Monthly Hotel ROI Calculator

Boosting Revenue and Productivity at your hotel with HiJiffy’s AI

Total Number of Rooms:

Average Monthly Website Visitors:

Average Daily Rate (€):

Average Length of Stay (days):

How are these results calculated?

Time Savings:

To estimate the monthly time savings your hotel can achieve, we break down the calculation into several key steps:

1. Estimating Daily Guest Requests:

- In-House Guest Requests: These include requests from guests currently staying at the hotel, such as room service, housekeeping, concierge services, and maintenance. We assume that each guest makes an average of 2.5 requests per day. Additionally, we consider an average hotel occupancy rate of 70%, meaning 70% of the rooms are occupied on any given day.

- Potential Client Inquiries: These are inquiries from potential guests about reservations, amenities, or general hotel information. We estimate that, on average, there are 5 inquiries per 100 rooms per day.

2. Calculating Daily Check-ins:

The number of daily check-ins is based on the hotel's occupancy rate and the average length of stay (ALOS). We assume an average occupancy rate of 70%, meaning 70% of the rooms are occupied daily. The number of daily check-ins is then calculated by dividing the number of occupied rooms by the ALOS, which gives us the turnover of guests.

3. Applying Industry Benchmarks for Time per Task:

- Check-ins: We use an industry-standard estimate that each check-in takes approximately 10 minutes.

- Requests: The average handle time (AHT) for guest requests is estimated to be 3 minutes and 11 seconds, as reported by HubSpot.

4. Calculating Time Savings Through Automation:

- Requests: We apply an automation rate of 85% to guest requests, meaning 85% of these requests can be handled automatically by our system, significantly reducing the workload for your staff.

- Check-ins: We apply a 50% automation rate to check-ins, meaning half of the check-in process can be automated.

5. Accounting for Variability:

To provide a conservative estimate, we apply a ⅓ margin to the calculated time savings. This adjustment ensures that our estimates account for potential fluctuations in actual time saved, giving you a more reliable and realistic figure.

6. Calculating Financial Savings:

The total monthly savings in human labor are calculated by multiplying the total hours saved by the average labor cost of 15 euros per hour. This gives you a clear view of the financial impact of implementing our automation solutions.

Direct Bookings:

To estimate the potential increase in direct bookings and the corresponding revenue boost your hotel could achieve, we follow these steps:

1. Baseline Direct Bookings:

We start by estimating the current number of direct bookings your hotel receives each month. To do this, we assume an industry average website conversion rate of 2%. This means that, on average, 2% of your website visitors convert into direct bookings.

Calculation: We multiply your total number of website visitors by this 2% conversion rate to establish a baseline for your current monthly direct bookings.

2. Estimating the Impact of the Chatbot on Direct Bookings:

- Conversion Rate Influence: Our solution has been shown to positively impact the conversion rate of website visitors to direct bookings. Based on real-world data from HiJiffy clients, we model two scenarios:

- Conservative Scenario: A 3% increase in direct bookings due to the chatbot's influence.

- Optimistic Scenario: An 8% increase in direct bookings.

These percentages reflect the additional bookings generated through both the chatbot interactions and the improved overall booking experience on your website.

3. Calculating the Number of Additional Direct Bookings:

For each scenario, we calculate the increased number of direct bookings by applying the respective percentage increase to your baseline monthly direct bookings. This gives us an estimate of how many more bookings you can expect to gain directly from the chatbot's impact.

4. Estimating Potential Revenue from Increased Direct Bookings:

- Average Daily Rate (ADR): We use your hotel’s average daily rate as a basis for calculating revenue.

- Average Length of Stay (ALOS): We also factor in the average length of stay for guests to estimate total revenue per booking.

- Revenue Calculation: The potential additional revenue is then calculated by multiplying the number of additional bookings by both the ADR and the ALOS. This provides a clear picture of the potential financial gain from the increase in direct bookings facilitated by the chatbot.

Boost Your Hotel’s Return on Investment (ROI) with HiJiffy’s AI Solutions

What is Hotel ROI?

Hotel Return on Investment (ROI) is a key performance metric that measures the profitability of your hotel’s investments, from operational costs to marketing spend. Calculating ROI helps hotel owners understand which strategies and tools bring the best returns, allowing for smarter financial planning and increased profitability.

The Hotel ROI Calculator by HiJiffy is a tool designed specifically for the hospitality industry. It allows you to estimate the monthly and yearly financial impact of integrating AI-driven solutions into your hotel operations. By considering variables like occupancy rates, direct booking conversion rates, and labor costs, this calculator shows how automation can help hotels reduce costs, increase efficiency, and drive revenue.

How to Use the Hotel ROI Calculator

To make the most of the Hotel ROI Calculator, follow these simple steps:

Enter the Total Number of Rooms: Input the total guest rooms in your hotel. This number will help gauge the potential volume of guest interactions and inquiries.
Average Monthly Website Visitors: Add the typical number of monthly visitors to your hotel’s website. Website traffic is a key indicator of potential direct bookings and serves as the basis for estimating conversions.
Average Daily Rate (ADR): Input the average revenue generated per occupied room per day. This is a vital factor in calculating revenue from additional direct bookings.
Average Length of Stay (ALOS): Specify how long guests typically stay. Knowing the average length of stay helps in accurately predicting both guest turnover and potential additional revenue from bookings.

Understanding the Key Variables in the Hotel ROI Calculator

1. Guest Requests and Occupancy Rate

The calculator estimates that each guest generates an average of 2.5 requests per day, including room service, housekeeping, and concierge inquiries.
An occupancy rate of 70% is assumed, meaning 70% of rooms are occupied on an average day. This allows the calculator to estimate both the volume of requests and check-ins.

2. Automation in Guest Requests and Check-ins

With HiJiffy’s AI, an estimated 85% of guest requests and 50% of check-ins can be handled automatically. This level of automation allows hotels to significantly reduce labor time and cost, freeing up staff to focus on delivering personalized service.
Each guest request is calculated at around 3 minutes and 11 seconds to handle, and each check-in at 10 minutes. By automating these tasks, the calculator can provide a realistic estimation of time savings in human hours, translating directly to financial savings.

3. Calculating Direct Bookings and Revenue Impact

Based on industry standards, the tool estimates that 2% of website visitors convert into direct bookings. HiJiffy’s AI-driven chatbot can enhance this by making the booking process more seamless and engaging.
Two scenarios are included:
- Conservative: A 3% increase in direct bookings due to chatbot interaction.
- Optimistic: An 8% increase in direct bookings, based on data from HiJiffy clients.
With each new booking, ADR and ALOS determine the potential revenue. For example, if your ADR is €150 and your ALOS is 2 days, every additional booking equates to €300 in revenue.

Why Use a Hotel ROI Calculator?

Calculating your hotel’s ROI with a tailored tool like the Hotel ROI Calculator allows you to understand how technology investments impact your bottom line. Unlike generic ROI calculators, this tool is customized for the hospitality sector, taking into account the specific metrics that drive profitability in hotels.

Key Benefits:

Quantify Time Savings: Easily see how automating guest requests and check-ins reduces staffing needs and labor costs.
Boost Direct Bookings: Understand how HiJiffy’s AI chatbot can help increase website conversions, driving more direct revenue.
Visualize Financial Impact: With conservative and optimistic scenarios, you can make data-driven decisions with realistic projections for monthly and annual returns.

Example Calculation: Estimating ROI for a 100-Room Hotel

Imagine you run a 100-room hotel with an ADR of €100, ALOS of 3 days, and average monthly website visitors of 10,000. Here’s how the Hotel ROI Calculator would break down your potential ROI:

Total Daily Requests: With 70% occupancy, you have 70 occupied rooms, generating 2.5 requests per room daily = 175 requests per day.
Time Saved Through Automation: With each request taking ~3 minutes, automating 85% of these requests would save approximately 7.4 hours daily, adding up to over 220 hours monthly.
Financial Savings: At an average labor cost of €15 per hour, these time savings translate to €3,300 in monthly labor cost savings.
Additional Direct Bookings: Assuming a 3% increase from the chatbot, the monthly website visitor conversion rate grows to 2.06%, leading to additional direct bookings.
Revenue Increase: With additional bookings factored by ADR and ALOS, revenue gains could reach thousands of euros monthly.

Optimizing Your Hotel’s ROI Strategy with HiJiffy

Using the Hotel ROI Calculator, you can accurately estimate how AI solutions will contribute to your hotel’s Return on Investment (ROI). By streamlining guest requests, enhancing direct bookings, and reducing operational costs, HiJiffy enables hotels to maximize returns and enhance guest satisfaction simultaneously.

Hotels that invest in AI-driven solutions not only improve profitability but also create more efficient workflows, allowing staff to focus on guest experience and satisfaction. The Hotel ROI Calculator provides hotels with a clear, quantifiable path to enhanced revenue and operational efficiency, tailored specifically to the unique needs of the hospitality industry.

Start using the Hotel ROI Calculator today and discover how HiJiffy’s AI can help your hotel achieve its best possible return on investment.