© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - How To Measure The ROI For Hotel Management Software
Posted 20th January 2020

How To Measure The ROI For Hotel Management Software

Hotel management software provides a lengthy list of services to help you calculate your hotel's return on investment. To measure and improve your ROI, you'll also want to take a look at a few major aspects of your business.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

How To Measure The ROI For Hotel Management Software
hotel management

How To Measure The ROI For Hotel Management Software

As a hotel owner, you work diligently to run your property efficiently while meeting all your guests’ needs. But like all business owners, your next priority is how much money you’re making. Hotel management software provides a lengthy list of services to help you calculate your hotel’s return on investment. To measure and improve your ROI, you’ll also want to take a look at a few major aspects of your business. 

What Should You Look For?

Hotel management software is a resource that can help you reduce costs and increase efficiency. To come up with your ROI, you need to determine the total cost of investment, as well as its net gain. You should consider the following when doing this:

  • Cost of staff
  • Sales numbers
  • Losses and human errors
  • Long-term revenue
  • Customer support cost

Management software impacts all these areas in one way or another. When implemented, it drives profitability and productivity. To gain the full benefits of your software, make sure you’re using it properly. You can create additional revenue for your hotel and influence how it operates as a whole. When your software is performing correctly and to its fullest potential, your hotel will be, too.

After considering how to measure ROI in conjunction with the use of your software, you’ll want to take a look at the primary aspects of your business. These are the parts that bring in the most ROI for your hotel. They depend on each other for success — if one is lacking, it will be apparent on all fronts.

Renting Rooms

Providing lodging is the main source of revenue for most hotels, so you want to make sure your rooms are updated, clean and provide the amenities guests come to expect. An ideal way to sell more rooms is to offer them in blocks for special events, like weddings and business trips. Doing so allows guests to easily reserve the rooms they need. At the same time, you can rent a large number of rooms in one go.

Bar and Food Service

Serving food and drinks is one of the best ways for hoteliers to make money. In 2016, the average profit margin for food and beverages in hotels was nearly 30%. By offering a delicious breakfast buffet or room service, you can give guests the option of staying onsite for their meals. The same goes for a well-maintained and enjoyable bar — if guests don’t have to go elsewhere to have a drink, they likely won’t.

Private Events

The ability to host conferences, parties and meetings allows for a prominent revenue stream. Your hotel most likely has empty conference and ballrooms that are perfect for these events. You can rent out space, as well as chairs, tables and entertainment systems. Another good move is to use your bar and food services for these events. While this can result in a positive ROI, you still need to be a little strategic

Spas, Pools and Fitness Areas

Many hotels offer services like massages and facials, as well as access to gyms and pool and hot tub areas. These all provide ways for guests to relax and entertain themselves on hotel property. Some hotels require guests to pay an extra fee if they want to use any of these amenities. Remember that perks like pools will only bring you a higher ROI if your hotel is in a location where it makes sense to have one. Those in cold climates won’t see them used as much.

Extras

The miscellaneous conveniences, like fast Wi-Fi, mobile check-in and outlets that all work can make your hotel even more attractive. If you have a reputation for providing thoughtful amenities like spare phone chargers, guests will rest assured you’ll take care of all their needs. Small gestures like this won’t be a massive expense to you, but can mean the world to your customers. 

Take a Look at Every Aspect

When determining what your ROI is and how you can improve it, you’ll want to look at every area your hotel touches. Hotel management software is a great resource to have, as long as you consider all the various factors that come in to play. 

Categories: Strategy


You Might Also Like
Read Full PostRead - Eye Icon
IP Awards FAQs
Strategy
26/02/2015IP Awards FAQs

IP Awards 2015 FAQs

Read Full PostRead - Eye Icon
ARQIS advises Oerlikon on the acquisition of AC-Automation
Legal
25/04/2018ARQIS advises Oerlikon on the acquisition of AC-Automation

ARQIS has advised Oerlikon on the acquisition of German-based AC-Automation GmbH & Co. KG.

Read Full PostRead - Eye Icon
Sensoring Future Growth
Finance
05/11/2015Sensoring Future Growth

Global image sensors market to grow at 10.30% CAGR to 2020 with consumer electronics having major market share

Read Full PostRead - Eye Icon
King & Wood Mallesons Advise Colgate-Palmolive During Sale to Henkel
Legal
10/06/2015King & Wood Mallesons Advise Colgate-Palmolive During Sale to Henkel

King & Wood Mallesons Advise Colgate-Palmolive During Sale to Henkel

Read Full PostRead - Eye Icon
5 Tools That Will Help You Grow Your Business
News
05/10/20215 Tools That Will Help You Grow Your Business

You might have a lot of ideas that could make a great business venture if turned into reality. However, without the knowledge of the necessary business tools available in the market, it would be rather hard for you to turn your dream of starting a business int

Read Full PostRead - Eye Icon
Fashion Startup: How to Market Your Brand and Acquire Customers
News
19/02/2024Fashion Startup: How to Market Your Brand and Acquire Customers

Starting a fashion brand in today’s competitive market requires more than just a keen eye for style. With countless emerging designers and established brands vying for attention, effective marketing strategies are essential for standing out and acquiring

Read Full PostRead - Eye Icon
eBay – Just the Ticket
Strategy
31/05/2016eBay – Just the Ticket

Online marketplace giant eBay has revealed it plans to buy the Spanish online ticketing platform Ticketbis, in a move that will see eBay expand its StubHub business to Europe, Latin America and the Asia-Pacific region.

Read Full PostRead - Eye Icon
Danaher’s Acquisition of Pall Corporation
Finance
03/06/2015Danaher’s Acquisition of Pall Corporation

Danaher's Acquisition of Pall Corporation

Read Full PostRead - Eye Icon
Schwartz Advisors Advises Olympus Imported Auto Parts in its Acquisition by Genuine Parts Company
M&A
30/03/2016Schwartz Advisors Advises Olympus Imported Auto Parts in its Acquisition by Genuine Parts Company

Schwartz Advisors, an M&A advisory and strategic planning firm for the automotive aftermarket, announced that the firm has acted as exclusive sell-side advisor to Olympus Imported Auto Parts.



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow