What are sales indicators? give working examples of these concepts with respect to the hotel industry.?

Question

What are sales indicators? give working examples of these concepts with respect to the hotel industry.?

Answer 1

Sales indicators are those things that tell us how good or bad your product or service will sell. In the hotel industry there are several really good indicators of how well the business will do. (This BTW is called a projection)

One really good indicator for the hotel industry is the price of gas. When gas prices are high (as they are now) then people tend not to travel and especially not on vacation thus fewer people needing a hotel to stay at.

Another good indicator is the unemployment rate. High unemployment also means fewer people traveling on vacation.

Another good indicator is the overall economy. Even when gas prices were good there were still times when the economy was bad and that meant fewer people on vacation.

Recession is also a good indicator. People travel less even when the fear of losing their job is lurking in the background.

Price wars are another good indicator. When you see the other hotels dropping their prices it means they need customers badly and are willing to lower prices as a come-on.

I hope this helped answer your question.

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