As the hospitality industry becomes increasingly competitive, hotels must continuously evaluate their business performance and adapt to changing market conditions. One effective tool for measuring and improving hotel performance is your quarterly business review (QBR).
In this post, we will explain what a quarterly business review is and which components you need to include in yours to ensure maximum growth and profitability.
What is a quarterly business review for hotels?
A quarterly business review (QBR) is a meeting held by a hotel’s management team every quarter to review the hotel’s performance and define areas for improvement for the next quarter.
During a quarterly business review, the team reviews key performance metrics and data to determine strengths and weaknesses and develop strategies for improvement in line with the hotel’s annual budget. Common metrics that are reviewed during this session include occupancy rates, average daily rate (ADR), revenue per available room (RevPAR), and any other key performance indicators relating to revenue management, sales and marketing, operations, guest experience, and financial performance.
The quarterly business review is also an opportunity to discuss any challenges or opportunities that have arisen during the previous quarter so that the team can develop tactical and strategic revenue management plans to address them.
What are the key components of a successful quarterly business review for hotels?
A successful quarterly business review should include key components such as a review of revenue and occupancy performance, an analysis of market trends and competition, an evaluation of pricing and distribution strategies, an overview of guest satisfaction metrics, and a discussion of upcoming events and initiatives.
Let’s take a look now at these key components in a bit more detail. That way, you will have access to all the data you need to ensure maximum revenue and profitability for your hotel.
Revenue and occupancy performance
The first component of a successful quarterly business review is data analysis. Make sure you collect and analyse revenue and occupancy data from a variety of sources. This should include financial reports such as income statements, balance sheets, and cash flow statements. Your analysis should also include revenue metrics including daily occupancy rates, average daily rate (ADR), and revenue per available room (RevPAR). Also, make sure your analysis identifies any trends, strengths, and weaknesses that can inform and guide your future revenue management strategies.
What progress have you made in the last quarter in terms of revenue and occupancy? Have you met the revenue management objectives that you set at your last quarterly business review? If not, which challenges prevented you from meeting your goals?
Market trends and competition
Don’t forget to include market trends and competitor performance in your quarterly business review. This data is crucial for staying competitive and offering fair and consistent prices.
You can collect a lot of valuable data from industry reports, market research studies, and online resources such as TripAdvisor, Expedia, and Booking.com. A solid and reliable revenue management platform can also be a great data source for this. Make sure you collect both historical and current data to identify trends and changes over time.
Once you’ve collected your data, you need to analyse it. How is your hotel performing relative to industry benchmarks and market expectations? Have there been any notable changes in guest behaviour, market demand, or industry trends? Are you using the right technology to keep track of all this information on a daily basis?
Pricing and distribution strategies
The next important element of a quarterly business review is reviewing your pricing and distribution strategies. Reviewing this data will help you optimise your rates and overall revenue management strategies so that you can ensure maximum profitability for your hotel.
Start by collecting all your pricing and distribution data. This includes your room rates, distribution mix, and revenue by channel. Again, make sure you collect both current and historical data so that you get a fuller analysis and can better interpret any trends or changes since the last quarter.
How have your pricing strategies impacted revenue growth over the last quarter? How much revenue have you generated from your various distribution channels compared to your direct bookings? What about any discounts or offers that you might have promoted through your website or loyalty programs? What should you focus on during the next quarter to enhance your pricing and direct booking strategies?
Guest satisfaction metrics
Guest satisfaction is an important element of effective revenue management. After all, the happier your guests are, the more likely they are to become loyal, returning customers. Plus, satisfied guests are far more likely to leave you positive online reviews that boost your hotel’s reputation.
Make sure you collect and review all your guest satisfaction metrics during your quarterly business review so that you can understand the impact of your guest experience on total revenue growth. Common metrics for this include overall guest satisfaction, likelihood to recommend, satisfaction with specific aspects of the hotel such as cleanliness or staff friendliness, and your Net Promoter Score (NPS). You should be collecting all this data on a regular basis through guest surveys, online reviews, and social media monitoring.
Are there any patterns or trends? How have any guest satisfaction improvement initiatives impacted revenue and growth since your last quarterly business review? Are you meeting guest expectations? Are you aligning with industry benchmarks? Which areas of your guest experience can you enhance over the next quarter?
Upcoming events can have a significant impact on hotel revenue. Hotels that are able to anticipate and plan for upcoming events and initiatives can take advantage of increased demand and generate higher revenue.
Are there any upcoming events such as conferences, trade shows, or festivals over the next quarter? How will you adapt your pricing strategies to capitalise on this increased demand? How can you promote your ancillary services in the run-up to any upcoming events? Are there any specific needs and expectations that event attendees might have?
Actionable recommendations based on data
Make sure you define actionable recommendations based on data-driven insights to improve future performance. These goals should be specific, realistic, time-bound, measurable, and aligned with your overall business strategy.
What are your revenue and performance goals for the next quarter? How will you achieve them? Which specific strategies can you implement to overcome any challenges that you might have faced over the last quarter?
Finally, it’s vital that you use the right technology to access all the data you need to measure and monitor your progress and effectively prepare for your next quarterly business review. By leveraging technology, such as Revenue Management software, you can streamline all the aforementioned data collection and analysis processes, allowing for more accurate and comprehensive reviews. Ultimately, a successful quarterly business review based on solid and reliable data like this can help you identify key areas for improvement and make data-driven decisions that drive revenue and profitability.