A key performance indicator can provide revenue managers and hotel owners with valuable information about their business performance. This subsequently has the benefit of allowing them to implement a revenue management strategy, so that they can maximize financial business results. In this post, we look at some of the most widely utilized revenue management KPIs and how they can help you.
Within the hotel industry, revenue management is the practice of selling the right room, to the right guest, at the moment, for the right price, via the right distribution channel, with the best cost efficiency. To calculate your hotel revenue, you need to measure certain KPIs (Key Performance Indicators). Here are the most important KPI formulas for effective hotel revenue management.
Essentially, revenue management KPIs can be described as performance metrics, which help business owners assess their business’s current state and make informed adjustments to things like pricing and strategy. As a result, these KPIs can enable hotel owners to optimize their business practices and maximize revenue.
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