Lodging turnover

Concept and meaning

The lodging turnover indicates How much A hotel generates revenue purely by renting out rooms.
Calculating the lodging turnover is extremely simple.

To determine the daily lodging turnover, multiply the average room price (ADR) by the number of rooms sold. For the monthly result, the results of the individual days are added up accordingly. For most hotel software providers, logistics turnover is anyway a parameter that is reported accordingly as a KPI.

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How can you increase lodging turnover?

There are various ways to increase lodging turnover. One option is Revenue Management to operate in the form of dynamic room rates. The prices for the rooms are adjusted based on certain parameters, such as when there is high occupancy or other events that have an effect on the willingness to pay. (Fairs, weekends, vacations, etc.)

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These simple measures can often increase sales by up to 20%. With the right software, however, revenue management is by no means time-consuming. In many cases, the adjustment and transmission of prices is carried out fully automatically and in real time via an algorithm.

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Another way to increase lodging revenue is to offer new services or improve existing services to attract more guests. For example, the hotel can expand or improve its restaurant offerings or create new wellness offerings. Creating attractive package offers can also increase the booking rate and thus increase lodging turnover.

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Conclusion

Overall, it can be said that lodging turnover is a very important indicator for hoteliers to determine the profitability of their business. It also shows how much the hotel's total turnover depends on lodging turnover. By comparing the individual months/years, it is also possible to determine whether and how much influence implemented measures (example: introduction of revenue management software) have on lodging turnover.

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