Hotel Performance: January to April 2018

Our hotels are Smokin’ Hot!  (and it’s not just the weather)

The latest ‘Trends’ report from CBRE Hotels paints another very positive picture for our hoteliers. Revenue Per Available Room (RevPAR) for the region was up a spectacular 17.3%. This compares very favourably with a 9.2% increase for Ontario overall and a 5.9% increase for all of Canada. Sarnia led the way with a whopping 36.5% increase! While some of that was driven by construction-related demand, “Most of the growth to date has been driven by sports tournaments, festivals and other tourism.” says Joy Sim, Acting General Manager of Tourism Sarnia Lambton.

Why RevPAR?

So why do I focus on RevPAR as the measure that I think is most important? Joseph Rael, Director of Financial Performance – STR explains it this way: “Hotel profitability is the primary measure of success for hotel owners, managers and operators.” But “profitability data is much more difficult to amass” than revenue or top-line data. Luckily, there is “a clear relationship between top-line performance (RevPAR) and overall profitability (gross operating profit per available room” (GOPPAR)).(1) Even a non-hotelier like me can appreciate the straight line relationship, so I focus on RevPAR. I am happy to hear other opinions.

What about Average Daily Rate (ADR)?

The above is not to imply that the Average Daily Rate (ADR) is not important. In this category, Windsor had a strong showing with its ADR up 12.2% to $126.40. The increase was more than double the Ontario average increase of 5.6% and the Canadian average of 4.5%.

Gordon Orr, CEO of Tourism Windsor Essex Pelee Island adds: “The success is a testament to the owner groups who continue to invest in infrastructure and for bringing on new flags and individual hoteliers themselves who manage and market their hotels in a very competitive market by delivering superior customer service.” It appears that the $76 million invested in recent upgrades to Windsor hotels is really paying off!

1. “How RevPAR growth translates into profits” by Joseph Rael, Hotel News Now, June 14, 2018 with permission of the author.

Tourism Sarnia-Lambton Welcomes New Board President

Tourism Sarnia-Lambton (TSL) formally announced Mary Jean O’Donnell as its new President of the TSL Board of Directors. Past Board Treasurer, Ms. O’Donnell will now replace former President Karen Richards. Kevin Williams will act as Board Treasurer, and member Beverley Hand will act as Board Vice-President.

Unlocked and Inspired: A Success Story

When David Schonberger, Craftsman and Owner at Ottercreek Woodworks met with Celes Davar, he expected to get inspired and hear about innovative ways to showcase his craft as a tourism experience product. But what materialized after was even bigger: the creation of 4 successful sold-out woodworking workshops and weekly calls from customers wanting more. David is now thinking of having 2 or 3 different types of workshops in addition to the one originally offered. 

"Celes helped me tap into creative endless possibilities of telling my own story, offering visitors an experience of the craft I do, in ways that I never thought I could offer before. He stimulated my desire to keep improving what we are doing. He is quite the guy".

- David Schonberger

Unlocked and Inspired is designed to inspire you to think about creative collaboration, innovation, and raising the bar on experiences that add new revenues and new value to your business and community.

Join Celes Davar for this year's Unlocked and Inspired in Oxford County. November 12th-14th, at Leaping Deer Adventure Farm and Market, in Ingersoll. Registration is $350 without accommodation, and $560 with accommodation, first come first serve.

Click here to register now!

The Age of Visual Culture

Video on a landing page can increase conversions by 80% or more according to a guide released by CrowdRiff for tourism marketers. Photos and videos are amongst the most important driving forces to capture and engage market audiences.

We have partnership opportunities available for operators & business owners who would like to enhance their presence by using either Photography or Videography visuals. To learn more e-mail us at project@swotc.ca (First come, first serve. Many thanks for your understanding).

July's Poll:

Do you Collect Postal Code Information from your Visitors?

Let us know!

In the News:

Bus route from London to Grand Bend

The Bend Bus London kicked off on July 7 to offer Londoners a day at Lake Huron’s beach and enjoyment of the many offerings in Grand Bend.

The bus will depart from a couple of locations in London on select Saturdays during the months of July and August.

Click here to read the full article.