Leveraging Your Key Performance Indicators to Boost Bottom Line

By S. Lakshmi Narasimhan Founder, Ignite Insight LLC | December 14, 2014

Key Performance Indicators or KPIs as they are popularly known as, are a favorite topic in management meetings or in boardroom talk and owner conferences. Everybody likes to wax eloquent about these magical measures that deliver revenues and profits on a consistent basis.

The sad truth though is that these KPIs are grossly misunderstood, vaguely interpreted and abundantly under utilized.

KPIs are often revenue, profit or operation related indexes or measures that play a big part in the business results of a hotel. It is thus important that firstly, these measures are specifically identified and listed for monthly scrutiny and review*. Secondly they must become part of what are known as Management Reports and reviewed thoroughly every month by key personnel.

Hotel KPIs

In the case of a hotel, the 3 Major KPIs one could look at are:
- RevPAR
- Gross Operating Revenues
- Gross Operating Profits

One could argue endlessly and list more KPIs, however, it is a fact that if a hotel is looking to boost bottom line, these three measures would pretty much impact every aspect of that process.

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