Sleep Soundly With Our Top Accommodation KPIs

Posted on 10th August 2017 in KPIs

Written by Freya Hughes

Running an accommodation business takes a lot of teamwork and a finger on the pulse. Ensuring guests have a pleasant stay and keeping an edge over the abundant competition is a challenging but rewarding job. Working in sync with the other staff is key, so we’ve put together our top accommodation KPIs to keep the harmony.

You have to keep your standards high so customers return. A competitive industry, it’s crucial you stand out for the right reasons. A little while back we spoke to one of our partners Euro Hostels, whose Managing Director William McClelland said, “In the industry and sector we operate in we have to be constantly evolving to keep up with the pace of the industry.” When keeping an eye on industry developments, William needs reliable software to present his KPI results to his board members. That means KPI measurement is an absolute must, but which ones are key to track? To get up to the high level Euro Hostels operate at, let’s investigate the top accommodation metrics for you to measure, so you can be sure to have a restful night.

Read the full Euro Hostels case study here


While you’re here, visit our KPI Library and browse our industry-specific KPI lists for some extra inspiration.


Room bookings by channel %

This metric will show you how effective your marketing efforts are. By calculating this as a percentage you can see a clearer picture of each channel’s relative contribution over time, and more effectively monitor channel performance across multiple periods. Dividing this up into your different channels, like phone, email and booking forms, will show you if you need to make some effort to update your website. If you’re experiencing a low rate online, you should take steps to boost your SEO, think about investing in Google Ad Words and up your social media game. Booking forms on websites make for less time spent on the phone, which could then free up staff to perform other crucial tasks. Learn to calculate your room bookings by channel here.

Occupancy %

This KPI measures the number of occupied rooms relative to the total number available. As a result it is an effective means of measuring how efficiently the resources available to the company are being utilised. A low occupancy % may indicate that your business is struggling to attract customers and needs to consider alternative ways of marketing itself.

Euro Hostel’s bunks have a modern and slick aesthetic

A high % can alludes to a particularly strong strategic approach. You need to be filling rooms so aim for a high percentage. Occupancy is all well and good, though without earning a good revenue from each occupant your business will struggle. Find out how to work out your occupancy % here.

Room revenue per available room

This is a core metric for hoteliers as it gives a clear picture of how effectively rooms are being utilised as a means of revenue generation. If your room revenue is low, while your occupancy is high, your pricing is amiss. You must up your prices for your business to survive.

If both your room revenue and occupancy are low, then there’s a big problem you need to fix. Your hotel or hostel isn’t attracting customers and you need to find out how before your business pays the price. Are you not hitting the mark with your quality of service? Are your staff becoming complacent? Is your establishment in need of a revamp? Updating the way you operate, and the aesthetics of your business, is key. Of course if you have a high room revenue and a high occupancy, then keep it up! Work out your room revenue per available room here.

Average daily rate

This is a great measure of your business’ financial health. Your Daily Rate is the amount of revenue which you are generating per day, per occupied room. The higher this figure, the more you are earning. By measuring this as an average, periods of high and low occupancy are combined together in order to give a truer figure of how much money is being generated on a daily basis.

If this is a low figure, you need to take a serious look at what’s going on inside your business. You should be strategising for success, so start by trying to up the results of this metric. Understanding this figure is essential in order to optimise financial performance. Calculate your average daily rate here.


Get more from your KPIs

Start your free trial