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Martijn Barten

35 posts
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  • 10 min

Market Penetration Index (MPI) Evaluates Hotel Occupancy Performance Relative to Competitive Set; 100 is Neutral Point

📊 Hotels use Market Penetration Index (MPI) to measure occupancy against a competitive set. An MPI above 100 indicates higher-than-expected occupancy. For instance, a hotel with 84% occupancy and a competitive set at 80% results in an MPI of 105. MPI should be analyzed with ARI (Average Rate Index) and RGI (Revenue Generation Index) for comprehensive insights. Monitoring competitive set integrity is crucial, as improper benchmarking can distort performance metrics.
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  • 9 min

Hotels Should Calculate Customer Lifetime Value by Segment for Better Profitability and Decision-Making Strategies

💸 Cornell study reveals that guests in a rewards program increased annual room nights by 45% and 49%, while revenue per night rose only 4% and 1%. Hotels should calculate Customer Lifetime Value (CLV) by segment, focusing on repeat relationships rather than just revenue. A repeat leisure guest spending €420 per stay, 1.5 times yearly, over four years has a lifetime revenue of €2,520. CLV aids strategic decisions in acquisition, CRM, loyalty, and direct bookings.
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  • 10 min

Cost Per Occupied Room (CPOR) Reveals Operational Costs Impacting Hotel Profitability Amid Rising Labor Expenses

📈 Cost per Occupied Room (CPOR) is a key metric for hotels. In October, a Porto hotel with 120 rooms and 65% occupancy reported 2,418 occupied room nights and spent €96,720 on operating costs, leading to a CPOR of €40. Labor constitutes 55-60% of these costs. CPOR helps identify profitability issues, as costs rose by 4.1% while revenue grew only 2.3% in 2024. Compare CPOR against ADR for better insights.
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  • 9 min

Comprehensive Analysis Reveals Guest Acquisition Costs in Hotels Comprise Multiple Expenses Beyond Commission Fees.

💸 During one month, a Lisbon hotel generated €396,000 from 1,150 reservations, spending €55,500 on acquisition: €38,000 on OTA commissions, €9,000 on ads, €2,700 on loyalty and promotions, €2,500 on sales, and €3,300 on transaction fees. Cost per booking is €48.26, while GAC per new guest (700 of 880 unique guests) is €79.29. These metrics help evaluate booking channels and invest wisely for future guest relationships in the competitive hotel industry.
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  • 8 min

Employee Net Promoter Score (eNPS) Provides Hotels Key Insights into Workforce Satisfaction and Retention Risks

📝 In June 2026, the U.S. Bureau of Labor Statistics reported a 4.5% quitting rate in accommodation and food services, doubling the 2.0% across the workforce. At a 90-room hotel in Porto, 40 employees achieved an eNPS of +13, with an 80% participation rate. AHLA's 2026 survey showed that over 50% of 246 hotels were understaffed. A good eNPS is not a high score but an improvement over time, reflecting trends like turnover and employee feedback.
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  • 7 min

RevPAM (Revenue per Available Square Meter) Provides Insight into Hotel Space Revenue Beyond Guestrooms.

📈 RevPAM measures hotel revenue per available square meter, enhancing space productivity assessment beyond guest rooms. Calculated by dividing revenue by available square meters, an example includes $60,000 in revenue across 2,000 square meters, totaling $30 per square meter. RevPAM identifies underutilized spaces, aiding decisions on pricing or repurposing. CBRE reported a 9.5% rise in public room rental revenue in early 2025. RevPAM should be used with other metrics to gauge true profitability.
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  • 7 min

Understanding ALOS: Key Metric for Hotel Revenue and Operations Management Analysis

🏨 A hypothetical 90-room hotel in Porto had 1,620 occupied room nights over 620 stays in a month, resulting in an Average Length of Stay (ALOS) of 2.6 nights. Direct leisure guests stay averaged 3.4 nights, while OTA guests averaged 1.8 nights. EU inter-country trips averaged 6.8 nights, with Estonia at 3.1 nights and Greece, Spain, and Cyprus over 8 nights. Pricing strategies can increase ALOS without rate reduction, improving profitability.
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Quote over a tropical resort pool: 'Marketing's job is never done. It's about perpetual motion. We must continue to innovate every day.' — Beth Comstock, former CMO & Vice Chair, GE.
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  • 22 min

Global Hotel Market Valued at $850 Billion in 2024, Expected to Grow at 18.8% CAGR by 2030

📰 In 2024, the global hotel market was valued at $850 billion, with a projected CAGR of 18.8% through 2030. Nearly 61% of hotel brands utilize first-party data strategies, leading to an 81% revenue increase. In 2026, U.S. adults are expected to spend 48 minutes daily on short-form videos, a growing marketing trend. Flexible cancellations appeal to over 50% of travelers, with 1 in 5 willing to pay more. Sustainability boosts revenue by 6%, with 44% of Gen Z prioritizing eco-friendly practices.
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