RETAIL SUCCESS RESOURCES Pt.2

RETAIL SUCCESS RESOURCES Pt.2

03/29/2023 | 06:47 PM | 2 Min Read

Setting Hotel Retail Goals 

As a hotel owner or manager, it's important to set goals for revenue and profit to measure your success and track your progress. One way to measure revenue is to calculate Revenue Per Occupied Room (RPOR), which is the total revenue divided by the total number of rooms sold. Similarly, to calculate profit, you can subtract the total spend from the total revenue and divide that number by the total revenue. Here's how to calculate and set goals for these two metrics:

1) Calculate Revenue Per Occupied Room.

RPOR = Total Revenue / Total Rooms Sold

Use Last Year’s Numbers to get actuals for goal setting.

The ideal goal should be at least 25% above last year’s average to account for inflation and growth.

If you are above last year’s average for your hotel type, choose a goal between the Average and The Top 10% for your segment.

2) Calculate Current Profit Margin

Profit = (Total Revenue - Total Spend) / Total Revenue

The ideal goal is 55-65% to cover any loss due to theft, expiration, or other shrinkage.

Setting revenue and profit goals is essential for measuring your hotel's success and ensuring long-term growth. By calculating RPOR and profit margin and setting realistic goals based on last year's data, you can create a roadmap for achieving your targets and optimizing your hotel's performance.

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