Hotel Room Inventory

Managing your hotel’s room inventory is one of the most important parts of running a successful property. Every time a guest books a room, whether online, through an online travel agency (OTA) or over the phone, you need to keep your inventory updated to avoid overbooking and ensure a smooth experience.

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But inventory management isn’t just about preventing mistakes. Done right, it can help you boost revenue, improve operations, make informed decisions about room pricing and deliver a better guest experience. Let’s break down what room inventory management is, why it matters, and how you can master it.

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The 4 Elements of Room Inventory Management

On average, a hotel’s occupancy hovers around 63%, but this can vary wildly based on seasonality, room type and more. Managing room inventory involves several factors, including:

1. Total number of rooms: How many rooms your property has overall
2. Room types: The categories of rooms you offer, (i.e. standard rooms, suites, or accessible rooms)
3. Availability: How many rooms of each type are ready to book on any given day.
4. Room rates: What you’re charging for each room, which can change based on demand.

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Using the Room Inventory Formula

Figuring out your available room inventory shows you how many rooms you can sell and gives you a clear idea of your revenue potential. Here’s the simple formula to use:

Total Available Rooms = Total Number of Rooms - Unavailable Rooms

Pro Tip: Unavailable rooms include more than just the ones that are occupied. It also covers rooms under maintenance, extra cleaning or repairs.

Example:

Let’s say your hotel has 100 rooms, 20 are occupied, 5 are under maintenance, and 2 are being cleaned. So, to calculate your total available rooms, you’d do the following:

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Total Available Rooms = 100 - (20 + 5 + 2) = 73

Why is Room Inventory Management Important?

Maintaining your room inventory accurately is one of the most important parts of managing a hotel. Understanding the number of rooms you have, the number you can book and the price you can set them at can make a huge difference in your revenue management strategy. 

Here are some reasons why room inventory management is so important:

• Smarter pricing: Knowing exactly how many rooms are available helps you adjust rates based on demand, so you can make the most of high-traffic times.
• Streamlined operations: When your inventory is up to date, housekeeping and operations teams know exactly what needs attention, saving time and preventing confusion.
• Fewer overbookings: Keeping tabs on inventory reduces double-bookings, keeping guests happy and avoiding bad reviews.
• Better guest experiences: With accurate room data, you can fulfill guest requests more easily, like providing a specific room type or location.

How Technology Can Help You Sell More Rooms

Once you understand how many rooms you can sell, you can begin the work of keeping them booked — which is where hospitality technology can help. Leveraging a guest experience platform provides a tech-forward way to create a modern, streamlined experience, incentivizing guests to book again and again. Want to learn more? Book a demo today.