Hotel KPI

Concept and meaning

KPIs are indicators that help measure the success or failure of a company in specific areas. KPIs can be defined in a variety of ways, but generally speaking, they are numbers that measure a company's progress toward a specific goal or strategy. In the hotel industry, there are many different KPI's that can be used to measure the success or failure of a hotel.

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Why are KPIs important?

It's important that you know which KPI (Key Performance Indicators) are relevant for your hotel. This is the only way you can ensure that you run your hotel effectively and efficiently.

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But before we start with how you can create your own hotel metrics, let's first ask ourselves the question: Why are KPIs important anyway? The answer is simple: KPIs are important because they help you measure your hotel's performance. They tell you whether your hotel is successful or not. But that's not the end of the benefits of KPI. These indicators also help you identify and fix weak points in your hotel. They can also help you achieve your hotel's goals.

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How to create your own hotel key figures

Now that you know why KPIs are so important, let's start with how you can create your own.

There is no right or wrong way to build a KPI. The only important thing is that you choose the ones that are relevant to you and your hotel. So first, you should consider which aspects of your hotel you would like to measure. For example, do you want to measure sales? Or the number of bookings? Or guest satisfaction? Once you know what you're looking for, you can start creating your KPI.

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If you're unsure where to start, you can always take a look at the key figures for other hotels. They can provide you with good orientation and provide you with ideas. But remember: What works for other hotels doesn't necessarily have to work for your hotel as well. So find out which KPI is best for you and your hotel. To help you get started, here are a few examples of possible key figures for hotels:

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— Revenue per available room (RevPAR)
— Average daily rate (ADR)
— Ocupancy rate
— Number of bookings per month
— Number of cancellations per month
— Average length of stay of guests (Average length of stay, ALOS)
— Average tip per guest
— online reviews

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How to improve your hotel KPI

1. Focus on your strengths
Each hotel has its own strengths and priorities. When you know which areas of your hotel are doing the most well, you can focus on them and focus your efforts on further improving those areas. This will help you improve your overall performance and get better results in terms of your KPI.

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2. Stay up to date
The hotel industry is a fast-moving business and it's important that you keep your finger on the pulse. This means that you should be regularly informed about the latest trends and developments in the industry. If you know what's going on in the industry, you can better decide how you should position and market your hotel. In this way, you can ensure that your hotel is always attractive to potential guests.

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3. Check your numbers regularly
It's important to check your numbers regularly to make sure you're on track. This means that you should keep a close eye on your sales figures. If you notice that your sales are stagnating or declining, you need to investigate why this is the case. It can often be helpful to call in external consultants to get an objective look at your figures and find solutions to any problems you may have.

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4. Listen to your guests
Your guests are one of the most important indicators of success or failure of your hotel. That's why it's important that you hear their opinion and try to understand their needs. You can do this in a variety of ways, such as by regularly conducting surveys or talking to guests in person. If you know what your guests need and want, you can plan accordingly and make sure they're happy. Happy guests are likely to come back and recommend their hotel — which means you can generate more revenue.

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