Are KPIs only for Revenue Management?
KPIs or hotel performance indicators are necessary to measure the performance of a hotel facility.
The effective and constant monitoring of the KPIs allows the Hotel to apply and control the Revenue Management strategy, but not only. KPIs are also Oil And Gas Email List fundamental for the control and monitoring of Digital Marketing activities and for the Campaigns to be implemented!
Despite the importance of KPIs, there are many hotels in Italy that neglect the measurement of these indicators.
I KPI in breve
We can distinguish KPIs into 3 broad categories :
employment and turnover indicators ;
cost indicators ;
market indicators .
EMPLOYMENT AND TURNOVER INDICATORS
There are mainly 6 indicators of employment and turnover :
occupancy → employment rate;
ADR → average sales rate;
RMC → average revenue per room;
RevPar → average revenue per room;
GOP → EBITDA;
Goppar → gross operating margin for each available room.
COST INDICATORS
When we talk about cost indicators we talk about CostPAR. The CostPAR indicates the costs that we will bear for each available room, therefore the average cost per room.
CostPAR increases with hotel occupancy as variable or marginal costs grow as more rooms are sold.
MARKET INDICATORS
These indicators are essential for analyzing the reference market and the performance of the hotel compared to its competitors.
The most important market indicators are:
fair share → To obtain this index we must add the total available rooms of the hotel in question to those of the entire competitive set. We then SG Phone List multiply by the opening days of the structures in question, the total represented as a percentage will give us back the potential of stays of that reference market;
market share → it is a dynamic index based on rooms sold and therefore occupancy. This indicator is calculated by comparing the percentage of rooms sold by our hotel with the total number of rooms sold by all hotels in the same competitive set;
