Hotel Benchmarking Tool

What is Hotel Benchmarking?

Hotel Benchmarking is a process used to measure a hotel’s performance in comparison to industry standards and peers. This strategic analysis allows hoteliers to identify strengths, pinpoint areas for improvement, and set realistic goals for operational efficiency, guest experience, and profitability.

In the hospitality industry, where guest expectations and operational costs are continually evolving, benchmarking provides insights that can drive impactful decision-making. By using benchmarks tailored to hotels, operators can make informed improvements in areas like guest satisfaction, direct booking rates, response times, and operational workflows.

Using the Hotel Benchmarking Tool to Improve Your Hotel’s Performance

The Hotel Benchmarking Tool by HiJiffy is designed to give hoteliers a clear view of how their property performs compared to both industry averages and the optimized benchmarks achieved by leading hotels with HiJiffy’s AI solutions. This step-by-step guide will help you get the most out of the tool:

Step 1: Input Key Performance Metrics

1. Average Guest Request Resolution Time (minutes): This is the time your team takes to resolve guest requests, such as room service or housekeeping inquiries. The faster the resolution time, the more satisfied guests tend to be.

2. Direct Bookings Conversion Rate (%): Direct bookings are those made directly through your website rather than through third-party platforms. A higher conversion rate for direct bookings reduces dependency on Online Travel Agencies (OTAs), leading to increased revenue.

3. Online Check-In Completion Rate (%): The percentage of guests who complete online check-ins can indicate how tech-friendly and streamlined your operations are, which directly impacts guest convenience and satisfaction.

4. Upsell Campaign Open Rate (%): This metric tracks the percentage of guests who open promotional offers. A higher open rate means that guests are engaged with your upsell campaigns, opening opportunities to increase revenue per guest.

After entering these metrics, simply submit the form to generate a custom report.

Benchmark Variables Explained: Why These Metrics Matter

1. Guest Request Resolution Time

• Industry Benchmark: Industry standards suggest an average guest request resolution time of about 3.18 minutes.
• Impact: Speedy request resolution is a hallmark of great service, often leading to higher guest satisfaction and loyalty.
• HiJiffy Benchmark: With AI automation, hotels have achieved resolution times as low as 1.28 minutes, reflecting the powerful role automation can play in enhancing guest experience.

2. Direct Bookings Conversion Rate

• Industry Benchmark: On average, direct bookings conversion rates hover around 2%.
• Impact: Increasing your direct bookings conversion rate helps reduce costs associated with OTAs, leading to higher profitability.
• HiJiffy Benchmark: Using HiJiffy’s AI-powered solutions, hotels have optimized direct booking rates, achieving conversion rates up to 10%.

3. Online Check-In Completion Rate

• Industry Benchmark: Typically, 28% of guests complete online check-ins.
• Impact: High online check-in rates streamline the check-in process, reduce wait times, and contribute to a positive guest experience.
• HiJiffy Benchmark: By implementing AI-driven solutions, some hotels have achieved a 50% increase in online check-in completion, reaching rates as high as 70%.

4. Upsell Campaign Open Rate

• Industry Benchmark: The average open rate for upsell campaigns in hospitality is around 32.5%.
• Impact: An increase in open rates means guests are engaging with offers, enhancing the potential for increased revenue.
• HiJiffy Benchmark: With targeted AI-assisted messaging, some hotels have achieved open rates as high as 84%, driving substantial incremental revenue.

Benefits of Hospitality Benchmarking for Hotels

Benchmarking is more than just a performance comparison; it’s a strategy for continuous improvement. Here are some of the primary benefits of benchmarking in the hospitality industry:

1. Identifying Performance Gaps: By comparing your metrics with industry standards, you can quickly identify areas that need attention, allowing you to target improvements where they’re needed most.

2. Enhancing Operational Efficiency: Benchmarks can reveal inefficiencies in processes like check-ins, guest request handling, and campaign management, helping you to implement changes that streamline operations.

3. Driving Revenue Growth: Through insights on metrics like direct bookings conversion rates and upsell campaign open rates, benchmarking can directly inform strategies to increase revenue.

4. Improving Guest Satisfaction: Faster response times and convenient services, like online check-in, lead to better guest experiences and repeat visits.

Examples of Benchmarking in the Hospitality Industry

Real-life examples from hotels that have improved their performance with benchmarking provide actionable insights. Here are a few success stories:

• Leonardo Hotels: By implementing HiJiffy’s AI solutions, Leonardo Hotels achieved a 93% automation rate in guest requests, saving over 14,000 hours in labor annually.

• Lake District Hotels: This hotel group reduced incoming calls by 70%, allowing staff to focus on personalized guest service and improving overall guest satisfaction.

• Lamington Group: Achieved a guest satisfaction score (CSAT) of 87% by automating 93% of guest interactions, demonstrating the power of AI in enhancing both operational efficiency and guest experience.

These examples illustrate how benchmarking with HiJiffy’s tools can lead to tangible, measurable improvements in efficiency, guest satisfaction, and revenue.

How HiJiffy’s Benchmarking Tool Works: A Breakdown of the Report

After submitting your data, the Hotel Benchmarking Tool generates a custom report that includes:

1. Visual Comparisons with Industry Standards: Each metric is presented in a bar chart, allowing you to easily see how your hotel’s performance stacks up against both industry averages and HiJiffy-optimized benchmarks.

2. Case Studies: Each section of the report includes case studies from hotels that have successfully enhanced their metrics by using HiJiffy’s AI solutions, providing real-world examples of the tool’s impact.

3. Actionable Insights: By highlighting areas where your metrics are below HiJiffy’s optimized standards, the report provides guidance on where and how you can improve.

Start Your Hotel Benchmarking Journey with HiJiffy

In today’s competitive hospitality industry, continuous improvement is essential. The Hotel Benchmarking Tool by HiJiffy makes it easy to understand your current performance, compare it to industry standards, and identify specific areas for growth.

Benchmarking with HiJiffy is not just about measurement – it’s about improvement. By providing your team with data-driven insights and access to powerful automation, HiJiffy empowers your hotel to reach and surpass hospitality industry benchmarks. Whether you’re focused on guest satisfaction, direct bookings, or operational efficiency, benchmarking is the first step toward sustainable growth.

Start using the Hotel Benchmarking Tool today to unlock new opportunities for efficiency, revenue, and guest satisfaction. With HiJiffy, benchmarking becomes a powerful ally in achieving industry-leading performance.