KPIs Prepared for Hotel and Inn Management Professionals
KPIs are employed by organizations to keep a track of the direction it is heading into. These can be formulated in various areas, which are of significant value to the business.
Financial Perspective generally forms a part of the BSC (Balanced scorecard) and with regard to hotel management the others may relate to Customer perspective, Efficiency and Staff perspective.
Financial Perspective is to keep the organization running, in monetary terms. It can be obtained by using parameters like wage costs as a % of sales, annual operating profit per room, , food costs as a percentage of food sales and % increase in labor costs.
Customer Perspective is to have a means to know how the organization is faring in terms of providing value to the end-users. The indicators hat can help are number of feedbacks, number of complaints received, response rate and frequent customers as a % of total customers.
Efficiency can be judged from % of room booked through reservation channels, internet bookings, rate of room occupancy, rate of sales inquiry conversion and average length of stay.
Staff Perspective is yet another ingredient that deserves consideration. Staff turnover, technological competence of staff, average length of employment and number of training sessions are the indicators that can be used to derive the organizational picture from the view point of the staff.
Why do business professionals choose ready-to-use KPIs?
Read Why do business professionals choose ready-to-use KPIs? to find out the answers to these questions:
- Can a business professional research KPIs on his own?
- How do I avoid typical problems with KPIs?
- Is ready-to-use KPI applicable in my niche?
- Is KPIs' price affordable?
- Can KPIs can be easily integrated in any business environment?
- How can KPIs make the difference to the business?
What are the benefits of Hotel Management metric:
- Management of hotel implies use of a wide range of metrics, from purely financial KPIs like revenue per room or total revenue to customer satisfaction.
- Hotel managers are advised to measure room occupancy rate and financial implications of leaving rooms vacant.
- Housekeeping and cleaning KPI should not be underestimated. It's possible to considerably cut costs.
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More ideas on using Hotel Management KPI
Hotels form a major chunk of a nation's hospitality industry. People visiting a given country from other lands get a glimpse of the standard of living managed by the residents through the services provided by hotels housed there.
Such a reality makes it important to effectively manage the operations of hotels. People have often utilized Balanced Scorecard for achieving this aim. This management strategy rests on the fact that both financial and non-financial indicators create an apt mix to be used for gauging the performance of a process or an organization. Actual usage involves setting metrics 'that count' for appropriate assessment of the way in which management is heading. Such a 'calculative' mode of proceeding eliminates the often 'subjective and qualitative issues' that tend to creep into the picture, sooner or later.
Some of the areas that can be looked into relate to 'financial', 'customer', 'internal operations' and 'learning and growth', when it comes to managing hotels.
By constructing such a tool to reflect the 'way things have been going on' in the place, it is possible to improve the processes and ensure that growth prospects are laid in concrete and real manner rather than shaping castles in air. In all, fruitful management of hotels can be accomplished with BSC.
More useful information for Estate Evaluation
Hotel Management Estimation Balanced Scoreboard Screenshots
Metrics for Estate Evaluation
This is the actual scorecard with Hotel Management Indicators and performance indicators.
The performance indicators include: financial perspective, wage costs as a % of total sales, annual operating profit per room, food cost as a % of food sales, % increase in labor costs, customer perspective, number of positive feedbacks, number of complaints received, response rate, frequent customers as a % of total customers, efficiency, % of room booked through reservation channels, internet bookings, room occupancy, rate of sales inquiry conversion, average length of stay, staff perspective, staff turnover, technological competence of staff, average length of employment, number of training sessions.
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