Revenue Management KPI’s

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The Most Used Revenue Management KPI’s for Hotels


A key performance indicator can provide revenue managers and hotel owners with valuable information about the performance of their business. This subsequently has the benefit of allowing them to implement a revenue management strategy, so that they can maximise financial business results. In this post, we look at some of the most widely utilised revenue management KPI’s and how they

The Most Used Revenue Management KPI’s for Hotels2020-06-20T14:20:17+02:00

What does GOPPAR stand for?


A key performance indicator, or KPI, is a quantifiable measurement of business performance. The use of KPIs is essential for implementing a successful revenue management strategy, as it allows businesses to identify areas of success and failure, as well as trends related to demand and customer behaviour. GOPPAR is one of the most important KPI used by hotels for the

What does GOPPAR stand for?2020-06-20T14:21:24+02:00

What is RevPOR?


Revenue per occupied room, also known as RevPOR, is a KPI used within hotel management to assess financial performance. As a result, it can play a role in a revenue management strategy. Its main value to hotel owners is in giving them an idea of exactly how much revenue they are making from the rooms that they manage to sell.

What is RevPOR?2020-06-20T14:23:01+02:00

What is RevPAR?


Revenue per available room, or RevPAR as it is usually shortened to, is a KPI used within the hotel industry in order to assess financial and business performance. As a metric, it is concerned with both room revenue and occupancy rate, which makes it an important indicator of the overall performance of a hotel, as well as a useful component

What is RevPAR?2020-06-20T14:23:11+02:00

What is an Average Daily Rate (ADR)?


Average daily rate (ADR) is a KPI which is commonly used for revenue management within the hotel industry. The primary value of ADR, as a metric, is its ability to reveal the average rental income connected to occupied rooms each day, which is valuable for revenue management. It can, therefore, give hotel owners an idea of their current operating performance,

What is an Average Daily Rate (ADR)?2020-06-20T14:24:08+02:00

Hotel KPI’s explained: ADR, REVPAR and GOPPAR


Revenue management is a data-driven approach to predicting customer behaviour, with a view to optimising product pricing and availability, in order to maximise revenue. It is especially useful in the hotel industry, because hotels have a limited number of rooms available and experience varying levels of demand. When carrying out a revenue management strategy, there are a number of key

Hotel KPI’s explained: ADR, REVPAR and GOPPAR2020-06-20T14:24:19+02:00

What is an Occupancy Rate?


Occupancy rate is a KPI used by those within the hotel industry to assess the performance of a hotel. As a metric, it is concerned with the percentage of a hotel that is occupied and can be used alongside other KPI’s, such as ADR (average daily rate) and RevPAR (revenue per available room) as part of a revenue management strategy.

What is an Occupancy Rate?2020-06-20T14:24:38+02:00

What does EBITDA stand for?


Earnings before interest, taxes, depreciation and amortization, or EBITDA for short, is a KPI that is becoming increasingly prevalent in hotel management. Sometimes referred to as operational cash flow, the metric can be used to determine the operational profitability of a business, taking into account only its key daily running costs. Why is EBITDA Important? EBITDA has emerged as an

What does EBITDA stand for?2020-06-20T14:28:08+02:00

NRevPAR Clearly Explained!


Net revenue per available room, or NRevPAR, is used by those within the hotel industry as part of a wider revenue management strategy, helping them to assess overall business performance. As a KPI, the NRevPAR metric is similar to RevPAR, but factors in distribution costs. Therefore, it is arguably a more accurate performance indicator. What is NRevPAR? The NRevPAR metric

NRevPAR Clearly Explained!2020-06-20T14:31:36+02:00

What is ARPA?


Average revenue per account, or ARPA, is a KPI used in the hotel industry for revenue management purposes. The metric tells hotel owners the amount of revenue generated, on average, per customer account. As a result, it is a good indicator of business performance. The metric is sometimes known as average revenue per user. What does ARPA stand for? ARPA,

What is ARPA?2020-06-20T14:32:02+02:00
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