US Hospitality Industry Landscape

Hotel Industry Success Drivers

• Based on several hotel industry insider advice, the industry's success is highly dependent on the property's location.
• The location should have a high concentration of visitors and businesses.
• Hoteliers should also pay attention to online customer reviews and respond accordingly as word of mouth is considered as a "powerful marketing tool."

Hospitality Industry Key Performance Indicators

Average Daily Rate

• The average daily rate (ADR) is a KPI that is used to determine the "average rate per occupied room."
• This metric is helpful when doing comparisons between seasons or year clusters to determine "performance over time."

Revenue per Available Room (RevPAR)

• The RevPAR is identical to the ADR but the unoccupied rooms are taken into account.
• This measure is derived by "dividing the total room revenue by the total rooms available."
• This metric can give an inkling into the success of a property in meeting the room occupancy targets.

Marketing Strategies for the Hotel Industry

• Marketers that are targeting the hospitality industry need to understand their specific challenges such as full-day operations, union-owned property rules, seasonal trends, and others.
• When marketing to the sector, it is also necessary to tailor messages based on logical hotel segmentation such as property sizes and target guests.
• Those who are targeting the industry should also ensure that they customize their social media approach based on the preferred platform of their hotel clients.

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