Key figures revenue management - KPI
Discover the most important key figures in hotel revenue management. From occupancy rate and average room rate to RevPAR and profit margin, these metrics allow you to measure and optimize your revenue management performance. Learn how to make informed decisions and increase your revenue and profitability.
The most important key figures in hotel revenue management
In hotel revenue management, there are a variety of metrics that are used to measure and optimize revenue management performance. Here are some of the most important metrics in hotel revenue management:
Occupancy rate: The occupancy rate indicates how many rooms are occupied in relation to the available capacity.
Average room rate (ADR): The average room rate indicates the average price at which rooms are sold.
Revenue per available room (RevPAR): RevPAR is a key metric that indicates total revenue per available room. It takes into account both the occupancy rate and the average room rate.
Profit margin: The profit margin indicates the percentage of sales that remains as profit.
Cost per available room (CPOR): The CPOR indicates how much cost is incurred per available room. It helps to control and optimize costs.
Cancellation rate: The cancellation rate shows the percentage of bookings that are cancelled. It has an impact on capacity planning and control.
Booking lead time: The booking lead time indicates how long in advance bookings are made. It helps in planning and adjusting pricing strategies based on demand forecast.
Elasticity of demand: Elasticity of demand measures how much the demand for hotel rooms changes when the price changes.
Return on Investment (ROI): ROI indicates how effective investments in hotel revenue management are and how much return they generate.
Average length of stay: The average number of nights guests spend at the hotel.
Cost per occupied room: The total cost of the hotel divided by the number of occupied rooms.
Upselling rate: The percentage of guests who purchase an upgrade or additional services.
Contribution margin: The amount contributed to cover fixed costs and generate profit after deducting variable costs per room or customer segment.
Upselling revenue: The additional revenue generated by selling upgrades or additional services.
Cost of customer acquisition: The total cost to acquire a new customer, including marketing expenses, commissions, and distribution costs.
Cost per booking: The cost to generate a booking, including marketing costs, commissions and booking fees.
Cost per guest: The total cost attributable to an individual guest, including room cleaning, staff and service costs.
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