How to secure revenue growth in your hotel by monitoring alternative KPIs

by Beonprice - 25 November, 2022

There are a number of strategies you can use to secure revenue growth in your hotel. Some of the most effective include creating a fair pricing strategy and promoting your ancillary revenue streams. But it’s equally important to understand how your revenue is impacted by the experiences of your guests. That way, you can identify factors that could be preventing you from boosting your total revenue. And the best way to do this is by regularly tracking revenue growth KPIs focused on guest satisfaction.

Let’s take a look at these revenue growth KPIs in a bit more detail. 

Create a fair pricing strategy to boost revenue growth

Before you can focus on tracking your KPIs, you first need to make sure your prices are optimised. This is important because if a guest feels that they didn’t pay a fair price, then they will be unlikely to return, even if they had a great experience. It’s all about making your guests feel they are getting value for money

When it comes to establishing your prices, there are a number of different strategies that you can use as part of your wider revenue management approach. Most hotels rely on a combination to help them find a fair price for their rooms.

These usually include:

  • Competitor pricing
  • Forecast-based pricing
  • Segmentation pricing
  • Occupancy-based pricing
  • Incentive-based pricing
  • Length of stay pricing
  • Hotel cancellation pricing 
  • Upselling, cross-selling, and rate-parity pricing

Whichever methods you rely on, one of the most effective strategies to boost revenue growth is ensuring that your prices are optimised, both for your business and for your guests. This means creating a fair pricing strategy that appeals to potential customers whilst still making you a profit. And this can be difficult to determine without doing your research and using the right revenue optimisation software.

For one thing, your fair pricing strategy needs to be fluid. It needs to take into account market supply and demand, time of year, your different segments and your competitors. It also needs to reflect the level of quality that you are able to offer your guests, and what they perceive to be fair. Plus, you need to take into account your online reputation, and the rates, quality and reputation of your competitors. 

At Beonprice, we have developed a unique Hotel Quality Index™ (HQI™) that you can use to evaluate your hotel’s reputation and market positioning in real time. And this data can help you identify what a guest is willing to pay for the quality that you offer. And that way, you can match the expectations of your customers with your prices, helping you create a fair pricing strategy that sells rooms.

Download the Total Profit Checklist now and become the revenue superhero!

Monitor the right revenue growth KPIs

Once you determine what a fair price is for each of your customer segments at any given time, the next stage in securing revenue growth is monitoring the right revenue growth KPIs

It’s obviously important to keep your finger on the pulse of your core metrics. This includes your RevPAR, occupancy rates, and your ADR, amongst others. But there are a number of other lesser-known KPIs that can provide you with valuable insights into customer satisfaction levels. These include your RevPAC, your repeat customer rate, and your Net Promoter Score. These metrics are important because the guest experience has a direct impact on your revenue. After all, the happier your guests are, the more likely they are to book again, spend more money, and promote your hotel to their family and friends.


Your RevPAC is your revenue per available customer. In other words, it’s the total revenue that each guest generates, including any ancillary services that they purchase. This metric is important because it takes into account all the money that each guest spends at your hotel, not just how much they pay for a room.

You can calculate your RevPAC by adding up the total revenue generated by all your guests in a given period (such as a quarter or a year). Once you’ve done that, simply divide this figure by the total number of guests that you have had during the same period. This will give you the average spend of each guest. You can then use this metric to calculate where you could encourage more revenue growth. For example, you could offer room add-ons or upgrades and promote additional ancillary services. 

Repeat customer rate

Your repeat customer rate is the number of guests that return to your hotel. It’s a good measure of how happy your customers are and whether their experience has been good enough to encourage them to come back again. And this is useful information as returning guests often spend more money on ancillary services. This is because they have already established a level of trust in your hotel’s reputation. Plus, they can be great brand ambassadors for your hotel. And this can be a great way to secure additional revenue growth. 

To calculate your repeat customer rate, you just need to divide the number of guests that return in a given period (daily, weekly or monthly) by the total number of guests for that same period of time. Once you have this figure, simply multiply it by 100 to convert it into a percentage. 

Net Promoter Score (NPS)

The final revenue growth KPI that can help you track the experience that guests have at your hotel is your Net Promoter Score. 

A Net Promoter Score, also known as an NPS, is a scoring system that divides your guests into three categories depending on how happy they have been during their stay. These categories are promoters, passives, and detractors

To calculate your NPS you need to collect feedback from your guests through a simple survey. The survey consists of one key question: 

On a scale of 0-10, how likely are you to recommend this hotel to a friend or colleague?”. 

Guests who score between 0-6 are detractors (unsatisfied guests). Guests who score 7-8 are passives (neither happy nor unhappy). And guests who score 9-10 are promoters (satisfied guests). 

The more promoters you have, the more loyal your customer base is likely to be. And this not only means that there is a higher chance that they will become returning guests, but they are also more likely to recommend your hotel to others. And this is the best way to secure steady revenue growth in your hotel.

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