As the hospitality industry becomes increasingly competitive, hotels must continuously evaluate their business performance and adapt to changing market conditions.
NB: This is an article from BEONx, one of our Expert Partners
One effective tool for measuring and improving hotel performance is your quarterly business review (QBR). In this post, we will explain what a quarterly business review is and which components you need to include in yours to ensure maximum growth and profitability.
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What is a quarterly business review for hotels?
A quarterly business review (QBR) is a meeting held by a hotel’s management team every quarter to review the hotel’s performance and define areas for improvement for the next quarter.
During a quarterly business review, the team reviews key performance metrics and data to determine strengths and weaknesses and develop strategies for improvement in line with the hotel’s annual budget. Common metrics that are reviewed during this session include occupancy rates, average daily rate (ADR), revenue per available room (RevPAR), and any other key performance indicators relating to revenue management, sales and marketing, operations, guest experience, and financial performance.
The quarterly business review is also an opportunity to discuss any challenges or opportunities that have arisen during the previous quarter so that the team can develop tactical and strategic revenue management plans to address them.
What are the key components of a successful quarterly business review for hotels?
A successful quarterly business review should include key components such as a review of revenue and occupancy performance, an analysis of market trends and competition, an evaluation of pricing and distribution strategies, an overview of guest satisfaction metrics, and a discussion of upcoming events and initiatives.
Let’s take a look now at these key components in a bit more detail. That way, you will have access to all the data you need to ensure maximum revenue and profitability for your hotel.
Revenue and occupancy performance
The first component of a successful quarterly business review is data analysis. Make sure you collect and analyse revenue and occupancy data from a variety of sources. This should include financial reports such as income statements, balance sheets, and cash flow statements. Your analysis should also include revenue metrics including daily occupancy rates, average daily rate (ADR), and revenue per available room (RevPAR). Also, make sure your analysis identifies any trends, strengths, and weaknesses that can inform and guide your future revenue management strategies.
What progress have you made in the last quarter in terms of revenue and occupancy? Have you met the revenue management objectives that you set at your last QBR? If not, which challenges prevented you from meeting your goals?
Read rest of the article at BEONx