What is a hotel report?
A hotel report is a document that provides a summary and detailed insights into various aspects of the hotel business, such as operations, performance, and guest services. These reports help identify trends and support more informed decision-making. There are different kinds of reports, which can be categorized as follows:
- Front office reports: These reports are essential for daily operations. They provide insight into how different segments are performing, enabling you to adapt pricing and refine revenue management. You can review guest satisfaction reports to gauge your performance and identify areas for improvement. Additionally, you can assess your market share to see how you compare against the competition.
- Food and beverage reports: Especially relevant for hotels with bars and restaurants on-site, these reports track turnover, wastage, and overall performance.
- Housekeeping reports: These help improve operational efficiency daily and ensure room turnover is efficient, ultimately driving revenue.
- Financial reports: These provide insight into profit and loss, helping you make strategic staffing decisions. They also allow you to understand your net operating income and push your hotel's bottom line.
- Night audit reports: These include manager reports, daily forecasts, point of sale data, and taxes. These daily reports can be done automatically when you have a property management system like Mews, and help managers assess the day's performance and plan for the following day.
Why are hotel reports important?
Hotel reports are important for many reasons. They provide critical insights and data that support informed decision-making and help maintain operational excellence.
Monitor performance
Reports such as occupancy rates, average daily rate (ADR), and revenue per available room (RevPAR) track key performance indicators (KPIs) that give a clear picture of how well your hotel is performing both operationally and financially.
Make more informed decisions
Reports help hoteliers make informed decisions about pricing, staffing, marketing strategies, and resource allocation. For example, if the occupancy rate is consistently low over a certain period, hoteliers can create promotions or special deals to attract more bookings. These reports also ensure you have the right number of staff during low periods, avoiding both overstaffing and understaffing.
Drive growth
By closely monitoring ADR, RevPAR, and market segmentation reports, you can effectively manage revenue and optimize pricing strategies. These reports also help predict demand, allowing you to adjust pricing accordingly. Historical and trend-based reports assist in forecasting future demand, revenue, and expenses, enabling you to plan ahead.
Keep an eye on finances
Profit and loss (P&L) and expense reports allow you to closely monitor spending, helping to mitigate unnecessary costs. These reports ensure your hotel stays on budget and allows for adjustments when needed.
8 main hotel reports your property should use
Now that you understand the importance of reports, let's explore the different types of reports available (in no particular order).
Market segmentation
Market segmentation reports are crucial for directing your marketing efforts. Within your PMS, you can generate this report to analyze guest demographics such as age, travel purpose, and origin. This will help you understand how each group is performing and allow you to focus marketing efforts on underperforming segments.
You can also track metrics like ADR and Average Length of Stay to assess the profitability of each segment and adjust your marketing strategies to boost these metrics.
Profit and loss
Profit and loss (P&L) statements are the heart of your hotel's financial health. This report allows you to understand your net operating income and track revenue, costs, and profit margins. It's essential for making strategic decisions to improve profitability and minimize losses.
Forecasting
Forecasting reports predict revenue based on booking trends and market analysis, including your hotel's competitive set. This provides valuable insights into potential revenue and expenses, enabling you to allocate your budget efficiently and hire staff according to demand.
Room status report
The room status report is vital for tracking room conditions, such as clean, dirty, or under maintenance. It can also be used for cross-departmental communication, ensuring everyone is aware of occupancy, turnover status, and vacancies. This helps the team know which rooms to sell, and if occupancy is low, promotions can be offered.
Guest satisfaction
Guest satisfaction reports are key to understanding what you're doing well and identifying areas for improvement. By incorporating guest surveys into your communication templates, you can gather customer satisfaction scores and evaluate overall guest experience. Engagement metrics are vital for assessing your performance and pinpointing changes that need to be made.
Channel analysis
Channel analysis reports are essential for evaluating conversion rates, costs, and total revenue for each distribution channel. You can assess the performance of each channel to determine whether it's worth continuing to work with them and decide how to allocate your budget accordingly. If one channel is performing better, you can allocate more resources to it.
Restaurant sales and turnovers
For hotels with a restaurant, this report is invaluable for understanding how well your Food and Beverage sector is performing. Typically generated by your Point of Sale (POS) system, it tracks table turnover rates, average customer spending, and revenue generated per seat per hour.
Staffing
Staffing reports are crucial for managing revenue and ensuring resources are allocated efficiently. This report helps optimize scheduling based on labor costs, staffing levels, and the productivity of each team member. It also guides decisions about which staff should be retained seasonally or year-round. Ideally, you want enough staff to maintain high guest satisfaction without overstaffing, which could negatively impact revenue.
Conclusion
We've explored the importance of hotel reports and the various types your hotel should be using. Reports can significantly improve operational and financial health while enabling data-driven decisions that pave the way to success. With the right reports in place, you can better forecast and plan for the future, ensuring long-term profitability for your hotel.
Download our guide "How to Diversify Hotel Revenue"
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