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STAAH Blog

  • Home
  • MANAGEMENT
    • Why Every Hotel Needs a Channel Manager…

      Program Konsorsium Hotel: Bagaimana, Mengapa & Berapa…

      โปรแกรม Hotel Consortia: อย่างไร ทําไม และค่าใช้จ่ายเท่าไหร่?

      ตัวจัดการช่องทาง Channel Manager คืออะไร และทำไมผู้ให้บริการที่พักจึงจำเป็นต้องมี?

      The Top Traits of Exceptional Hospitality Professionals

  • Marketing
    • Smart Hotel Distribution: What Every Hotelier Needs…

      The Ultimate Guide to Turning Negative Reviews…

      6 Social Media Trends Hoteliers Must Leverage…

      ไอเดียโพสต์โซเชียลมีเดียที่กําลังมาแรงสําหรับโรงแรมในปี 2025

      Xu Hướng Nội Dung Mạng Xã Hội…

  • Tips & Trends
    • Smart Hotel Distribution: What Every Hotelier Needs…

      Maximizing Hotel Revenue: Advanced Channel Manager Strategies…

      The OTA Balancing Act: How a Channel…

      Tapping into Wellness Tourism: A Hotelier’s Guide

      Overcoming common challenges in channel management for…

  • News
    • Cloudbeds and STAAH partner to enhance channel…

      STAAH Achieves Prestigious Seamless Product Badge from…

      STAAH Product Updates You Can’t Miss –…

      Thoughtful Thursday – Reporting for Properties: Converting…

      Thoughtful Thursday – Matrix – Revenue Control…

  • Success Stories
    • The Komu Boosts Direct Revenue by 25%…

      Online Revenue Jumps 50% for Mangkuluhur Residences…

      23% more online bookings for Vivatel Kuala…

      STAAH boosts Indonesian resort’s direct bookings by…

      Nova Express Pattaya expands online visibility with…

  • Resources
    • All BLAAH BLAAH @STAAH Connectivity News e-Books Events Podcast Quiz Testimonials Webinars

      Connect with Expedia – Expand Your Reach…

      Alexa+ could earn “top-of-the-funnel” spot in travel…

      STAAH & Hotelbeds: A Powerful Partnership Driving…

      STAAH’s new eBook to guide hoteliers through…

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      EMPOWERING CHANNEL PARTNERS: THE POWER OF CONTENT…

      STAAH’s new eBook to guide hoteliers through…

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      STAAH Weekly Hospitality Quiz: 20 December

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Which is more important for hotels in 2021? Occupancy or ARR?

12 May 2021
receptionist businessman hotel

A year since the first of many lock-downs, with masks, sanitizers and social distancing our new world reality, the hotel industry still finds itself in limbo. 


Travel bans, guest restrictions, Covid-19 regulations, curfews, lock-downs… the “new normal” seems anything but normal!

Improvise, Adapt and Overcome is the mantra of the season, hoteliers have overcome hurdle after hurdle to keep up with this ever-changing situation. Internationally, interest in travel is at an all-time low, with patrons hesitant to risk a vacation. In spite of the new social distancing norms limiting guest numbers and rentable rooms, getting bookings even in the peak holiday months has proven another Herculean task for hotels to undertake.

arr occupancy hotel

Before the zoom call and Dalgona coffee era last year, 2020 kicked off nicely with an ARR of INR 6400. This nearly depreciated to half the amount when Covid-19 struck, slowly climbing back up to INR 4858 towards the winter holidays.
Last September, when the pandemic had eased up enough to permit Mission Unlock, we saw a 16% increase in hotel occupancy, as compared to the statistics from April, in the thick of those chaotic first few months. What followed was a steady increase right up to 37% in November, but nothing close when compared to the previous years’ overall occupancy rates around peak season.

happy family three reserving hotel internet using laptop

The new year has brought a lot of new confusion, and worrisome rises in case outbreaks, pan India. Hoteliers need to stay up to date with each development, in order to strategize, market and profitably stay in business through another year of the ” new normal “.
Distinguishing the Average Room Rate from the Occupancy of an establishment is a key consideration to successfully navigate the industry landscape through 2021. To understand this better, let’s dive deeper into what these two metrics represent for a hotel’s business.

Taking into consideration the recent industry climate, the ARR is your most critical metric.

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It takes into account more reliable data parameters than Occupancy. By measuring the average price paid by a guest per room or suite, you are overall enabled to measure and compare the room revenue generated over a specific time frame to the amount of room revenue paid by your guests and the total number of rooms occupied at your hotel property.

Tracking and analyzing your ARR through the peak holiday seasons and the off-season months will help in understanding and creating targeted promotional campaigns to steer traffic in and increase revenue returns overall. Most importantly, it gives you invaluable insight into the local competition you are up against, forming a common yardstick to measure the season’s success. Since the onset of the pandemic, the hotel industry has definitely taken a blow.

  • It is essential to invest time and energy infeasible, new techniques for marketing and profit generation to compensate for the pandemic losses.
  • Midweek occupancy is a great Segway into this aspect of managing a hotel business today.
  • Saturday night may forever remain the epitome of high occupancy, but it is possible to significantly boost weekday bookings with some targeted effort.

This article has been written by guest writer Vishal Ajwani.

About the Guest writer

Vishal AjwaniVishal Ajwani is the founder & director of revmerito , a strategic consulting firm which specialises in Online Revenue Management, E Distribution, GDS/IDS and Technology consultation.

Which is more important for hotels in 2021? Occupancy or ARR? was last modified: June 21st, 2022 by Nashi Dasgupta

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