Value of the STR Report in the Hotel Industry
Updated: Dec 13, 2023
Mastering the Competitive Hospitality Landscape: Unveiling the Value of STR Reports with GHC Funding
In the vibrant and competitive world of hospitality, understanding market trends and dynamics is essential for hotels aiming to attract travelers and elevate their occupancy rates. One of the powerful tools aiding this pursuit is the STR report.
Since 1985, Smith Travel Research (STR) has been the cornerstone of benchmarking, insights, and analytics for hotels worldwide. This recognized and trusted tool in the industry provides hotels with invaluable weekly information, allowing them to assess their performance against competitors and make informed decisions.
Here's a comprehensive guide for hotel management and stakeholders on all aspects of the STR report:
Table of Contents
1. What is the STR Report?
2. Hotels' Data Submission for the STR Report
3. Accessing the STR Report
4. Cost of the STR Report
5. Insights Provided by STR
6. Tips for Effective STR Report Analysis
What is the STR Report?
The STR report, pronounced "STAR report," is a weekly benchmark report provided by Smith Travel Research, now under CoStar Group Inc., facilitating hotel performance evaluation vis-a-vis competitors. Participating hotels share performance metrics such as rooms sold, room rates, and occupancy with STR. This data is compiled to create comprehensive reports that enable hotels to gauge their standing against their competitive set.
The report helps hotels assess their performance concerning factors like location, customer base, services offered, and market segmentation. It allows stakeholders to strategize and enhance their operations for increased occupancy rates and optimized revenue management.
Hotels' Data Submission for the STR Report
To receive the weekly report, hotels must furnish various data points to be included in their competitive set. These data points encompass:
- Rooms Revenue: Comprehensive revenue details from guest room rentals, excluding certain fees and taxes.
- Rooms Sold: Figures regarding revenue-generating rooms sold, excluding comped rooms or owner-occupied suites.
- Rooms Available: Total room availability, subject to seasonality or specific occupancy scenarios.
- Segmentation Revenue: Categorizing revenue sources into transient, groups, and contract bookings.
Accessing the STR Report
Hotels seeking the STR report must undergo an application process and meet specific criteria for eligibility. Upon qualification, they pay to access detailed weekly reports tailored to their property's performance and competitive landscape.
Cost of the STR Report
STR offers different report types: a free Hotel Survey, a Trend Analysis report for a one-time fee of $600, and a paid Weekly Report. The detailed weekly report provides comprehensive insights into a hotel's performance compared to competitors, aiding in strategic decision-making. Pricing plans are available upon direct contact with STR.
Insights Provided by STR
The STR report furnishes crucial performance indicators:
- Occupancy Rates
- Average Daily Rate (ADR)
- Revenue per Available Room (RevPAR)
- Year-Over-Year (YOY) Comparison
- Segmentation Analysis
- Additional Revenue Analysis
Tips for Effective STR Report Analysis
Analyzing the comprehensive 18-page weekly report requires attention to detail and an understanding of key metrics. Important tips include focusing on specific sections, understanding index calculations, and scrutinizing week-to-week and month-to-month data for insights.
The STR report equips hotel brands with essential market insights, enabling them to refine strategies and secure a prominent position within their competitive set. Collaborating with GHC Funding allows hotels to capitalize on consistent, year-round revenue by leveraging the data shared with STR.
Partnering with STR opens avenues to attract more business travelers, ultimately driving long-term bookings and steady revenue streams. Embracing the partnership with STR becomes an asset for hotels, enabling them to thrive in the competitive hospitality landscape.
For more insights on leveraging data for sustained success, connect with GHC Funding today at www.ghcfunding.com and embark on a journey toward maximizing your hotel's potential.