SAN ANTONIO, Texas and ALPHARETTA, Georgia—Agilysys, Inc. launched the findings of its 2024 World Hospitality Influence Examine: Unlocking Income Past the Room at The Hospitality Present 2024. This survey of 489 hospitality executives and know-how decision-makers throughout North America, Europe, and APAC unveils insights into the trade’s readiness to embrace income per obtainable visitor (RevPAG) methods whereas highlighting challenges holding again adoption.
The potential of including RevPAG initiatives to conventional income per obtainable room (RevPAR) measures is mirrored within the present development of vacationers in search of customized experiences, with luxurious properties already producing as much as 40 p.c of income from non-room sources. Nonetheless, whereas 82 p.c of hospitality executives are eager about proactively figuring out and increasing income alternatives on the per-guest degree, 56 p.c consider they’re unprepared technologically and operationally to take action.
“Properties have a compelling alternative to lean into rising traveler needs to obtain customized affords and revel in distinctive experiences curated only for them. Nonetheless, know-how outfitted to establish and serve up these alternatives—whether or not upfront or real-time throughout a visitor’s keep—will not be pervasive,” stated Terrie O’Hanlon, senior vp, Agilysys.
“Whereas there’s overwhelming curiosity in capitalizing on RevPAG’s potential to drive each income progress and visitor loyalty, our analysis reveals a regarding readiness hole,” O’Hanlon continued. “Properties that fail to bridge this hole not solely threat leaving substantial income on the desk in a promising and increasing market but additionally improve the likelihood they are going to fall behind new properties and others investing in know-how, working processes, and cultural dynamics geared towards understanding income potential on the per-guest degree.”
Findings from the report embrace:
- Essential Aspiration-Actuality Hole: Whereas 82 p.c of hospitality executives acknowledge the potential of optimizing RevPAG, 56 p.c really feel unprepared to take action.
- Know-how Transformation Issues: To allow optimizing RevPAG, 72 p.c of executives are keen to boost the present know-how infrastructure, with two-thirds keen to contemplate switching PMS programs, suppliers, or each.
- Know-how Evaluation Hole: Solely 12 p.c of properties evaluation their system capabilities towards market improvements a number of instances yearly, whereas 38 p.c wait 4 or extra years between doing so, contributing to blind spots regarding leveraging new know-how to optimize income on the per-guest degree.
- Twin Function of Know-how: Sixty-eight p.c of executives consider property know-how should steadiness day-to-day operations with future innovation wants.
- Precedence Inertia: Most properties have conventional priorities on the head of their day-to-day working mandates versus having made a shift to placing the power to establish and optimize per-guest income first. Whereas “enhancing visitor experiences” is the main precedence at 68 p.c, doing so will not be particularly revenue-per-guest targeted. Buying new friends (67 p.c) and rising rebookings (63 p.c) spherical out the highest priorities. Whereas it’s true that these benefits may result from optimizing per-guest income, cultures haven’t developed to make RevPAG a property-wide focus despite the fact that there’s excessive settlement (82 p.c) concerning the worth of doing so.
The 2024 World Hospitality Influence Examine highlights the benefits of increasing room-revenue-focused mindsets formed by RevPAR and common each day charge (ADR) metrics to broader, guest-centric income sensibilities. Including RevPAG targets and capabilities to conventional efficiency expectations equips properties to seize the complete spectrum of visitor spending and the added income upside derived by tailoring choices to particular person visitor needs.
“The trail to ‘Excessive Return Hospitality’—a state wherein monetary and emotional returns are optimized by completely aligning particular person visitor needs with property choices and workers capabilities—turns into simpler when hospitality executives broaden how they measure and create worth,” stated O’Hanlon. “RevPAG is not only one other metric—it’s a reimagining of how properties and types relate to every visitor and monetize the moments that matter most. Properties that undertake this transition will set new requirements for delivering private, worthwhile visitor experiences and for elevating working benefits.”
