An analysis of hotel performance based on MHRA quarterly surveys

Abstract

The long essay sets out to establish an analysis of hotel performance based on the past five years. The author uses Key Performance Indicators compiled in the BOV MHRA Quarterly Surveys to establish trends which appeared in the surveys. The author also tries to find different methods of how hotel performance can be measured and whether these methods can be adopted within the Maltese tourism framework. The analysis based on hotel performance of hotels in Malta is compiled through a careful study of the MHRA surveys which are compiled by Deloitte. Interviews with stakeholders of the surveys such as Deloitte and Hotels are conducted to establish the importance of the survey to the industry and to get an opinion on improvements which need to be carried out on the framework of the survey itself. The general findings of the analysis show that hotel performance was improving steadily in 2007 and 2008 mainly due to the introduction of low cost airlines in Malta. This saw an increase in the number of arrivals to the islands. However 2009 brought about an international financial crisis which left a negative impact on Hotel Performance. The road to recovery started in 2010 following various cost cutting initiatives by managers to reduce costs especially following the increase of fuel. The recovery continued in 2011 with III figures in all Key Performance Indicators increasing in all categories. However these figures have not yet reached levels published in 2008. Findings and research conducted by the author also show that there are other means of how a performance analysis can be conducted. The author shows different methods of how one can establish the performance based on futuristic key performance indicators rather than the traditional past oriented indicators used in the current surveys. Conclusions show that despite the fact that the surveys are used by all stakeholders in the tourism industry, some agree with the author's arguments that the measurements used are past oriented and in today's market, one could easily establish future trends through the gathering of different performance indicators. They also agree that other methods such as the 'comp set' method can be used to better analyse a hotel's performance when compared to its competitors which might not necessarily be in the same category.