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Tuesday, January 28, 2014

Travel and Tourism/Hotels and Hospitality

Market brief for Tuesday, January 28, 2014

     So, where exactly today is the travel, hospitality, tourism, and hotel industries heading?  Peabody hotels is seeking expansion, a wonderful and enticing looking brand.  Chicago Four Points by Sheraton is being talked about as a Marriott AC brand possibility. 
       Occupancy, average daily rate and revenue per available room are worth the look anew?  Perhaps, new perspectives can dawn even at the completly basic concepts level, though dawn they will only perhaps. 
     Occupancy is the eternal desire pf management, because occupancy measures the attractiveness of the hotel property and brings dollars into revenue. 
     The average daily rate is variable or fixed depending upon the management team’s descision making process. Higher prices per room when demand is peaking and lower prices during low seasons might stmulate many as a business model.  Or, the rate per room is always at a fixed and known price every day of the year no matter high or low season.  Hypothetical hybrid models always up for discussion and exploration. 
     Revpar is a basic metric within the hotel and hospitality industry meaning the revenue per available room.  It is derived by musltiplying the average daily rate by the occupancy value for that room. 
     The numerical values of these essential terms in our industry guide management’sestimations of a particulat property and shed light on needs that may become evident if the values are too low. 


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