I’m sure every hotelier reading this post will be able to tell me the average occupancy across their hotel off the top off their head. However, there's another metric that goes completely untracked that we feel deserves similar attention. And that's the concept of "Down Hours".
What are Down Hours?
Down Hours are the length of time between the previous guest checking out of their room and the next guest checking in.
Why do Down Hours matter?
Because every hour that your rooms sit empty, cost you money.
As I'm sure you are well aware, your guests don't stick to the traditional 3pm to 11am check-in, check-out schedule. In some cases one of your guests might have check-out as early as 7am and the next guest might not have arrived until 6pm. That room has sat empty for 12 hours, that's 12 hours of lost revenue to your hotel.
Every hour that your rooms sit empty, cost you money.
How much revenue is at stake?
We have done a lot of research here at HotelFlex into how long your rooms sit empty between guests checking in and the next guests checking out and the associated revenue opportunity.
We have calculated that the average room in a city centre hotel sits empty for 7 hours every day, once you have accounted for cleaning time. If you were to assume an average 150 bedroom $150 a night hotel. That's $1.3 million of lost potential revenue. Every year.
How to drive revenue from Down Hours
Every hour your rooms sit empty costs you money. So how do you wrestle back some of that lost revenue?
Early Check-ins. More and more of your guests are arriving on long haul early morning flights. Your guests arrive tired and frustrated after a long journey and all they want is to check into their room, shower and rest up. Learn more about the reasons behind that here.
The HotelFlex upgrade platform automates the process of up selling early check-ins to your arriving guests by integrating into your PMS and offering the room for a set price as soon as it has been cleaned and inspected. Allowing you to generate incremental revenue from rooms that would have otherwise sat empty.
What to know how much money your hotel can make? Visit www.hotelflex.io and fill out our free revenue calculator.