There are many KPI indicators to measure hotel operations, but six commonly used indicators are occupancy rate (OCC)

How do you use kpis?

There are many KPI indicators to measure hotel operations, outcall massage hong kong but six commonly used indicators are occupancy rate (OCC), average available room rate (REVPAR), operating gross profit (GOP), operating net profit (NOP), guest satisfaction (GSS) and employee satisfaction (ESS). These common hotel KPIs are explained as follows:

Occupancy rate: The number of rooms a hotel rents over a period of time divided by the total number of rooms. outcall massage services Measure room demand, availability and performance. Occupancy is only a number and does not reflect the relationship between the average price and the number of units sold, so it is not a definitive indicator. Frankly, selling rooms at below-market rates is bound to increase occupancy, which comes at the expense of profits and is not a healthy indicator.

REVPAR(Revenue per Available Room): refers to the average revenue generated per available room over a period of time. Reflect the income level of the room. The formula is: occupancy rate x average room rate. Compared with the occupancy rate, this indicator more objectively reflects the operation of the hotel. REVPAR is high only if occupancy and average room rates are high.

Gross Operating Profit (GOP) : The gross operating profit refers to the profit and loss of the operating income after deducting the operating environment costs such as rent, labor and materials. The main purpose of this important indicator analysis is to measure the working capital benefit of the hotel, and to examine the level of the performance management of the hotel development, operation and service team.

NOP (Net Operating Profit) refers to the hotel's net operating profit (GOP) less depreciation and partnership tax total operating profit, used to measure the hotel's net profit performance. Some are the return on investment for hotel investors. The higher the NOP value, the lower the NOP value. The lower the NOP value, the higher the NOP value. The lower the NOP value, the higher the NOP value.

Guest Satisfaction score: Used to evaluate the satisfaction of guests after the completion of the stay, which can be scored by means of questionnaires. In general, many large chain hotel groups have their own guest satisfaction survey system, you can intuitively see the customer satisfaction of their own hotel. For small hotels or individual hotels, when there is no condition to build their own guest satisfaction survey system, more reference to the feedback of guests on the online booking platform. Compared with the hotel management group's own survey system, this kind of feedback has the characteristics of great public influence. Hotels with high reviews are naturally more favored by guests, but the evaluation of the platform is also a double-edged sword, because good and bad reviews will be displayed on the platform. Moreover, some guest evaluations cannot be objective and fair, for example, hotel staff will require guests to "like" for their own interests, and guests will threaten the hotel with bad reviews. So it's only for reference.

Employee Satisfaction Score: A questionnaire used to measure employee satisfaction and happiness at work. Employee satisfaction is an important key performance indicator in the management system of large hotel groups, whose purpose is to measure and evaluate the happiness and satisfaction of employees. Often through questionnaires or surveys to understand the employee in the work environment, treatment, guidance and management of various aspects of satisfaction. The questionnaire includes but is not limited to job interest, income satisfaction, communication between superiors and subordinates, training opportunities, and work pressure. It is usually measured once a year. A good employee satisfaction survey can make hotel managers fully understand the psychological status of employees and provide factual support for adjusting management countermeasures.

These KPIs are important indicators to measure a hotel's performance and management quality.

In addition to the above six indicators, we also have two important indicators that can be incorporated into the KPI assessment management system, namely quality inspection (QA) and EBITA.

Hotel Quality inspection (QA) is the inspection of the hotel's operating facilities and service quality in accordance with the hotel's brand standards and related rules and regulations, usually covering at least the following main aspects:

Room service quality: bed cleanliness, home rental intact degree, the number of living and learning supplies and the use of this situation.

Public health: hygienic conditions and cleanliness of halls, restaurants and gyms.

Equipment and facilities: the operation of elevators, air conditioning, water supply and other equipment and facilities, whether the normal operation, WiFi network quality.

Food and beverage quality: food selection, workmanship, temperature, hygiene.

Employee image: Employee appearance cleanliness, attitude and service quality.

Safety protection: implementation of emergency plans, fire protection measures and monitoring facilities.

Quality checks are usually conducted annually, and some hotels incorporate the results of this work into their KPIs, while others do not.

EBITA stands for Earnings before Interest, Taxes and Amortization and can be translated as earnings before Interest, Taxes and amortization. EBITA is a financial measure commonly used to measure a company's profitability. Compared to NOP, EBITA further excludes amortization items and can better reflect a company's recurring profitability and more accurately analyze long-term trends in the company's performance. The calculation method is as follows:

Operating Income - Cost of operating hours - Administrative expenses - Distribution enterprise expenses = operation profit - amortization expense = EBITA

Operating profit represents net profit before interest, taxes and amortization. Amortized costs include depreciation charges and amortization of intangible assets such as goodwill.