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Key Performance Indicators (KPIs) for Hotels
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Occupancy Rate
The Occupancy Rate is a measure of the percentage of available rooms that are filled with guests. It is important for hotel management because it indicates the hotel's ability to attract guests and its overall usage rate.
Average Daily Rate (ADR)
ADR represents the average rental income per paid occupied room in a given time period. It is crucial for hotel management to evaluate pricing strategies and understand the property's financial performance.
Revenue Per Available Room (RevPAR)
RevPAR combines both occupancy and ADR to understand the revenue generated per available room. It helps hotel management balance pricing and occupancy for maximum revenue.
Gross Operating Profit Per Available Room (GOPPAR)
GOPPAR measures the total operating profit of the hotel per available room. It is an important profitability KPI, providing insight into the hotel's operational efficiency.
Total Revenue Per Available Room (TRevPAR)
TRevPAR is a measure of the total revenue generated per available room, including ancillary revenue. It is important for hotel management because it gives a complete picture of a hotel's revenue-generating capability.
Net Promoter Score (NPS)
NPS gauges customer loyalty by measuring the likelihood of guests to recommend the hotel to others. It is important as it reflects guest satisfaction and the hotel's potential for repeat business.
Cost Per Occupied Room (CPOR)
CPOR indicates the average cost of servicing a room. Hotel management uses CPOR to control costs and maintain profitability.
Employee Satisfaction Score
This score reflects employees' happiness and engagement at work. High employee satisfaction is crucial for hotel management as it leads to better customer service and reduces turnover.
Market Penetration Index (MPI)
MPI measures a hotel’s market share relative to its competitive set. It's important as it helps hotel management to understand their position in the market and make strategic decisions accordingly.
Return on Investment (ROI)
ROI calculates the financial return on investments made in the hotel. It helps management evaluate the efficiency of their investments and make informed financial decisions.
Customer Satisfaction Index (CSI)
CSI measures the degree of satisfaction that guests have with the hotel's service and facilities. It is important for maintaining service quality and the hotel's reputation.
Energy Consumption Per Occupied Room
This KPI tracks the amount of energy used per room and is an indicator of the hotel's environmental footprint and operational efficiency.
Average Length of Stay (ALOS)
ALOS calculates the average time guests spend at a hotel during each visit. It helps in understanding guest behavior and in managing inventory and staffing.
Food & Beverage Revenue Per Occupied Room (F&B RevPOR)
F&B RevPOR indicates the average revenue earned from food and beverage per occupied room and helps in assessing the performance and contribution of the F&B department.
Maintenance Cost Per Room
This KPI represents the average cost spent on maintaining each room in the hotel. It's essential for budgeting and maintaining high standards for guest experience.
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