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 purpose of revenue management. In this article we explain what GOPPAR stands for and why it is important. GOPPAR Explained GOPPAR is an acronym, which stands for gross operating profit per available room, and this is a commonly used key
Forecasting is an important part of any revenue management strategy, because it allows hotel managers to make vital decisions regarding pricing, promotion and distribution, based on anticipated demand and performance. In this article, we look at some useful forecasting tips, which can help you to improve your revenue management strategy. What is Revenue Management? Within the hotel industry, revenue management can be defined as selling the right room to the right client, at the right moment, for the right price, through the right distribution channel, with the best cost efficiency. As a business practice, it is primarily concerned with optimising
For hotel owners looking to grow their business, a robust revenue management strategy is of the utmost importance, helping to optimise business results. However, under the broader revenue management umbrella, there are many smaller strategies that can help to facilitate growth. In this article you find nine revenue management strategies that those in the hotel industry can employ to achieve this ultimate objective. What is Revenue Management? Revenue management is a popular concept within the hotel industry, and is used to optimise a hotel or resort's financial results by maximising revenue. The accepted definition is: selling the right hotel room,
Revenue management is concerned with optimising financial results and is especially popular in industries like hospitality, which must contend with high fixed costs and a perishable inventory. For example, hotels have a certain number of rooms and fixed costs which must be met, regardless of how many rooms are sold. In such industries, revenue management is employed in an effort to predict demand and optimise inventory and price availability. When utilised correctly, this will ultimately result in higher revenue. History of revenue management The history of revenue management can be traced back to the 1980s, originating in the airlines industry.