February 21, 2012

How to measure your Hotel Performance Efficiency?

How can you measure the results of your sales and revenue management strategy at your hotel or hotel apartment? Which Key Performance Indicator (KPI) should you us at your property?

KPI s a regular benchmark for large hotel chains, while for Independent Hotels it mainly come from a Financial Controller or Hotel Manager's initiatives. Every hotelier involve in Head of Departments position should have an understanding of the below.

Here are some KPI to measure the results of your hotel revenue management strategy?

  1. REVPAR- Room Revenue per available room
  2. TREVPAR - Total Room Revenue per available room (Rooms + F&B + Other Income)
  3. GOPAR - Gross Operating Profit per Available Room
  4. REVPAM - Conference and Events Revenue per available square meters
  5. REVPASH - Food and Beverage Revenue per Available Seat per Hours
  6. REVPAT - Spa Revenue per available treatment room 
Which metrics do you look at on a daily basis? How do you compare the figures? (Manual inputs via telephone operator exchange or online benchmarking daily input). Do you measure RevPAR and GOPPAR on a daily basis?

Which persons in the hotel accounts for analyzing those metrics? Director of Sales, Front Office Manager, Revenue Manager, Financial Controller, F&B Manager, Spa Manager, Hotel Manager...

If you don't measure any of the above, you can not realistically assess your performance neither for your hotel property or with the market competitors.

Maxime @ RSVP-Hospitality

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