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  • Revenue Management

  • GOPPAR (Gross Operating Profit Per Available Room) - Best Measurement of Success

  • By Juston Parker, President & CEO, Parker Hospitality Group, Inc.

  • Revenue Management continues to change rapidly. The days of "right room, right person, right price at right time" have long disappeared. So how do you really measure success at the property?

    In the past General Managers looked at occupancy. "We need heads in beds to stay afloat!" was the battle cry in many a property. "If we have people staying with us, we will have paychecks to live by." There was a constant drive for pushing the guest in the door at all cost, filling the beds to capture any revenue possible. Then...GMs realized that they were possibly losing money.

    "ADR, I need some more ADR!" became the new charge for properties. "I have a good asset here and its worth $X per night!" Owners and managers alike loved the ADR. Having a high ADR, or Average Daily Rate, gave you status. The property was doing well and that's all we need to know....but...

    What if we look at how the two mix? "The right, room at the right price at the right time!" was the next mantra of the industry. We need RevPAR, Revenue Per Available Room, "now that will measure success"! Looking at the balance between occupancy and ADR made hotels ...

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Hotel Business Review Revenue Management

Joshua Miller
Natasa Christodoulidou
Jean Francois Mourier
Juston Parker
Brenda Fields
Max Starkov
Tina Stehle
Robert Gilbert
Coming Up In The March Online Hotel Business Review

"Hotel Business Review offers weekly articles for hotel management and operation and discussion on emerging growth markets."
Feature Focus
Hotel Human Resources: The Biggest Challenges
The economic challenges of the past four years have led many hotel companies to re-examine the ways in which they do business and how they deploy talent. In many cases, the work did not go away and fewer people were left to carry on the tasks that had previously been shared among many. As we work our way out of the recession and look forward to a healthier economic environment, there is an understanding that despite recovering business levels, we may never see the return of former staffing levels. This "new norm" of operating with leaner teams has led Human Resources professionals and people managers to look at career development and growth opportunities in a new light. The March Hotel Business Review will take a look at some of the strategies being used by successful hotel brands, and techniques human resource directors are currently exploring.
INSIGHTS FOR INDUSTRY LEADERS BY INDUSTRY LEADERS
"The Four Habits of Highly Effective Human Resources"
By James Bermingham, Vice President, Montage Hotels
"Embassy Suites 'The Circle of Leadership"
By Darci Riesenhuber, Director of Brand Culture, Embassy Suites Hotels
"Applying Consumer Marketing Best Practices to Employee Loyalty"
By Fred Bendana, Executive Director Client Services, Maritz Loyalty & Motivation
"How Incentives are Changing to Keep Existing Staff Motivated?"
By Jim Houran, Partner, HVS Executive Search
PLUS: Mobile Technology - Attracting & Retaining Top Talent - Education - Employee Engagement - Employment Claims & Litigation - Employment Contracts - HR Management.