“Hello everyone and welcome to the J’poster Complet . I am Guillaume, revenue integrity and quality manager within the team. Today, I wanted to discuss with you a topic about indicators .
It's true that we have often talked on the channel about revenue management , how to create strategies , what are the good things to see, but concretely, what should we look at to know if we are doing well or not ? These are the indicators , it’s science , it’s math , it’s numbers that we have to look at. This topic will be covered in two videos. We will start with more classic indicators , which you probably know, or not, and then in a second video, we will perhaps go to indicators that you are less accustomed to looking at, but which are just as important .
So, we'll start with the indicator that most people are most familiar with: the occupancy rate . Obviously, when we start, we want our accommodation to be full. So, this is the first thing we will look at: the occupancy rate. But like any indicator, looking only at the occupancy rate is of no interest. We will do a simple calculation: if you are 100% full but at a ridiculous price, obviously you will not be profitable, you will not make money, and that is not your goal. So, we will have to look at another indicator: the average price . The average price, simply put, is the booking amount divided by the number of rooms or apartments, and divided by the number of days to get your average price per day.
In the same way as for the occupancy rate, if we only look at the average price and focus solely on that, it is of no interest. If we only sold one night in the month but it was very expensive, we will have an excellent average price, but we will not have generated any income because we will only have sold one night. This brings us to the essential indicator for any self-respecting revenue manager RevPAR . What is RevPAR? It is quite simply the contraction of the occupancy rate and the average price. The formula is simple: occupancy rate times average price. We talk about RevPAR based on the number of days available. If, for example, in a 30-day month, you had to block your inventory for 5 days due to a problem with the accommodation, you do not calculate on 30 days, but on the days available for sale, i.e. 25 days in this case.
Then another metric that I wanted to touch on, the fourth one in this video, is total revenue . At the end of the month, what we will look at is the turnover . This indicator can be meaningful on a day-to-day basis; it speaks more to managers than an occupancy rate, an average price or a RevPAR. This is really what gives a general idea and allows you to know if you can repay a loan, or if you can pay the rent in the case of a sublet. But like all other indicators, it must be combined with other indicators. For example, if you took a big booking, great, it filled you up well for the month, but maybe it lowered the average price because of discounts based on length of stay. additional income must be included , such as cleaning fees or additional services (breakfasts, early arrivals, late departures, etc.).
Another key indicator for knowing which strategy to adopt in the long term is length of stay . Depending on market trends, lengths of stay can vary significantly. For example, in a seaside resort in winter, you will have shorter durations, with stays limited to weekends, while in summer, we will favor weekly reservations . This can guide your strategic decisions, such as requiring a 7-night minimum for weekly rentals. If you see that the average duration of the market is 2 nights, but you impose a 4 night minimum, you will miss out on customers who prefer shorter stays.
Another important indicator is the booking window or reservation time. This allows you to know if travelers are booking last minute or in advance. This helps you manage your prices and avoid panic if you don't have reservations in the next two weeks, especially if you're in a market where last-minute reservations are common. Conversely, if your market is based on advance bookings and you do not have advance reservations, it may be time to review your prices.
Finally, the last point for this video is the rate of direct reservations versus those made via the platforms. We would all like to have 100% direct bookings to avoid commissions , but in reality, we need platforms. It is important to monitor this rate to see if you are able to capture more and more direct customers and be more profitable.
There you go, I hope that these first indicators will help you better understand how to manage your revenue management and your Airbnb properties . I invite you to like the video or comment if you liked this topic. We'll see you in a second video to discuss other indicators. If you have suggestions for indicators that I have not mentioned, do not hesitate to mention them in the comments, this could be the subject of a future video. »