For many hotel owners and managers in East Africa, the monthly performance meeting still begins with one familiar question:
“What was our occupancy?”
Occupancy is important—but it is only one part of the commercial picture.
A hotel can be 80% occupied and still struggle to make money. Conversely, a hotel operating at a lower occupancy level can sometimes generate stronger profits if it achieves the right room rates, controls distribution costs, attracts profitable segments and maximises total guest spending.
This is where a hotel revenue and profitability consultant can make a practical difference.
The consultant’s role is not simply to produce reports. It is to help management identify where money is being made, where it is being lost and what actions can improve the hotel’s financial performance.
1. Start With the Numbers—Not Assumptions
The first step should be a commercial performance diagnostic.
Before recommending changes, examine at least the previous 12 months of:
- Occupancy
- ADR
- RevPAR
- Room revenue
- F&B revenue
- Other departmental revenue
- GOP and GOPPAR
- Payroll
- Food and beverage cost
- Energy costs
- OTA commissions
- Marketing expenditure
- Distribution costs
- Corporate and contracted rates
- Group and MICE business
- Direct bookings
Do not simply look at annual averages.
Break the information down by month, market segment, room type and distribution channel.
For example, if occupancy is 72%, ask:
- 72% from whom?
- At what rate?
- Through which channel?
- At what acquisition cost?
- And what did those guests spend beyond the room?
That is where profitability analysis begins. let https://tmm-hospitality.com you that!!!