“As we enter week six since the new launch of the re-DISCOVER restaurant initiative I would like to use this column to publicly thank the Barbados Tourism Authority for their whole-hearted support.
It has been a refreshing revelation and a role model example of how the private and public sector can work successfully together to drive additional business.”
In tourism, just like many other businesses we talk frequently about the bottom line but do we really pay enough attention to the subject.
For instance, how many hotels have sat down and calculated what difference a ten per cent increase in average annual occupancy and a net rise of US$10 or US$20 per occupied room night would make to their turnover and viability?
To use a simple example of a lower end 100 room hotel with a normal nightly rate of US$100 and currently achieving an annual occupancy level of 50 per cent which is pretty typical of many of our properties – In accommodation revenue alone that would generate US$1.825 million a year. Take that occupancy level to 60 per cent at an average of US$110 per room and immediately turnover climbs to US$2.409 million.
That’s an income differential of US$584,000.
Or US$830,000 if the price rise is US$20 per room per night. Continue reading