STOCK TITAN

Global Hospitality Study Exposes Critical 'Aspiration-Reality Gap' in Measuring Per-Guest Revenue Beyond the Room

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags

Agilysys released its 2024 Global Hospitality Impact Study revealing a significant gap between aspiration and reality in measuring per-guest revenue. While 82% of hospitality executives recognize the value of supplementing RevPAR with Revenue Per Available Guest (RevPAG) metrics, 56% feel technologically unprepared to implement such strategies. The study, surveying 489 executives across North America, Europe, and APAC, found that luxury properties generate up to 40% of revenue from non-room sources. Key findings show 72% of executives are willing to enhance technology infrastructure, but only 12% regularly review their system capabilities against market innovations.

Agilysys ha pubblicato il suo Studio sull'Impatto Globale dell'Ospitalità per il 2024, rivelando un significativo divario tra aspirazione e realtà nella misurazione del fatturato per ospite. Mentre 82% dei dirigenti del settore dell'ospitalità riconoscono il valore di integrare il RevPAR con metriche di Ricavo Per Ospite Disponibile (RevPAG), 56% si sentono tecnologicamente impreparati ad attuare tali strategie. Lo studio, che ha coinvolto 489 dirigenti in Nord America, Europa e APAC, ha constatato che le strutture di lusso generano fino al 40% del fatturato da fonti non legate alle camere. I risultati chiave mostrano che 72% dei dirigenti sono disposti a migliorare l'infrastruttura tecnologica, ma solo 12% rivedono regolarmente le capacità del loro sistema rispetto alle innovazioni di mercato.

Agilysys ha lanzado su Estudio de Impacto Global en la Hospitalidad 2024, revelando una brecha significativa entre la aspiración y la realidad en la medición de ingresos por huésped. Mientras que el 82% de los ejecutivos de hospitalidad reconoce el valor de complementar el RevPAR con métricas de Ingreso Por Huésped Disponible (RevPAG), el 56% se siente tecnológicamente poco preparado para implementar tales estrategias. El estudio, que encuestó a 489 ejecutivos en América del Norte, Europa y APAC, encontró que las propiedades de lujo generan hasta el 40% de los ingresos de fuentes no relacionadas con las habitaciones. Los hallazgos clave muestran que el 72% de los ejecutivos están dispuestos a mejorar la infraestructura tecnológica, pero solo el 12% revisa regularmente las capacidades de su sistema en comparación con las innovaciones del mercado.

Agilysys는 2024 글로벌 호스피탤리티 영향 조사 결과, 객실당 수익 측정에서의 기대와 현실 간의 큰 격차를 드러냈습니다. 82% 의 호스피탤리티 경영진이 RevPAR(객실 가용당 수익)의 보완으로서 RevPAG(가용 객실당 수익) 지표의 가치를 인식하는 반면, 56%는 이러한 전략을 구현하기 위한 기술적 준비가 부족하다고 느낍니다. 북미, 유럽, APAC 전역에서 489명의 경영진을 조사한 이 연구에서는 럭셔리 숙소가 40%의 수익을 객실 외의 출처에서 생성한다는 것을 발견했습니다. 주요 결과에 따르면 72%의 경영진이 기술 인프라를 향상시키고자 하지만, 실제로 12%만이 정기적으로 자사의 시스템 기능을 시장 혁신과 비교하여 검토합니다.

Agilysys a publié son étude mondiale sur l'impact de l'hospitalité pour 2024, révélant un écart significatif entre aspiration et réalité dans la mesure des revenus par invité. Alors que 82% des dirigeants du secteur de l'hospitalité reconnaissent la valeur de compléter le RevPAR par des indicateurs de Revenu Par Invité Disponible (RevPAG), 56% se sentent technologiquement non préparés à mettre en œuvre de telles stratégies. L'étude, qui a sondé 489 dirigeants en Amérique du Nord, en Europe et dans la région APAC, a révélé que les établissements de luxe génèrent jusqu'à 40% de leurs revenus à partir de sources non liées aux chambres. Les résultats clés montrent que 72% des dirigeants sont prêts à améliorer l'infrastructure technologique, mais seulement 12% examinent régulièrement les capacités de leur système par rapport aux innovations du marché.

Agilysys hat seine Globale Studie zum Einfluss auf die Gastfreundschaft 2024 veröffentlicht, die eine erhebliche Lücke zwischen Aspiration und Realität bei der Messung des Umsatzes pro Gast aufzeigt. Während 82% der Führungskräfte in der Hotellerie den Wert der Ergänzung von RevPAR mit Kennzahlen zum Umsatz pro verfügbarem Gast (RevPAG) erkennen, fühlen sich 56% technologisch unvorbereitet, um solche Strategien umzusetzen. Die Studie, die 489 Führungskräfte aus Nordamerika, Europa und APAC befragte, ergab, dass Luxusimmobilien bis zu 40% des Umsatzes aus Nicht-Zimmerquellen generieren. Die wichtigsten Ergebnisse zeigen, dass 72% der Führungskräfte bereit sind, die technologische Infrastruktur zu verbessern, aber nur 12% regelmäßig die Fähigkeiten ihres Systems im Vergleich zu Marktinnovationen überprüfen.

Positive
  • 82% of executives recognize the value of RevPAG implementation
  • 72% willing to invest in technology infrastructure enhancement
  • Luxury properties generating up to 40% revenue from non-room sources
  • 68% of executives acknowledge the need for balanced technology solutions
Negative
  • 56% of properties feel unprepared to implement RevPAG strategies
  • Only 12% of properties regularly review system capabilities
  • 38% wait four or more years between technology reviews
  • Lack of priority focus on per-guest revenue optimization

Insights

This industry research reveals significant strategic implications for Agilysys' market position and growth potential. The study highlights a critical 82% market recognition of RevPAG importance, yet exposes a substantial 56% technology readiness gap. This presents a compelling business opportunity for Agilysys to capitalize on the identified market need.

The finding that 72% of executives are willing to enhance or replace their current systems signals strong potential demand for Agilysys' solutions. The low 12% rate of regular technology review among properties indicates a significant untapped market for modernization. This research strategically positions Agilysys as a solution provider in a market actively seeking transformation.

The study reveals a significant technological transformation opportunity in the hospitality sector. The willingness of 72% of executives to upgrade their infrastructure, with two-thirds open to switching PMS systems, indicates a major market shift toward advanced revenue optimization solutions. The current low adoption of regular technology reviews (12%) suggests substantial room for technological advancement and modernization in the industry.

This gap between aspiration and technological readiness presents a prime opportunity for Agilysys to expand its market share by offering solutions that bridge this divide, particularly in RevPAG optimization and guest experience personalization technologies.

-- Research from Agilysys reveals 82% of hospitality executives recognize the value of augmenting RevPAR metrics with Revenue Per Available Guest (RevPAG) goals, but 56% feel unprepared to do so --

SAN ANTONIO & ALPHARETTA, Ga.--(BUSINESS WIRE)-- Today at the American Hotel and Lodging Association’s The Hospitality Show being held in San Antonio, Texas, Agilysys, Inc. (Nasdaq: AGYS), a leading global provider of hospitality software solutions and services, released the findings of its 2024 Global Hospitality Impact Study: Unlocking Revenue Beyond the Room.

This comprehensive survey of 489 hospitality executives and technology decision-makers across North America, Europe and APAC unveils critical insights into the industry's readiness to embrace Revenue per Available Guest (RevPAG) strategies, while highlighting significant challenges holding back adoption.

The potential of adding RevPAG initiatives to traditional Revenue Per Available Room (RevPAR) measures is reflected in the current trend of travellers seeking personalized and unique experiences, with luxury properties already generating up to 40% of revenue from non-room sources. However, while 82% of hospitality executives are interested in proactively identifying and expanding revenue opportunities at the per-guest level, 56% believe they are unprepared technologically and operationally to do so.

“Properties have a compelling opportunity to lean into growing traveller desires to receive personalized offers and enjoy unique experiences curated just for them. However, technology equipped to identify and serve up these opportunities – whether in advance or real-time during a guest’s stay – is not pervasive,” said Terrie O'Hanlon, Senior Vice President at Agilysys.

“While there is overwhelming interest in capitalizing on RevPAG's potential to drive both revenue growth and guest loyalty, our research reveals a concerning readiness gap,” Ms. O’Hanlon continued. “Properties that fail to bridge this gap not only risk leaving substantial revenue on the table in a promising and expanding market, but also increase the probability they will fall behind new properties and others investing in technology, operating processes and cultural dynamics geared toward understanding revenue potential at the per-guest level,” she warned.

Key findings include:

  • Critical “Aspiration-Reality Gap”: While 82% of hospitality executives recognize the potential of optimizing RevPAG, 56% feel totally unprepared to do so.
  • Technology Transformation Considerations: To enable optimizing RevPAG, 72% of executives are willing to enhance current technology infrastructure, with two-thirds willing to consider switching PMS systems, providers or both.
  • Technology Review Gap: Only 12% of properties review their system capabilities against market innovations multiple times yearly, while 38% wait four or more years between doing so, contributing to blind spots with respect to leveraging new technology to optimize revenue at the per-guest level.
  • Dual Role of Technology: 68% of executives believe property technology must balance day-to-day operations with future innovation needs.
  • Priority Inertia: Most properties have traditional priorities at the head of their day-to-day operating mandates as opposed to having made a shift to putting the ability to identify and optimize per-guest revenue first. While “enhancing guest experiences” is the leading priority at 68%, doing so is not specifically revenue-per-guest focused. Acquiring new guests (67%) and increasing re-bookings (63%) round out the top priorities. While it is true that these advantages can result from optimizing per-guest revenue, cultures have not evolved to make RevPAG a property-wide focus even though there is high agreement (82%) about the value of doing so.

The 2024 Global Hospitality Impact Study highlights the advantages of expanding room-revenue-focused mindsets shaped by RevPAR and Average Daily Rate (ADR) metrics to broader, guest-centric revenue sensibilities. Adding RevPAG goals and capabilities to traditional performance expectations equips properties to capture the full spectrum of guest spending and the added revenue upside derived by tailoring offerings to individual guest desires.

“The path to High Return Hospitality – a state in which financial and emotional returns are optimized by perfectly aligning individual guest desires with property offerings and staff capabilities – becomes easier when hospitality executives broaden how they measure and create value,” noted Ms. O'Hanlon. “RevPAG is not just another metric—it is a reimagining of how properties and brands relate to each guest and monetize the moments that matter most. Properties that undertake this transition will set new standards for delivering personal, profitable guest experiences and for elevating operating advantages,” she concluded.

This study offers a roadmap for hospitality executives to optimize revenue at the per-guest level, elevate guest experiences and stay competitive in the evolving global hospitality market. To access the full report, please visit: https://info.agilysys.com/global-hospitality-impact-study-2024

About Agilysys

Agilysys exclusively delivers state-of-the-art software solutions and services that help organizations achieve High Return Hospitality™ by maximizing Return on Experience (ROE) through interactions that make ‘personal’ profitable. Customers around the world use Agilysys Property Management Systems (PMS), Point-of-Sale (POS) solutions, Food & Beverage Inventory and Procurement (I&P) systems and accompanying hospitality ecosystem solutions to consistently delight guests, retain staff and grow margins. The Agilysys 100% hospitality customer base includes branded and independent hotels; multi-amenity resorts; casinos; property, hotel and resort management companies; cruise lines; corporate dining providers; higher education campus dining providers; food service management companies; hospitals; lifestyle communities; senior living facilities; stadiums; and theme parks. www.agilysys.com

Media Contacts:

Americas: Jen Reeves, 770-810-6007, jennifer.reeves@agilysys.com

Rest of World: Alan Edwards, +44 7795 226163, alan.edwards@agilysys.com or Champion Communications, +44 207 030 3818, agilysys@championcomms.com

Investor Contact:

Jessica Hennessy, Agilysys, Inc., 770-810-6116

jessica.hennessy@agilysys.com or investorrelations@agilysys.com

Source: Agilysys Inc.

FAQ

What percentage of hospitality executives feel unprepared for RevPAG implementation according to Agilysys (AGYS) 2024 study?

According to the study, 56% of hospitality executives feel technologically and operationally unprepared to implement RevPAG strategies.

How many executives are willing to enhance technology infrastructure in the 2024 Agilysys (AGYS) study?

72% of executives expressed willingness to enhance their current technology infrastructure to enable RevPAG optimization.

What percentage of revenue do luxury properties generate from non-room sources according to Agilysys (AGYS)?

According to the study, luxury properties generate up to 40% of revenue from non-room sources.

How often do most properties review their system capabilities according to the 2024 Agilysys (AGYS) study?

Only 12% review capabilities multiple times yearly, while 38% wait four or more years between reviews.

Agilysys, Inc.

NASDAQ:AGYS

AGYS Rankings

AGYS Latest News

AGYS Stock Data

2.90B
27.95M
4.81%
95.21%
2.25%
Software - Application
Services-computer Integrated Systems Design
Link
United States of America
ALPHARETTA