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Hospitality Marketing Metrics
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Average Daily Rate (ADR)
The average rental income per paid occupied room in a given time period. Significance: Measures pricing effectiveness and helps in pricing strategy decisions.
Occupancy Rate
The ratio of rented or used space compared to the total number of available rooms. Significance: Indicates the utilization of available rooms and demand level.
Revenue Per Available Room (RevPAR)
A metric that calculates the total room revenue divided by the total number of available rooms. Significance: Combines occupancy and ADR to understand overall performance.
Average Length of Stay (ALOS)
The average number of days guests stay at a hotel. Significance: Useful for revenue management and forecasting demand.
Guest Satisfaction Score (GSS)
A measure of the satisfaction level of guests based on surveys and reviews. Significance: Affects customer loyalty and repeat business.
Cost per Occupied Room (CPOR)
The average cost associated with providing service to a sold room. Significance: Helps in identifying profitability and areas for cost reduction.
Total Revenue Per Available Room (TRevPAR)
The total revenue generated per available room, accounting for all services. Significance: Provides a more comprehensive view of a facility's financial performance than RevPAR.
Market Penetration Index (MPI)
A measure to assess a hotel's share of the market compared to a defined competitive set. Significance: Assists in evaluating marketing effectiveness and competitive position.
Customer Acquisition Cost (CAC)
The cost associated with acquiring a new customer. Significance: Essential for evaluating the effectiveness of marketing strategies and budget allocation.
Trip Advisor Rating
A user-generated rating score on the Trip Advisor platform. Significance: Influences potential customers' booking decisions and perceptions.
Booking Conversion Rate
The percentage of visitors who book a room after visiting a hotel's website. Significance: Indicates the effectiveness of the website's design and booking process.
Net Promoter Score (NPS)
A metric that measures customer loyalty and likelihood of recommending the service. Significance: Gauges customer satisfaction and potential for word-of-mouth promotion.
Gross Operating Profit Per Available Room (GOPPAR)
The total revenue less operating expenses, divided by the total number of available rooms. Significance: Reflects the ability to convert revenue into profit.
Channel Mix
The distribution of reservations made across different booking channels. Significance: Important for optimizing distribution strategy and reducing dependency on expensive channels.
Revenue Generation Index (RGI)
A comparison of a hotel’s RevPAR to its competitive set's aggregated RevPAR. Significance: Indicates if a hotel is gaining its fair share of revenue within the market.
Online Reputation Management (ORM) Score
A measure of the overall online reputation of a hotel based on reviews and ratings. Significance: Can impact booking decisions and overall brand image.
Group Pickup
The number of group room nights realized versus the number that was blocked or committed. Significance: Measures success in attracting and retaining group business.
No-show Rate
The percentage of guests who do not arrive for their reservation without cancellation. Significance: Impacts revenue management and room availability.
Bounce Rate
The percentage of website visitors who leave the site without viewing other pages. Significance: Indicates potential issues with site content, structure, or usability.
Yield
The percentage of total possible revenue actually realized. Significance: Reflects success in applying revenue management practices and pricing strategies.
Beverage Cost Percentage
The cost of the beverages sold divided by the beverage sales. Significance: Helps in controlling beverage costs and pricing decisions in the F&B department.
Food Cost Percentage
The ratio of the cost of food sold to the revenue generated from food sales. Significance: Indicates how well the F&B department is managing its food costs.
Lost Business Reason
The explanation for why a potential booking did not materialize. Significance: Understanding these reasons can inform service improvements and strategic changes.
Customer Lifetime Value (CLV)
The total revenue expected from a customer over the course of their relationship with the company. Significance: Helps assess long-term profitability of customer relationships.
Social Media Engagement Rate
A metric that reflects the level of interaction (likes, shares, comments) with a brand's social media content. Significance: Indicates brand popularity and effectiveness of social content.
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