Kpi and Reporting Definitions for Hospitality

KPI and Reporting definitions for Hospitality IMPORTANT TO NOTE THAT HOSPITALITY INDUSTRY has organized itself  with a specific chart of account & reporting system (known as the Uniform System of accounts for the hospitality industry)  network of consultancy companies gathering actual & precise data for comparison and benchmarking, who have produced a large number of KPI (Key Performance Indicators) These are generally accepted definitions largely shared across the hospitality industry. You may find that in large organisations, some additional specific definitions are used for internal use. For example ACCOR is following as well ARR inclusive of VAT & Taxes, to have a true comparison of what customers pay = marketing aspect. Be careful with accepted definitions, English different from US (rack rate), Tax effect (VAT, Tourist tax, ..)

There’s a business saying: ‘If you can’t measure it, you can’t manage it!’ Real, responsive management needs reliable and truthful figures on which decisions can be based. If there are problems, you can take corrective action quickly. If you are having success, you’ll know to do more of what you’re doing! Good figures also give you a wider understanding of your success – sometimes if it’s a quiet month (when your suppliers are telling you that ‘everyone’s quiet!’) you’ll see that some of your KPIs are actually improving (eg sales per head). The main KPIs are 1) OPERATIONAL KPIs Average Daily Rate or ADR: The number represents the average rental income per occupied room in a given time period. ADR along with the property's occupancy are the foundations for the property's financial performance. The ADR can be calculated by dividing the room revenue by the number of rooms sold. ADR is one of the commonly used financial indicators in hotel industry to measure how well a hotel performs compared to its competitors and itself (year over year). It is common in the hotel industry for the ADR to gradually increase year over year bringing in