Question 1

What's the difference between Average Spend Per Guest and TRevPAR?

Accepted Answer

Average Spend Per Guest tells you how much revenue each person generates, while TRevPAR (Total Revenue Per Available Room) tells you how much revenue each of your rooms generates, regardless of how many people are in it. Average Spend Per Guest is better for understanding the value of individual customers, while TRevPAR is better for understanding the overall asset performance of your property.

Question 2

Why is tracking Average Spend Per Guest important?

Accepted Answer

It helps you identify your most valuable guests. A family of four staying in one room might have a lower ADR than a couple in the same room, but if the family spends significantly more on food, drinks, and activities, their total spend per guest might be higher. This knowledge allows you to focus marketing on attracting the most profitable guest types.

Question 3

What are some effective strategies to increase Average Spend Per Guest?

Accepted Answer

Focus on upselling and cross-selling. Offer room upgrades at check-in, create attractive dining packages, promote your spa services through in-room advertising, and bundle activities with accommodation. Personalized offers based on guest data (e.g., offering a couples massage package to guests celebrating an anniversary) are also highly effective.

Question 4

Should I aim for a high spend from all guests?

Accepted Answer

Not necessarily. Different guest segments will have different spending patterns. The goal is to maximize the potential of each segment. For example, a business traveler might have low 'other' spend but be willing to pay a premium for convenience, like high-speed internet or express laundry. A leisure traveler might be more receptive to a spa package. Tailor your offerings accordingly.

Question 5

How does this metric relate to marketing and guest acquisition?

Accepted Answer

Knowing your average spend per guest helps you calculate a more accurate Customer Lifetime Value (CLV). This, in turn, allows you to determine how much you can afford to spend to acquire a new guest (Customer Acquisition Cost - CAC). If you know a certain type of guest spends $500 more on average, you can justify a higher marketing spend to attract more of them.

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Understanding Average Spend Per Guest

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