The recently published white paper Hotel Inflation Report 2023 reveals that the hotel industry has effectively managed inflation and passed on rising energy and labor costs to guests. Managing costs and maintaining profitability is one of the industry’s greatest strengths.
Created by SuitePadthe main European supplier of tablets in the room for the hospitality industry and an expert in digital communication for guests, the report also reveals that this successful cost management applies only to the Average Daily Rate (ADR) and not to complementary services. While the average daily rate (ADR) in Europe increased by 18.5% to USD 148.9 in 2022 compared to the previous year, the prices of additional services such as breakfast, room service and spa treatments spa only increased by an average of 7%.
“A 7% increase in prices for additional services is relatively high, but it remains below the current inflation rate of 9.2% in the euro area and seems even more subdued compared to the ADR increase. says Moritz von Petersdorff. Champion, co-founder and CEO of SuitePad.
RECOMMENDATION: OPTIMIZE SALES
”Our conclusion and, at the same time, our recommendation to the hotel industry is to review the current price of the additional services mentioned above, the upselling, and increase it if necessary. After all, if a guest is willing to spend 20% more on their room, for example, they should also be willing to pay 10% more for breakfast.” says v. Petersdorff-Campen. The Hotel Inflation Report differentiates between individual ancillary services and their prices, considers the different star ratings, and provides a comparative analysis of your services and prices.
USE GUEST DATA AND INCREASE ADDITIONAL REVENUE
SuitePads are used in more than 1,000 hotels worldwide, spanning more than 30 countries, providing valuable data to analyze and optimize guest behavior in more than 70,000 hotel rooms. The cloud-based software allows hoteliers to seamlessly integrate an easy-to-use booking tool for additional services such as room service, spa treatments and much more to their in-room tablets. The hotel management independently sets the prices for these services and can adjust them at any time. SuitePad uses this data to gain unique insights into pricing and guest behavior to help the hospitality industry maximize its revenue potential.
