Maximizing Your Ski Resort Hotel's Success with These 7 KPIs

Are you looking to improve your ski resort hotel's performance? Do you want to track and calculate the metrics that matter most? As a successful serial entrepreneur in the hospitality industry, I've identified the top seven KPIs that every ski resort hotel should focus on. Let's dive in and discover how you can optimize your business for maximum success.

• Occupancy rate - How full are your hotel rooms? This KPI helps you understand your hotel's performance and measure the effectiveness of your marketing campaigns.
• Average daily rate - How much money are you earning per room on average? Knowing your ADR is crucial for setting room prices and measuring profitability.
• Revenue per available room - This KPI measures how much revenue you're generating for each available room. By optimizing this metric, you can increase overall profitability.

But that's not all. To truly understand your hotel's performance, you also need to track customer satisfaction score, ski equipment sales, ski lesson revenue, and repeat customer rate. By keeping tabs on these KPIs, you can improve your guest experience, increase revenue, and boost your hotel's reputation.

So, are you ready to take your ski resort hotel to the next level? Let's explore these KPIs in detail and see how they can benefit your business.

Occupancy Rate

One of the most important KPIs for ski resort hotels is the occupancy rate. This KPI measures the percentage of rooms that are occupied during a specific period of time.

Definition

The occupancy rate is the percentage of rooms that are occupied during a specific period of time. It is calculated by dividing the number of occupied rooms by the total number of available rooms.

Use Case

Tracking the occupancy rate is important for ski resort hotels because it helps to determine the demand for rooms. A high occupancy rate indicates that the hotel is popular and in demand, while a low occupancy rate may indicate that the hotel needs to make changes to attract more guests.

How to Calculate KPI

The formula for calculating the occupancy rate is:

Calculation Example

For example, if a ski resort hotel has 100 rooms and 80 of them are occupied on a specific day, the occupancy rate would be:

KPI Advantages

• Provides insight into the demand for hotel rooms
• Helps hotel managers to make informed decisions about pricing and marketing strategies
• Allows hotels to optimize room inventory and occupancy levels

KPI Disadvantages

• Does not take into account the length of stay or the revenue generated by each occupied room
• May be impacted by external factors such as weather, competition, and seasonality
• Does not provide insight into guest satisfaction or loyalty

KPI Industry Benchmarks

According to industry benchmarks, the average occupancy rate for ski resort hotels is around 70%. However, this can vary depending on the size and location of the hotel, as well as the time of year.

What are the Top Seven Ski Resort Hotel KPI Metrics: How to Track and Calculate

Average Daily Rate

Definition: The Average Daily Rate (ADR) is a metric that represents the average rate per room or unit per day and is calculated by dividing the total room revenue by the total number of occupied rooms

Use Case: ADR is an essential KPI for ski resort hotels to understand how effectively they are using their rooms. It helps owners and managers evaluate the property's pricing strategy and reveals pricing opportunities or potential pricing challenges. ADR also gives insight into market demand and price sensitivity to adjust pricing in line with local demand trends.

How to Calculate KPI: ADR = Total Room Revenue / Total Number of Occupied Rooms

Calculation Example: If Ski Resort Hotel X has generated $50,000 in revenue by renting out a total of 500 rooms in the month of January, then the ADR would be calculated as follows:

KPI Advantages:

• ADR can help owners identify their most popular room categories and adjust pricing accordingly by charging a premium for high demand rooms.
• Knowing the ADR helps hotels develop marketing and sales strategies to improve their occupancy rates while keeping prices competitive.
• By tracking ADR, ski resort hotel owners can determine an appropriate rate for their seasonal room packages and promotions by factoring in their revenue targets and seasonality.

KPI Disadvantages:

• ADR only indicates the average revenue earned per room and does not take into consideration profitability, which should be considered in tandem with other indicators.
• ADR does not reflect the duration of guest stays in each room, which is important to accounting and revenue management.
• The performance of ski resort hotels differs significantly depending on their size, location, and target customers, so comparing ADR metrics across hotels can sometimes be difficult.

KPI Industry Benchmarks: According to the latest study by Rocky Mountain Lodging, The average ADR was $224.08 in 2019, and the average ADR for ski resorts properties was about 10% above the industry average.

Revenue per Available Room

Definition

Revenue per available room (RevPAR) is a performance metric used in the hospitality industry to measure the amount of revenue generated per available room in a hotel or resort. It takes into account both the occupancy rate and the average room rate to determine the total revenue per room.

Use Case

RevPAR is a key indicator of a hotel's financial performance, as it reflects the hotel's ability to generate revenue from its available resources. It allows hotel owners and managers to evaluate the effectiveness of their pricing strategies and marketing campaigns, as well as to benchmark their performance against industry standards.

How to Calculate KPI

To calculate RevPAR, you need to divide the total room revenue for a given period by the total number of available rooms for that same period. The formula for calculating RevPAR is:

Calculation Example

Let's say a hotel has 100 rooms available for a given night, and its total room revenue for that night is $10,000. The RevPAR for that night would be:

KPI Advantages

• Easy to calculate and understand
• Helps to identify trends in revenue performance over time
• Allows for comparisons against industry benchmarks and competitors

KPI Disadvantages

• Does not take into account other revenue sources, such as food and beverage or spa services
• Does not factor in the cost of operating the hotel
• Can be influenced by external factors, such as changes in market demand or seasonality

KPI Industry Benchmarks

The RevPAR benchmark varies depending on the location, hotel segment, and time of year. According to STR, a global hospitality data and analytics company, the average RevPAR in the U.S. hotel industry in 2020 was $54.54.

Top Seven Ski Resort Hotel KPI Metrics: How to Track and Calculate

Customer satisfaction score

Definition: The customer satisfaction score (CSS) is a KPI metric that measures how satisfied guests are with their overall experience at a ski resort hotel. It helps hotel management assess the effectiveness of their services, facilities, and customer service, and identify areas for improvement.

Use Case: The CSS is a crucial KPI for ski resort hotels, as it directly impacts guest loyalty and potential referrals. By tracking customer satisfaction trends over time, hotels can evaluate the success of their efforts to enhance guest experience and identify any areas for improvement.

How To Calculate KPI:

Calculation Example: If a ski resort hotel receives 100 survey responses and 75 guests report being satisfied, the CSS would be calculated as follows:

KPI Advantages:

• Provides valuable insight into guest satisfaction and experience
• Helps identify areas for improvement
• Contributes to guest loyalty and repeat business

KPI Disadvantages:

• May not capture all aspects of guest experience and satisfaction
• Responses may not be representative of the entire guest population

KPI Industry Benchmarks: The average CSS for ski resort hotels is approximately 80%

Top Seven Ski Resort Hotel KPI Metrics: How to Track and Calculate

Ski Equipment Sales

Definition: Ski equipment sales KPI measures hotel ski rental and equipment sales performance. Ski equipment sales KPI is a critical metric as it gives you insight into how well your hotel is generating income through ski equipment rentals and sales. It measures the total dollar value of ski gear sold by a hotel or ski resort.

Use Case: Hotel operators or marketers can use this KPI to strategies and measure the impact of promotions, mountain conditions and ski rental offers. By tracking ski equipment sales in real-time, ski resorts can optimize inventory and pricing. This way, managers can adjust orders to meet demand, manage limited space for gear storage, and ensure that ski rental gear is at the right level of availability.

How to Calculate KPI: The ski equipment sales KPI is calculated as follows:

Calculation Example: In a particular ski season, a hotel reported $100,000 of ski equipment sales and hosted 10,000 guests. Therefore, the ski equipment sales KPI would be:

KPI Advantages:

• Helps ski resorts make data-driven decisions regarding ski rental and retail operations.
• Enables hotels or resorts to understand what products are popular among guests and make corresponding inventory adjustments.

KPI Disadvantages:

• Ski equipment sales KPI takes into account the total number of hotel guests. Therefore, it doesn't account for guests who bring their ski equipment or get it from a rival rental shop.
• The KPI doesn't reveal whether the guests are satisfied with the hotel experience.

KPI Industry Benchmarks: According to several studies, the average ski hotel can sell approximately $20-$35 worth of equipment rentals per day per person.

Top Seven Ski Resort Hotel KPI Metrics: How to Track and Calculate

Ski Lesson Revenue

Definition: Ski lesson revenue is the amount of money earned from ski lessons provided by the ski resort hotel to its guests.

Use Case: Ski lesson revenue KPI allows the ski resort hotel to understand the financial contribution of ski lessons to its overall business performance. It also helps in identifying the most popular and profitable ski lessons and instructors.

How to Calculate KPI:

Calculation Example:

KPI Advantages:

• Helps in evaluating the financial success of ski lessons and instructors
• Enables decision-makers to identify the most profitable ski lessons and adjust pricing accordingly
• Allows businesses to forecast future revenue and plan accordingly

KPI Disadvantages:

• Ski lesson revenue may not provide a full financial picture of ski lessons as it doesn't account for associated costs such as equipment rental, labor, and marketing costs
• Revenue from ski lessons may not be significant enough to impact the overall financial performance of the ski resort hotel
• Seasonal and weather factors may have a significant impact on ski lesson revenue

KPI Industry Benchmarks:
According to a survey of ski resort hotels conducted by the Mountain Travel Research Program (MTRiP), on average, ski lesson revenue accounts for approximately 10% of a ski resort hotel's total revenue.

Repeat Customer Rate

Definition

Repeat customer rate is a KPI metric that measures the percentage of customers who have made a repeat purchase at a ski resort hotel. It is the ratio of the number of repeat customers to the total number of customers in a given period.

Use Case

Repeat customer rate is an essential KPI metric for ski resort hotels to track because it indicates customer loyalty. High repeat customer rates suggest that a hotel has a strong customer base that is likely to generate more revenue in the long term.

How To Calculate KPI

Calculation Example

Suppose a ski resort hotel had 500 customers in a given period, out of which 150 were repeat customers. The repeat customer rate would be calculated as follows:

Therefore, the repeat customer rate for the ski resort hotel is 30%.

KPI Advantages

• Repeat customer rate is a reliable indicator of customer loyalty.
• It is easy to calculate and monitor over time.
• High repeat customer rates can lead to increased revenue.

KPI Disadvantages

• It may not be sufficient to measure customer satisfaction or the overall success of a hotel.
• Repeat customers may not always be profitable or result in increased revenue.

KPI Industry Benchmarks

• According to industry benchmarks, a good repeat customer rate for ski resort hotels should be above 20%.
• Top performing ski resort hotels have repeat customer rates of over 40%.
• However, it is important to note that these benchmarks may vary depending on location, target market, and other factors.

In conclusion, as a hospitality industry expert with years of experience in managing successful ski resort hotels, I highly recommend focusing on the seven key performance indicators (KPIs) mentioned above. By tracking metrics such as occupancy rate, average daily rate, revenue per available room, customer satisfaction score, ski equipment sales, ski lesson revenue, and repeat customer rate, you can gain valuable insights into your hotel's performance and make informed decisions to improve profitability and guest satisfaction.

Occupancy rate helps you understand how full your hotel rooms are and measure the effectiveness of your marketing campaigns. Your average daily rate is crucial for setting room prices and measuring profitability, while tracking revenue per available room can help you optimize your earnings for each available room.

However, to truly succeed, you need to focus on more than just financial metrics. Tracking customer satisfaction score, ski equipment sales, ski lesson revenue, and repeat customer rate can help you improve guest experience, increase revenue, and build a strong reputation for your ski resort hotel.

Overall, investing time and effort in tracking and analyzing these KPIs can help you make data-driven decisions and optimize your business for maximum success. As you strive to take your ski resort hotel to the next level, keep in mind the importance of these metrics and use them to guide your strategies and tactics.