14 Metrics Your Hospitality BI Should Always Deliver


Hospitality Business Intelligence

Modern hospitality is highly competitive with very tight margins. To attract and retain guests and still be compliant with local laws, significant amounts are spent to build, upgrade and maintain properties. During peak occupancy, wear and tear is higher, staffing is higher, risks are higher and once capacity bookings are reached, no more revenue can be earned.

However, peaks are never as long as dips, and fighting for margin to ensure a profitable property overall means finding efficiency in every part of the operation. Average hoteliers use Business Intelligence to make decisions that improve performance. A great hospitality business lives by their Business Intelligence feedback. The following is a list of key KPI’s are top of mind for many GM’s and owners.

Revenue: (Actual and Forecast)

• GOPPAR (Gross Operating Profit Per Available Room)

Gross Operating Profit (GOP) / Number of Available Rooms

• NREVPAR (Net Revenue Per Available Room)

(Room Revenue – Distribution Costs) / Number of Available Rooms

• TREVPAR (Total Revenue Per Available Room)

Total Revenue* / Total Available Rooms (*Total Revenue = Accommodation + Breakfast + Spa + Bar + Mini Bar +[Any other extra revenue])

Sales and Marketing:

• MCPB (marketing cost per booking)

= actual production vs the cost of each Sales channel

• Revenue variance from target (by market segment)

• Sentiment score on TripAdvisor

• DRR (direct revenue ratio) percentage of online revenue coming in directly vs third-party sources like OTAs (could be costly)

• RevPar Index vs Compset

• Website conversion rate (from unique visitor to converted bookings)

Other traditional but valuable:

• Online Rating (same as Trip Advisor Sentiment score but more wide spread)

• Occupancy %

= Rooms Occupied / Rooms Available

• ADR – Average Daily Rate

= Total Room Reevenu / Total Rooms Occupied

• Customer Satisfaction (Survey / Guest Questionnaire results)

• Advertising performance and ROI by channel

Having instant access to these and the ability to add and modify the reports to include these and other metrics at various levels is critical to a good BI strategy.

Triatin’s Augmented Business Intelligence tool ABBIE combines data from your internal property management, financial and other systems with data from external sources like the web to deliver these insights in a simple analytics window, and for way less of that precious margin than you may think.

Using historical data and future event data we even calculate optimum pricing strategies, revenue forecast and cost expectations. A ‘forward looking’ balance sheet.