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.
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
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,
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
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.
Within the hotel industry, revenue management and yield management are two of the most useful tools available to managers, allowing them to maximise the amount of money they make from guests. Although the two concepts are closely linked and share a lot of similarities, there are some important differences too. In this blog post, we explain the differences and compare
Revenue management within the hospitality industry involves predicting consumer demand, in order to optimise the sales process, allowing businesses to sell at the right price, to the right customer, at the right time. In a hotel, this may mean turning away business now, in order to do more profitable business tomorrow. When carried out correctly, revenue management can be extremely
Revenue management is an extremely important concept within the hospitality industry, because it allows hotel owners to anticipate demand and optimise availability and pricing, in order to achieve the best possible financial results. In this article, we will answer the question of 'what is revenue management?' and explain the importance of adopting a revenue management strategy of your own. Defining
Within the hotel industry, the concept of revenue management involves optimising the price and availability of rooms and services, based on the use of analytics which predict consumer behaviour, in order to maximise revenue. It can be an extremely effective discipline, but specialist knowledge is required to make the most of it. For this reason, many hotel managers opt to
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