Hotel Market Analysis – Reliable hotel market data as basis of sound decisions
Based on Fairmas Benchmarking
The Hotel Market Analysis serves to assess opportunities and risks. A well-considered hotel market survey can reduce the risk of making the wrong decisions, uncover possible market gaps and reveal untapped growth potential.
The validity of a hotel market analysis is closely linked to the quality of the data used. Particular attention should be paid to the data source and the method used to collect them. You can only draw the right conclusions if the data quality is assured.
Data Source and Data Processing are crucial quality factors
What to watch out for:
The choice is yours: Basic or Premium – as you require
Receive a general overview of a federal territory, a region or a destination of your choice. We will provide you with the hotel performance analysis for an individually defined period of time, as well as historical data from the last 5 years.
The Basic Analysis includes the average occupancy rate, the average room price per day and the average revenue per sold room. We provide you with the absolute value, the variance compared to the previous period and the percentage growth value (variance calculation).
All key figures are compiled per month, per quarter, per weekday as well as by weekday and weekend, in clearly arranged tables.
The Premium Analysis is the more extensive option with the addition of valuable calculations according to hotel categories and event performance.
The Event Analysis includes an overview of the events including the number of event days per destination and the compound annual growth rate (CAGR).
In addition, you will also receive a report on the best and low level performance – so that you get to know the entire range of the key performance indicators, an important supplementary information to the average means.
The separate consideration of Occupancy, ADR and RevPar broken down to individual weekdays or differentiated according to hotel category, size and type (operating mode, facilities etc.) shows possible differences and future potentials
Fairmas Hotel Market Analysis: The Right Solution for Different Market Participants
Meaningful information about the hotel market – the size, the competitive environment and its development are important for many stakeholders. It does not matter which interest group you belong to – it is always better to secure important management decisions based on a credible location and market analysis.
Cities and Municipalities
As an example, the public sector needs valid information about the hotel market for infrastructure decisions. For a city’s marketing activities, the knowledge of the existing hotel offer and hotel key figures point the way for its strategic orientation. Just think of the possibility that the targeted promotion of leisure tourism could compensate for extreme exhibition-related occupancy fluctuations. Perhaps with this market information, cities are able to support the congress and exhibitions industry with targeted structural decisions. This is definitely worthwhile for the cities and municipalities given the fact that the congress industry is an important economic factor with the amount of tourism it brings. To further illustrate: every overnight visitor to Berlin spends an average of EUR 205.80 per day, based on the current figures from VisitBerlin.
Institutional investors and investor groups are becoming increasingly involved in the growing tourism sector and hotel industry. Compared to other sectors, tourism has been growing steadily for nine years now and yields are comparatively high. Nevertheless, competitive pressure is also intensifying in the hotel sector. In order to keep the investment risk as low as possible, but also to discover market opportunities, information on current hotel financial indicators such as the average occupancy rate, average room rate, revenue and income, as well as their historical development, are necessary.
Hotel operators and hotel consulting companies can use time-related benchmarking data to compare their own hotel key figures with those of the overall hotel market, within a specific hotel category or their own hotel competitor set in order to identify their own marginal growth. It does not matter whether the hotel owner is planning a new building, a major conversion or renovation, or whether the existing marketing concept should be reviewed. Securing a strategy and / or an investment decision by means of qualified hotel market data makes sense in any case and applies to the long-term preservation and continuity of one’s own hotel success.