Optimizing Hotel Websites for AI-Driven Search: Essential Tips for 2025
Discover essential AIO and SEO tips to optimize hotel websites for AI-driven search. Boost visibility and direct bookings with conversational content and technical strategies.
At HotelMinder we believe that "if you can’t measure it, you can’t improve it”.
Managing a successful hotel has to be one of the most challenging jobs around, due to the sheer volume of responsibilities required. With so many departments and so many people that you are responsible for, it can be very difficult to find the time to review your performance.
Yet, measuring success via Key Performance Indicators (KPI) is vital for hotels and, in this article, I’ve outlined the most important ones to use!
These are the KPI’s which every property should run on the regular basis.
They are simple calculations, allowing you to access a high-level view of your hotel and also create benchmark metrics against industry standards and predictions.
Average daily rate is a simple metric used to calculate the average rate per occupied room.
You calculate average daily rate by dividing total room revenue by total rooms occupied.
With HotelMinder, instantly match with vetted, trusted hotel experts.
HotelMinder, it is about:
ADR compares your performance against your competitors and can also measure financial performance.
Although ADR can assist in analysing your hotel’s performance, it doesn’t take into account any unsold or empty rooms. Therefore, it could be deceiving in terms of overall property performance. It works well in isolation as an ongoing performance metric.
The ADR is most useful when comparing to previous periods or seasons to identify performance over time.
The most comprehensive and important metric hoteliers depend on is RevPAR. Revenue per available room is similar to average daily rate, but you include your empty rooms into the calculation.
You calculate RevPAR by dividing total room revenue by total rooms available. You can also calculate RevPAR by multiplying your ADR by the occupancy percentage.
RevPAR can predict how successfully your average rate is at filling available rooms and therefore provides a constructive view on how well your hotel is operating. However, there are other factors to consider when comparing RevPAR between different properties. RevPAR doesn’t take into account the number of rooms, so a large property with fewer filled rooms may still be making more money, even with a lower RevPAR.
Although RevPAR can assist in calculating revenue, it’s not foolproof. For one, RevPAR does not take into account CPOR (costs per occupied room). Moreover, RevPAR does not account for any additional income which the hotel generates from other departments, such as catering, parking or the spa. Because RevPAR does not account for CPOR, it can’t be used as a key metric in measuring profitability, which as we know is the key aim for most hotels!
Your occupancy rate is the most basic metric which you can run and it can be applied to any specific period of time you want to analyse; daily, weekly, monthly, or yearly.
What is your occupancy rate on any given night? To know this, you must know how many total rooms you have, how many rooms are empty, and how many rooms are booked.
Divide the number of rooms which are occupied by the total rooms that are available to determine your occupancy rate as a percentage.
When you make a habit of doing this type of data tracking over time, you can see how well you are performing over the course of the season, track month-on-month performance, and see how your hotel marketing and advertising campaigns are affecting your occupancy levels.
There are many ways to increase a hotel Occupancy Rate, including:
The Average Length of Stay, or LOS, refers to the average number of nights that guests spend in the hotel.
This metric identifies the average length of stay of your guests, which is calculated by dividing the total number of occupied room nights by the number of bookings. A higher number is better, as a low LOS metric means reduced profitability due to increased labour costs.
For example, if you had one week of one night stays, rather than one guest over the period of a week, your labour costs increase exponentially, even though the total number of room nights are the same. Turning over the room in between guests equals additional labour costs.
If your LOS metric shows that for a certain time period you are accommodating more one-night stays than usual, then you can make revenue management adjustments and maybe increase your one-night rate, while offering a more forgiving rate for 2+ night stays. Sundays are usually the most quiet day of the week and you can therefore place a minimum LOS restriction on Saturday bookings, to allow for increased two nights plus bookings.
When you are aware of guest’s length of stay, you can also determine how other hotel metrics are affected. During a period of low-night stays, you might increase profits by increasing the price per night.
Gross Operating Profit Per Available Room (GOPPAR) is a particularly useful metric for hotel owners as it gives them an idea of how valuable their hotel is as an asset.
GOPPAR is the total revenue of the hotel less expenses incurred earning that revenue, divided by the number of available rooms.
If you want to look at overall performance, GOPPAR is effective because it looks at all rooms, whether they have guest’s occupying them or not. GOPPAR includes hotel variables, such as furniture depreciation and internet costs, and is therefore a strong indicator of performance across all revenue streams.
There's many ways to increase a hotel Gross Operating Profit Per Available Room (GOPPAR), for example:
CPOR - Cost per occupied room helps you to determine how efficient your property is per sold room.
To determine CPOR you must divide the total, gross operating profit by total rooms available. Gross operating profit is your ‘net sales’ minus ‘cost of goods sold’ minus ‘operating expenses’, which includes selling, general, and administrative expenses.
CPOR allows you to view room profitability and takes into account your expenses, both fixed (such as rent) and variable.
It is a simple calculation: measure the average variable expenses per occupied room (base this on your historical accounting information) and average additional income per occupied room from other revenue generating departments.
It is calculated by dividing the variable net revenues of a property by the total number of available rooms.
We noticed that RevPAR doesn’t really give us any information about the real profitability, therefore, hoteliers nowadays should implement a more accurate indicator, such as ARPAR, which is a clear reflection of the ‘bottom line profit’.
Competition benchmarking will help you compare your property’s performance against your competitors. There are several different metrics you can use to measure against your competition, here are a few of the most popular benchmarking KPIs to get you started.
Guest satisfaction is key to any hotel business. It is a great indicator of how well your property is performing and allows you to make impactful changes. Here are some of the most useful reputation management KPIs.
With years of experience in assisting hoteliers manage operations or opening up innovative hotels across the world, Benjamin has been a trusted name in the hospitality industry, and is well known for his knowledge and expertise in European markets.
HotelMinder connects hospitality professionals instantly to trusted experts, tailored solutions, and actionable insights. Our marketplace simplifies finding vetted hospitality technology and services matched precisely to your goals, while our open knowledge platform delivers expert-driven marketing, revenue, technology, and operational resources to help your hotel thrive.
Browse Knowledge Hub
Share your vision: whatever your hotel needs to thrive, we're here to help.
We'll quickly match you with trusted hospitality experts precisely suited to your needs.
Your matched expert gets to work, implementing clear plans to reach and exceed your goals.
Stop searching, start doing.
Check out the latest insights, news and articles from the HotelMinder team, industry leading technology vendors and hospitality consultants.
Discover essential AIO and SEO tips to optimize hotel websites for AI-driven search. Boost visibility and direct bookings with conversational content and technical strategies.
Discover Revenue Analytics' new AI-powered Commercial Suite for N2Pricing RMS, featuring an AI Report Generator, Health Scorecard, and Extended Stay Rate Management to optimize hotel revenue.
Comprehensive guide to hotel room categories and classifications. Understand the differences between standard, deluxe, and suite rooms for better booking decisions and revenue management.
Explore how to select the ideal Revenue Management System (RMS) for your hotel and maximize ROI with our 10-step checklist.
Discover more insightful articles in our Knowledge Hub and Partners Hub.
Subscribe now and get special offers, the latest news and updates from us & our partners.