Data in the Comp Set Report

 

Hi Beautiful Hoteliers,

As we already know about what the hotel competitor set is (click here just in case you missed it), now let's go deeper and see how we can fill all the columns with only two pieces of information we have. What I'm tryin to do now, is to explain it as simple as it can be. I believe I don't have to explain it too detail, such as what is room revenue? What is Room sold? 
C'mon, it looks like I'm mocking you guys if I do that, right?

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Ok, above are the easiest part, now we go the "just a little bit more" mathematicals.

Since the distance now is getting further and further from the first column, hence, I will hide the unnecessary columns so we can focus on each column we will discuss.

Next, we go the "Market Share" columns. Just if you still a bit confuss about it, Market share is the percent of total rooms we have or sell compating to our competitor. Let say the total room available of our Compset is describe as "A Whole Donut", then, how much part of that donut is ours? 

• Fair Market Share : Will be counted from Available Room. Means, unless the compset is renovating their propery to add more rooms, the percentage will not going to be changed. It will be static.
• Actual Market Share : Base on the Room Sold, so it will be dynamic everyday.

Fair Market Share

Actual Market Share

Now, we are here, at the last three columns that...even MANY of the night receptionists don't know what are those. Yups, it is true. Why? If you are a Manager, ask yourself, why?

So let's get the detail of those "unknown" columns, and let's make it not so theorytics. All those 3 indexes are Hotel's performance metrics. We can say, it is the KPI ( Key Performance Index) of this whole report. Hell yeah you "lazy to learn" night receptionist!! Hahaha....noooo, I'm just kidding, guys. Yups, those last 3 columns is the heart of the report. It shows how each property is performing. As it called as index, thus, the expected score is 1 (some hotels make it as "100"). If below one, we may tell that the property is performing below than expected. And vice versa, if above one point, you answer it yourself. Now let's peel it down one by one. Conclusion, those indexes are the measurment unit that is used to show how the property is performing.

Note:All other data MUST be filled properly, even if only 1 data input incorrectly, it will affects to one whole report.

MPI : Market Penetration Index

This is to measure the score we have, base on the

Occupancy Percetage.

ARI : Average Rate Index

This is to measure the score we have, base on the

Average Rate

RGI : Revenue Generation Index

This is to measure the score we have, base on the

RevPAR

Finally, the very last column in the report. RGI Rank. Why only RGI that is ranked?

As its name, it is a "Revenue Generation Index". So we may say, this is the factor that mostly will generate the revenue, let us put aside how many rooms we sold, or how much total revenue that we had. RevPAR is considered as the most key point of the Room Revenue Management. Why ? Simple, because RGI blends MPI and ARI. Example, you may have a good Occupancy %, but you suffered with your Average Rate. Or vice versa, you might increase your room rate, but suffered to get your guest to stay in your hotel so the occupancy is low because of the higher Room rate you set. And with RevPAR, as I said above, it blends both MPI and ARI, so you get a better result of how your hotel is performing. Hence, RGI is the only metrics that is ranked, from this very last column, we may see directly the big picture of all the compset is performing against one another.

Well guys, that is it. Hope this can help you. Again, I will be more than happy to hear your feedback, comment, or even any critics. 

Lobby Lizard
It is okay to move slow, but make sure you move forward