10 Key Marketing Metrics Small Hotels and Resorts Should Be Tracking
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10 Key Marketing Metrics Small Hotels and Resorts Should Be Tracking

“You can’t manage what you can’t measure” is a famous business quote attributed to various authors. While the original source of the saying is debatable, the meaning is certain and highly applicable to marketing. In an increasingly competitive hospitality landscape, small hotels and resorts must leverage key marketing metrics to measure the efficacy of their service model and marketing, fine-tune their strategies and ensure the effectiveness of their campaigns. As we inch closer to the fourth quarter of 2024 and the start of 2025, focusing on the right marketing metrics will be crucial to maximizing return on investment and enhancing guest experiences. Here are ten of the most important marketing metrics for small hotels and resorts to track and refer to in their service models and marketing strategies.

1. Occupancy Rate

This is a fundamental marketing metric for any hotel, indicating the percentage of occupied rooms over a specific period. Tracking occupancy rates (and identifying average occupancy rates per season) helps hotel operators understand demand patterns, manage inventory effectively, and make informed pricing decisions. Knowing your hotel’s occupancy rate and seasonal occupancy rate averages also helps hotel marketers:

  • Reveal which times of the week and periods per season generate the highest occupancy and which seasons require more incentives to fill rooms.
  • Determine how to best allocate marketing budgets and resources each season to maximize exposure and conversions based on fluctuating demand.
  • Identify which tactics to focus on and when such as when to use promotions and last-minute specials to encourage more bookings during slower periods.
  • Craft relevant marketing content that appeals to reasons why guests book their stays at different times throughout the year (i.e., family spring breakers vs empty nest couples) and that highlights the perks and benefits of shoulder season and off-season visits.

2. Average Daily Rate (ADR)

ADR is based on “revenue per rooms sold = demand” and is a vital key performance indicator that all accommodations should track. ADR measures the average revenue earned per occupied room. It is a direct indicator of your pricing strategy’s effectiveness and helps assess whether you are maximizing the potential revenue from your rooms. Knowing your ADR also helps hotel marketers:

  • Establish your hotel’s “average price” per night and per average length of stay each season.
  • Identify the maximum booking rate a guest is willing to pay per season.
  • Reveal if and when booking rates are affecting occupancy and lengths of stay.
  • Assign accurate conversion values to ad campaigns.
  • Use as a benchmark for measuring return on ad spend based on the value of bookings converted via ads.
  • Ensure promotions are effective at stimulating bookings while still being profitable.

3. Revenue Per Available Room (RevPAR)

RevPar is based on “revenue per room available = supply” and is also considered to be one of the most important marketing metrics for accommodation providers (of all sizes) to measure. RevPAR combines occupancy rate and ADR to provide insight into the overall financial performance of a hotel. It helps hoteliers understand how well they are filling rooms and how much they are earning from each room, providing a comprehensive view of operational efficiency. Tracking your hotel’s RevPAR also helps hotel marketers:

  • Compare your hotel’s RevPAR against the RevPar index of similar competitors.
  • Outline accurate financial metric goals upon which to base marketing strategies.
  • Compare the hotel’s revenue-based performance month to month and year to year.
  • Identify ways to improve a hotel’s perceived value amongst potential guests.

4. Guest/Customer Acquisition Cost (GAC) or (CAC)

Understanding the cost of acquiring new guests is critical for budgeting and marketing efficiency. GAC should be regularly monitored and optimized by analyzing which channels (e.g., online ads, social media, direct mail) drive bookings at the lowest cost. Knowing your CAC is essential for hotel marketers because it enables them to:

  • Decide on how much budget to realistically allocate to each marketing and advertising tactic to better ensure a positive return on ad spend.
  • Ascertain which advertising efforts deliver high value via generating revenue far outweighing the ad spend required per conversion.
  • Determine accurate return on ad spend (ROAS) based on actual conversion values divided by cost per customer acquisition.
  • Maximize the marketing budget by identifying the most profitable and cost-effective marketing tactics.

5. Guest Satisfaction Scores (GSS)

Guest satisfaction is paramount in the hospitality industry. Regularly collecting feedback through surveys and online reviews and quantifying this data into a guest satisfaction score will help small hotels identify areas needing improvement and maintain high service standards. Having access to your hotel’s GSS, including survey results and guest reviews and feedback helps hotel marketers:

  • Identify areas on a hotel’s website and other marketing materials where guest expectations can be better managed, including correcting or adding information about amenities, booking and cancellation policies on the website.
  • Monitor brand reputation by keeping an eye on what guests are saying online about the hotel and responding appropriately to reviews.
  • Flesh out and improve gaps in a hotel’s guest service model and marketing that may be contributing to guest dissatisfaction.
  • Track the effectiveness of customer retention and targeted marketing tactics by measuring their impact on GSS.

6. Direct Booking Rates

Direct bookings are more profitable than those made through third-party agents, as they avoid commission fees. Tracking the rate of direct versus third-party bookings can help optimize marketing strategies to encourage more direct engagements. Knowing your direct booking rates vs third-party rates can also help hotel marketers:

  • Reinforce the hotel’s marketing strategy to prioritize tactics that drive direct bookings, including improving SEO, boosting brand campaigns and content marketing that encourages repeat bookings.
  • Identify potential cross-referral opportunities that don’t require a finder’s fee.
  • Identify which marketing tactics are resulting in the most direct versus indirect bookings.

7. Website Conversion Rates

The effectiveness of a hotel’s website can be gauged by its conversion rate, which measures the percentage of visitors who complete a booking. Improving the website’s user experience and streamlining the booking process are key areas for potential growth. A website’s conversion rate is one of the most important marketing metrics for small hotels and resorts to track because it helps hotel marketers:

  • Establish benchmarks for tracking website performance following redesigns, SEO and content improvements.
  • Compare a hotel’s website conversion rate against the industry average.
  • Determine if and when visitors are dropping off in the booking/conversion journey and why.
  • Continually improve areas of the booking/conversion journey as needed and identify the effectiveness of each adjustment.
  • Improve overall website performance, which may include reformatting landing pages, improving website security, load times, mobile performance, captivating imagery and up-to-date content that builds guest confidence.

8. Email Marketing Performance

For hotels that employ email marketing, tracking open rates, click-through rates, and conversion rates from each marketing email is essential. These metrics provide hotel marketers with valuable insights into:

  • The effectiveness of a hotel’s email content in encouraging bookings.
  • Which subject lines and topics tend to generate the most open rates.
  • The best days and times to send guest newsletters, based on open and click-through rates.
  • The ideal frequency for sending marketing emails.

9. Social Media Engagement

Social media is a vital part of hotel marketing due to its ability to help increase a hotel’s exposure and nurture guest relationships. Engagement metrics such as likes, shares, comments, and followers on platforms like Instagram and Facebook can indicate brand strength and guest engagement. It can also help hotel marketers:

  • Identify audience demographics to target with boosted content and social media ads.
  • Gauge which imagery and content gain the most traction.
  • Measure the effectiveness of “brand building” social media tactics, including social media exposure and community-generated cross-promotion.
  • Spot opportunities where a resort’s online approachability and guest relationship nurturing can be improved.

10. Net Promoter Score (NPS)

NPS measures customer loyalty and the likelihood of guests recommending your hotel to others. A high NPS often correlates with repeat bookings and increased referrals, which are crucial for long-term success. Tracking your NPS helps hotel marketers gain insight into:

  • The potential lifetime value per happy guest.
  • The strength and potential of a hotel’s reputation amongst past and potential guests.
  • The likelihood of guests returning.
  • Tactics and incentives that can be used to increase positive guest reviews and referrals.
  • If and when customer loyalty needs improving.

Focusing on these marketing metrics will allow small hotels and resorts to make data-driven decisions, enhance guest satisfaction, and improve overall profitability. By continuously monitoring and analyzing these key performance indicators, hoteliers can adjust their strategies in real time to stay competitive and thrive in the evolving market.

Do You Have Questions?

Do you operate a hotel or other hospitality and tourism-related business and have questions about what metrics to track, how to boost bookings and where to focus your marketing resources? We’d love to hear from you! Contact us online today or click here to schedule a call with us.

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