Simple Metrics for Small Hotels

Running a Small Hotel Isn’t Easy

There’s always something to manage—bookings, check-ins, guest reviews, staff, social media… and it feels endless. But success isn’t just about filling rooms. It’s about making every part of your property work smarter, whether it’s guest rooms, dining spaces, or your lobby.

Here’s a quick breakdown of key metrics to keep your hotel running smoothly that you may not be using—and some ways AI can lighten the load.

Occupancy vs. Utilization: Are Your Spaces Pulling Their Weight?

• Occupancy:?How many rooms are booked overnight?
• Utilization:?How often your spaces—like rooms, lobbies, or restaurants—are actively used.

Example: Do you have guests checking out at 10 a.m. and the next ones arriving at 4 p.m.? Offer early check-ins or late check-outs for a small fee. Or rent out your lobby as a coworking space during the day—every hour can become revenue.

How AI Can Help:

Use AI to predict peak times for check-ins and check-outs so you can better offer add-ons like early check-ins.

AI-powered scheduling tools can help you manage space availability efficiently.

RevPAM vs. RevPAR: Don’t Just Focus on Rooms

• RevPAR:?Tracks room revenue only.
• RevPAM:?Measures total revenue from all sources—rooms, meals, events, and more.

Example: Is your restaurant empty after breakfast? Offer lunch to local workers or host pop-up events in the evening. Every meter of your hotel can generate income if you get creative.

How AI Can Help:

• AI can analyze which times of day your spaces are underused and suggest revenue opportunities.
• Use AI to recommend upsell opportunities to guests, like meal packages or event tickets.

Daily Guest Spend vs. ADR: Look Beyond Room Rates

• ADR:?Shows the average room rate per night.
• Daily Guest Spend:?This captures everything a guest spends during their stay—meals, drinks, parking, and more.

Example: A guest books a room for $150 but also spends $40 on dinner, $25 on drinks, and $10 on parking. Tracking total spending gives you ideas for bundling services, like packages that combine dinner with a bike rental.

How AI Can Help:

• AI can automatically track guest spending patterns and suggest personalized offers to increase their total spend.
• Use AI-driven tools to create dynamic package deals based on real-time trends.

Guest Acquisition Cost (GAC): What It Really Costs to Get Guests

• What It Is:?Tracks what it costs to attract a guest (e.g., OTA fees or marketing expenses).
• Why It Matters:?High costs eat into profits, so finding ways to lower them is key.

Example: If you’re paying a 15% commission to an OTA for each booking, offer discounts or free breakfast for direct bookings through your website to save money.

How AI Can Help:

• AI tools can help you optimize ad campaigns, lowering your marketing costs.
• AI chatbots can engage visitors on your website, guiding them to book directly.

Average Length of Stay: Longer Stays, Better Business

• Why It Matters:?Longer stays mean fewer check-ins and more chances to upsell services.

Example: If guests usually stay for two nights, offer discounts for booking three. Have a coworking space? Create a package for remote workers with extended stays and workspace access.

How AI Can Help:

• AI can identify trends in stay length and suggest discounts or packages to encourage longer stays.
• Predictive AI tools can help forecast demand and adjust offers in real time to fill gaps.

NPS: Know How Happy Your Guests Are

• What It Is:?NPS (Net Promoter Score) measures how likely guests are to recommend your hotel.
• How It Works:?Guests rating you 9-10 are “promoters,” and 0-6 are “detractors.” Subtract detractors from promoters to get your NPS.

Example: If guests seem happy but your NPS score is low, the problem might be the check-in process. Small changes, like mobile check-ins or a welcome drink, can make a big difference.

How AI Can Help:

• AI can track guest reviews across platforms and alert you to trends that affect your NPS.
• Automated surveys can collect guest feedback right after check-out, helping you address issues quickly.

Staff Turnover Rate: Happy Staff, Happy Guests

• What It Is:?Tracks how often employees leave.
• Why It Matters:?High turnover disrupts service and is expensive to manage.

Example: Flexible schedules and small perks keep employees happy, which means they stick around longer. Fewer staff changes mean a smoother guest experience.

How AI Can Help:

• AI scheduling tools can create optimized work schedules, giving staff more flexibility.
• Use AI-driven insights to identify burnout risks and take action before employees leave.

eNPS: Your Staff’s Happiness Score

• What It Is:?eNPS measures how likely employees are to recommend working at your hotel.

Example: If your eNPS is low, automate repetitive tasks—like check-ins—so your team can focus on guests. Happy staff means better service, and better service means happy guests.

How AI Can Help:

• AI can automate tedious tasks, making work more enjoyable for your team.
• Use AI surveys to gather feedback and make data-driven decisions to improve the work environment.

Final thoughts

Running a hotel isn’t just about booking rooms—it’s about making every part of your property work for you. Metrics like RevPAM, Daily Guest Spend, and NPS help you see the full picture beyond just occupancy or room rates.

What metrics have you been using that have helped? And which would you like to try to use?