If you’re in the hotel business, you know that numbers matter. But not just any numbers—KPIs (Key Performance Indicators). Tracking the right KPIs is how you know if your hotel is doing well or if you need to make changes. So, let’s look at the 7 hotel KPIs you should track every month in 2025. Ready? Let’s dive in!
1. Occupancy Rate: The Most Important Number
Let’s start with the big one: occupancy rate. It’s the most basic and important KPI for any hotel. If your occupancy rate is low, you’ve got a problem. If it’s high, you’re doing well.
What is it?
It’s the percentage of rooms that are sold during a specific time period.
Why it Matters:
Tracking your occupancy rate tells you if your hotel is in demand. Are you filling rooms or do you have empty rooms sitting around? If occupancy drops suddenly, it’s a sign that something is wrong—whether it’s your marketing or your guest experience.
How to Track It:
2. Average Daily Rate (ADR): The Price You’re Charging
Next is ADR, or Average Daily Rate. This is all about how much you’re charging for your rooms. The higher your ADR, the more money you're making per room.
What is it?
ADR is the average price guests pay for a room each day.
Why it Matters:
Your ADR shows if you’re charging the right amount for your rooms. High occupancy is great, but if your ADR is low, you’re not making as much as you could. You could be filling up your rooms at bargain prices when you should be charging more.
How to Track It:
3. Revenue Per Available Room (RevPAR): The Combined Power
Here’s where it gets interesting—RevPAR combines both occupancy rate and ADR. It gives you a better picture of how well you’re doing overall.
What is it?
RevPAR tells you how much money you're making per room, including all rooms (even the unsold ones).
Why it Matters:
If RevPAR is high, it means you're filling rooms at good prices. If it's low, you either need to charge more for your rooms or increase occupancy.
How to Track It:
4. Gross Operating Profit Per Available Room (GOPPAR): Your Hotel's Profitability
Let’s take things up a notch with GOPPAR. This one looks at how well your hotel is actually making money, not just filling rooms or setting prices.
What is it?
GOPPAR measures your hotel’s profit from all services (like food, drinks, and other services) after covering all costs. It’s a more complete view of your hotel’s finances.
Why it Matters:
If you're only tracking RevPAR, you might be missing something. You could have a high RevPAR, but also very high operating costs. GOPPAR helps you see if you’re actually making money after paying all your bills.
How to Track It:
5. Lead Time: How Early Are Guests Booking?
Next, let's talk about lead time. It’s all about how early guests book their rooms. This is important because it tells you how well you're planning and marketing.
What is it?
Lead time is the number of days between when a booking is made and when the guest actually stays at your hotel.
Why it Matters:
Short lead times mean guests are booking last minute, which is risky for your hotel. If you know your lead time, you can plan better—adjust your pricing, market more effectively, and fill rooms early.
How to Track It:
6. Booking Source Mix: Where Are Your Guests Coming From?
Let’s talk about booking source mix—basically, where your guests are making reservations. Are they booking directly from your website or through OTAs (like Booking.com or Expedia)?
What is it?
This KPI tracks the channels where your guests are booking, whether it’s your own website, OTAs, or other sources like travel agents.
Why it Matters:
It’s important to know where your bookings are coming from. Are you relying too much on OTAs, which can cost you in commission fees? Or are you driving more direct bookings, which bring in more profit for you?
When you track your booking source mix, you can focus your efforts on the best-performing channels. PMS integrations with your Channel Manager can help you keep track of all these channels in one place, making it easy to optimize.
How to Track It:
Break down your bookings by channel (e.g., OTAs, direct website bookings, travel agents) and see which channels bring the most guests.
7. Customer Acquisition Cost (CAC): How Much Are You Spending on Marketing?
Lastly, let’s look at customer acquisition cost, or CAC. This KPI tells you how much you spend on marketing to get a new guest.
What is it?
CAC is the cost of all your marketing and advertising efforts divided by the number of new guests you acquired.
Why it Matters:
If it costs you too much to get a guest in the door, you’re in trouble. Tracking CAC helps you understand if your marketing strategies are working or if you’re spending too much.
By having solid PMS integrations in place, you can keep track of all your marketing data and ensure you're not overspending on acquiring new guests.
How to Track It:
AxisRooms: The Perfect Tool for Tracking and Optimizing Your KPI
One of the standout features of AxisRooms is its Revenue Management System (RMS). With this feature, you can automatically track RevPAR, ADR, and Occupancy Rate in real-time. It integrates seamlessly with your booking engine and OTAs, giving you a complete picture of your revenue performance across multiple channels.
What’s even better? AxisRooms' RMS adjusts your pricing based on demand, ensuring you get the best possible rate for your rooms at any given moment. Whether you’re dealing with peak season or a quiet period, this tool ensures that your ADR and RevPAR stay as healthy as possible.
Why does this matter? Well, with AxisRooms, you don’t just track KPIs; you actively optimize them. And in today’s competitive hotel industry, that’s what makes the difference between surviving and thriving.
If you’re serious about taking your KPI tracking to the next level, AxisRooms can be the partner you need to make smarter, data-driven decisions. No more guessing. Just real-time, actionable insights that help you run a profitable hotel.
So, next time you’re diving into your KPIs, remember that tools like AxisRooms make the entire process smoother and more impactful. Happy optimizing!
Wrapping It Up: Keep an Eye on These KPIs and Watch Your Hotel Soar
So, there you have it. These 7 hotel KPIs are the backbone of any hotel’s success in 2025. From occupancy rates to customer acquisition costs, each one helps you measure and fine-tune your operations. When you track these KPIs every month, you’ll not only understand what’s working but also know exactly where to improve.
Don’t let these numbers intimidate you. Embrace them, track them, and use them to steer your hotel in the right direction. After all, in the ever-evolving world of hospitality, the more you know, the better you can adapt.
So, next time you find yourself knee-deep in spreadsheets, remember: those numbers are your ticket to success! Happy tracking, and here’s to smarter, more profitable hotels!