What is the definition of KPI / Key Performance Indicators in the hotel industry?
KPI is a short form for: Key Performance Indicator
KPI includes a set or ratios and formulas that help compute and point to the routine and development of a hotel accordingly to their plans and actions.
Here are example of series of normal Key Performance Indicators to check and to benchmark performance of diverse departments in a hotel.
Accommodation (Rooms)
- Regular Room Rate
- Bedroom Occupancy Rate
- Revenue per Available Room
- Cost per Occupied Room
- Labour Cost Ratio
Food
- Cost of Sales Ratio
- Gross Profit Ratio
- Average Spend per customer
- Labour Cost Ratio.
Beverage
- Cost of Sales Ratio
- Gross Profit Ratio
- Average Spend per customer
- Labour Cost Ratio.
Profitability
- Operating Profit Ratio
- Net Profit Ratio
Liquidity
- Current Ratio
- Average payment period
- Average collection period.