by Ray Hader | May 1, 2023
Market Penetration Index (MPI) is a key hotel performance metric that measures how a hotel’s occupancy rates compare to those of its competitors. More specifically, it compares a hotel’s average occupancy rate to the average occupancy rate of similar hotels in your...
by Ray Hader | May 1, 2023
Market Segmentation is a necessary element to apply several other hotel revenue management principles. It is useful for identifying different consumer segments in order to customize marketing initiatives to target those groups. One of the more common general examples...
by Ray Hader | May 1, 2023
The Net Profit Ratio is a profitability ratio used by hotel revenue managers to understand profitability after certain costs. It is a KPI that removes taxes to provide a more accurate picture of the relationship between net profits and net sales. A higher net profit...
by Ray Hader | May 1, 2023
Net Revenue Per Available Room (NRevPAR) is a comparison metric similar to RevPAR, but whereas RevPAR looks only at a property’s room revenue, NRevPAR takes into account all net revenues for a hotel or property. Looking at net revenue, moreover, means that NRevPAR...
by Ray Hader | May 1, 2023
Occupancy rate is a hotel KPI that measures the number of rooms occupied in a hotel at a given time, and compares that to the total number of rooms available on the property. It is displayed as a percentage. Occupancy rate highlights how much of the available space in...
