With two very unusual years behind us, it has been a challenge for many hoteliers to predict their performance KPIs for 2022. In order to benchmark correctly, hoteliers must look back to before the pandemic to gain valuable insights.
Here we outline some tips and strategies for hotel benchmarking in 2022.
What to Benchmark 2022 data with?
Just using 2021 data will not cut it, as the circumstances of this year in many markets are so different from last year’s. With travel rebounding, 2019 data can now serve as a point of reference. So, using both 2021 and 2019 data will help you better understand where you stand. To ensure that ReviewPro clients can better analyze and compare their results, ReviewPro recently extended its date range from three years to four years, so hospitality experts can now also benchmark using 2019 data. Why is this important?
For example, when we look at the global data for Q1 2022, we can see that there is an increase in review volume of 46.5% compared to Q1 2021. However, when we compare our results to Q1 2019, we can see that results are actually still 36.23% under what we were used to seeing.
When we look at how positive reviews are, we can see that compared to last year, reviews are 0.3 points more positive. However, compared to 2019, we can see that the difference is much bigger, and reviews are now more negative than they used to be.
For better operational decisions, hotel benchmarking is key. Regularly tracking and analyzing your performance will allow you to step in on time when a negative trend arises to ensure it does not further damage your performance.
Why Should Hoteliers Benchmark Performance?
Hotel benchmarking allows hoteliers not only to track their performance over time but also to understand how it compares to the market. This way you can understand in what areas you are underperforming, so you can better prioritize improvements.
What Should Hoteliers Benchmark?
Key metrics hoteliers use for benchmarking are ADR, occupancy, and website conversion. However, other important metrics to keep in mind are guest satisfaction and guest experience. In a complex landscape where hoteliers are navigating a staffing shortage and inflation, the guest experience is what will set you apart.
To benchmark guest satisfaction levels, key metrics to compare are the Net Promoter Score ®, and the Global Review Index ™. The Net Promoter Score ® is used to understand how likely guests are to recommend you. The Global Review Index ™, on the other hand, will give you an accurate representation of how you are performing online at a specific moment in time.
How Do You Benchmark Your Hotel Competition?
Another important element of hotel benchmarking is comparing your performance with that of your competitors. Especially in a moment where historical data is lacking, looking at what is happening around you can give you a clear indication of your performance.
ReviewPro’s Competitive Quality Index™ (CQI), for example, is a score that will show you how much you are under or over-performing in comparison to your key competitors. Furthermore, you can compare key metrics like GRI™ and NPS® to further understand where you rank amongst online reputation and guest satisfaction.
As categories like service, staff and value are becoming increasingly important, you can further examine your performance for these specific categories and see how you rank in terms of positive mentions.
Want to learn more about hotel benchmarking?