STRonomics

Boosting ADR vs. Maximizing Occupancy

Mar 28, 2024

The podcast discusses how property amenities like air conditioning, outdoor lighting, and food offerings impact Average Daily Rate (ADR) and occupancy rates. It emphasizes the importance of strategic investment in amenities to enhance guest experience and attract specific guest avatars. The hosts also explore maximizing ROI, guest lifetime value, and the creative marketing of amenities to encourage repeat bookings.

26:49

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Quick takeaways

Certain property amenities may not directly boost ADR but can significantly enhance occupancy rates and attract specific guest avatars.

Investing in well-designed outdoor lighting can enhance property value, boost ADR, and attract more guests, leading to potential revenue increases.

Deep dives

Effect of Amenities on ADR and Occupancy

Small amenities like adding a coffee bar, mural, or bicycles to a property may not directly increase Average Daily Rate (ADR) but can enhance occupancy. In the podcast, examples were shared where adding air conditioning or a $169 beach cruiser did not raise ADR significantly but improved occupancy during off-peak seasons. The key takeaway was that while certain amenities attract guests and improve experiences, they may not always lead to higher pricing.

Introduction

2min

Maximizing Occupancy Rates through Property Amenities

7min

Enhancing Property Attractiveness with Innovative Lighting and Amenities

13min

Optimizing Amenities for Targeted Guest Experience

3min

Enhancing Guest Experience with Amenities and Lighting for Marketing

2min

This episode of STRonomics is proudly sponsored by MarketMySTR.com, the leading marketing platform for STR Industries.

In this episode of STRonomics, hosts Bill Faeth and Kenny Bedwell dive into the topic of how certain property amenities, like coffee bars, murals, bikes, and air conditioning, impact rental properties' Average Daily Rate (ADR) and occupancy rates. Kenny shares insights from his experience and observations from different markets, emphasizing that while certain amenities may not directly boost ADR, they can significantly enhance occupancy rates and attract specific guest avatars, thereby indirectly increasing revenue. They also discuss the importance of understanding the return on investment for each amenity added and targeting amenities towards the property's guest avatar to ensure they enhance the guest experience effectively. Furthermore, the episode explores the concept of guest lifetime value and how unexpected, minor amenities can lead to repeat bookings. The discussions also cover various amenity ideas, from lighting and food-related amenities to unique additions like heated pools, emphasizing creative marketing and the guest perception of these features.

00:01 Welcome to STRonomics: A Unique Introduction

00:49 The Power of Amenities in Property Management

01:28 The Impact of Air Conditioning on ADR and Occupancy

08:01 Exploring the Benefits of Outdoor Lighting

13:13 Food Amenities: Enhancing Guest Experience

15:33 Maximizing ROI: When to Stop Adding Amenities

21:25 Targeting Amenities to Your Guest Avatar

25:50 Closing Thoughts and Call to Action

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Watch this podcast each Thursday on our YouTube Channel: https://www.youtube.com/channel/UCnheh3vx0hT5Y7uHWhBs8kA

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