EI/2020/05 - Hotel Performance Metrics 2021-2023

Descriptions

Fáilte Ireland has measured the performance of hotels since the 1960’s, focussing on bed and room night demand and the market origin of hotel guests. Over the last twenty years, the Irish Hotel Industry has changed fundamentally from one dominated by family/individually run hotels to a more consolidated industry with many domestic and international groups operating multiple properties. This change along with technological advances has enabled hotel managers to access metrics such as Average Daily Rate and Revenue per Average Room as tools to support yield management and benchmarking between properties. Fáilte Ireland is seeking a strategic partnership to leverage these changes to better understand hotel sector performance and to identify where and how the organisation can provide optimum support to the sector. This is for an initial one year period, with an option to renew for a further 12 months. For example, we would like to be in a position to understand just the demand aspects of hotel performance but also the financial impact of demand. Such data is key in the measurement of the seasonality and regional dispersal of tourism, the two pillars of sustainable tourism in Ireland. A number of commercial entities are currently active in the collection of demand and financial data from hotels. Fáilte Ireland would like to partner with such an agency and to lean in on their expertise to better understand the nuances of hotel performance not just in Ireland but in competitor destinations. A hotel survey will form the core of the strategic partnership, and Fáilte Ireland’s basic needs in this respect are outlined within this document. In addition, Fáilte Ireland anticipates that the survey will form the basis for informed insights from our partner to support us in our work with the industry, not just during the current crisis but through recovery and beyond.