by Ray Hader | May 1, 2023
Operating Profit Ratio is a hotel KPI that measures the relationship between operating profit earned and the net revenue generated by a property which is also labeled net sales. Net sales should include both cash and credit sales. Operating profit should be accounted...
by Ray Hader | May 1, 2023
Price Positioning is a determination of where a hotel’s prices stand in comparison to prices at similar properties. Price positioning can be used to evaluate daily room rates, holiday rate promotions, spa and food and beverage prices, and more. Some of the most common...
by Ray Hader | May 1, 2023
Profit Per Available Room (PROFPAR) is a calculation of hotel profit earnings for each available room on the property. The calculation is made using operating profit, which accounts for changes in room revenue and operating expenses. For hotel owners, PROFPAR is a...
by Ray Hader | May 1, 2023
Rate fences are rules that are applied to specific room rates. They are set by revenue managers to prevent customers who are willing to pay higher amounts from having access to promotions or discounts. From the consumer’s perspective, certain rules will apply to a...
by Ray Hader | May 1, 2023
A Revenue Generation Index (RGI) is a useful metric for comparing hotel revenue to the average RevPAR of the competition. Because it uses RevPAR as its primary KPI, an RGI also accounts for occupancy rates. What is Revenue Generation Index (RGI) For? An RGI is used to...
