hotel management

How To Measure The ROI For Hotel Management Software

As a hotel owner, you work diligently to run your property efficiently while meeting all your guests’ needs. But like all business owners, your next priority is how much money you’re making. Hotel management software provides a lengthy list of services to help you calculate your hotel’s return on investment. To measure and improve your ROI, you’ll also want to take a look at a few major aspects of your business. 

What Should You Look For?

Hotel management software is a resource that can help you reduce costs and increase efficiency. To come up with your ROI, you need to determine the total cost of investment, as well as its net gain. You should consider the following when doing this:

  • Cost of staff
  • Sales numbers
  • Losses and human errors
  • Long-term revenue
  • Customer support cost

Management software impacts all these areas in one way or another. When implemented, it drives profitability and productivity. To gain the full benefits of your software, make sure you’re using it properly. You can create additional revenue for your hotel and influence how it operates as a whole. When your software is performing correctly and to its fullest potential, your hotel will be, too.

After considering how to measure ROI in conjunction with the use of your software, you’ll want to take a look at the primary aspects of your business. These are the parts that bring in the most ROI for your hotel. They depend on each other for success — if one is lacking, it will be apparent on all fronts.

Renting Rooms

Providing lodging is the main source of revenue for most hotels, so you want to make sure your rooms are updated, clean and provide the amenities guests come to expect. An ideal way to sell more rooms is to offer them in blocks for special events, like weddings and business trips. Doing so allows guests to easily reserve the rooms they need. At the same time, you can rent a large number of rooms in one go.

Bar and Food Service

Serving food and drinks is one of the best ways for hoteliers to make money. In 2016, the average profit margin for food and beverages in hotels was nearly 30%. By offering a delicious breakfast buffet or room service, you can give guests the option of staying onsite for their meals. The same goes for a well-maintained and enjoyable bar — if guests don’t have to go elsewhere to have a drink, they likely won’t.

Private Events

The ability to host conferences, parties and meetings allows for a prominent revenue stream. Your hotel most likely has empty conference and ballrooms that are perfect for these events. You can rent out space, as well as chairs, tables and entertainment systems. Another good move is to use your bar and food services for these events. While this can result in a positive ROI, you still need to be a little strategic

Spas, Pools and Fitness Areas

Many hotels offer services like massages and facials, as well as access to gyms and pool and hot tub areas. These all provide ways for guests to relax and entertain themselves on hotel property. Some hotels require guests to pay an extra fee if they want to use any of these amenities. Remember that perks like pools will only bring you a higher ROI if your hotel is in a location where it makes sense to have one. Those in cold climates won’t see them used as much.


The miscellaneous conveniences, like fast Wi-Fi, mobile check-in and outlets that all work can make your hotel even more attractive. If you have a reputation for providing thoughtful amenities like spare phone chargers, guests will rest assured you’ll take care of all their needs. Small gestures like this won’t be a massive expense to you, but can mean the world to your customers. 

Take a Look at Every Aspect

When determining what your ROI is and how you can improve it, you’ll want to look at every area your hotel touches. Hotel management software is a great resource to have, as long as you consider all the various factors that come in to play.