanding of development styles and developments but also establish acceptable projections.

And this provides me to the subsequent place.

6. Define a roadmap for foreseeable future operations

Now that you have a reasonable projection, it is time to put together an define of the roadmap in advance.

What are the areas you’re going to get the job done on?

What are the tactics you are going to apply?

Are you going to concentrate additional on direct reservations or OTA bookings?

How do you program to penetrate extra in the marketplace?

Different other issues occur. And you as a hotelier should have an outline in put to address all of them.

Outlining your roadmap lets you to construct and arrange methods in a sequential manner and powerful stream.

7. Measure your performance

Very last but not the minimum, your effects will have to be measurable. If it is not, then you cannot boost even further.

On all the steps, you want to measure your effectiveness. The purpose is, general performance measurement helps accommodations determine their strengths and weaknesses, top rated significant accomplishing features, and places for improvement.

If your figures do not come out the way you expected, you may possibly want to go again and tweak things. If they are up to the mark, then you have to increase the bar and try out accomplishing a thing larger.

The hospitality market is really competitive and to foster improvement, you require to kind allies with overall performance measurement.


Are there distinct types of lodge benchmarking?

There are commonly 5 principal types of benchmarking in the hotel industry:
– Inside
– External
– Functionality
– Strategic
– Method

Can any hotel leverage benchmarking?

Certainly, any resort that would like to continue to be in advance of its competitiveness in the market can perform benchmarking.


Benchmarking in the hospitality market is not new.

When I was researching this topic, I recognized how important it has become for the resort marketplace, recently.

Accommodations are investing a handsome volume of cash in location up teams and processes to get much better at benchmarking.

With time, it is confident that this is heading to grow to be a important part of the resort field. And for lodges to continue to be aggressive and successful, benchmarking is going to be their power.

In this blog site, the data that is becoming delivered is credible ample to get you commenced with resort benchmarking. In addition, in the coming month, I will try out to cover this topic in additional depth to help you reap better positive aspects.

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