SAN ANTONIO, Texas and ALPHARETTA, Georgia—Agilysys, Inc. launched the findings of its 2024 World Hospitality Affect Research: Unlocking Income Past the Room at The Hospitality Present 2024. This survey of 489 hospitality executives and expertise 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 looking for customized experiences, with luxurious properties already producing as much as 40 % of income from non-room sources. Nonetheless, whereas 82 % of hospitality executives are taken with proactively figuring out and increasing income alternatives on the per-guest degree, 56 % consider they’re unprepared technologically and operationally to take action.
“Properties have a compelling alternative to lean into rising traveler needs to obtain customized gives and revel in distinctive experiences curated only for them. Nonetheless, expertise outfitted to establish and serve up these alternatives—whether or not upfront or real-time throughout a visitor’s keep—isn’t pervasive,” stated Terrie O’Hanlon, senior vice chairman, 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’ll fall behind new properties and others investing in expertise, working processes, and cultural dynamics geared towards understanding income potential on the per-guest degree.”
Findings from the report embrace:
- Vital Aspiration-Actuality Hole: Whereas 82 % of hospitality executives acknowledge the potential of optimizing RevPAG, 56 % really feel unprepared to take action.
- Expertise Transformation Issues: To allow optimizing RevPAG, 72 % of executives are keen to reinforce the present expertise infrastructure, with two-thirds keen to think about switching PMS methods, suppliers, or each.
- Expertise Assessment Hole: Solely 12 % of properties assessment their system capabilities in opposition to market improvements a number of occasions yearly, whereas 38 % wait 4 or extra years between doing so, contributing to blind spots regarding leveraging new expertise to optimize income on the per-guest degree.
- Twin Function of Expertise: Sixty-eight % of executives consider property expertise 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 flexibility to establish and optimize per-guest income first. Whereas “enhancing visitor experiences” is the main precedence at 68 %, doing so isn’t particularly revenue-per-guest centered. Buying new visitors (67 %) and growing rebookings (63 %) 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 regardless that there’s excessive settlement (82 %) concerning the worth of doing so.
The 2024 World Hospitality Affect Research highlights some great 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 objectives 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 through which 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.”
