rooms namagement
Discuss and justify the methods used in rooms division to measure financial performance. Critically appraise two common performance measurement tools.
This essay ill critically appraise and discuss two common methods witch are used to measure financial performance in the rooms division department , the two tools that the essay will be based upon are the Average Daily Rate and GOPPAR ( Gross operating profit per available room) the essay will also discuss and justify the methods used in rooms division to measure financial performance
In order for a hotel to accurately measure financial performance they must put in place several tools/methods, many of these do not work unless another is in place alongside it, such as the occupancy and Average daily rate, these tools can benefit the hotel by helping to make up the department budget, forecasting potential and future financial performance. One critical point all hotel must consider when forecasting financial performance is the external factors , these comprise of such factors as , weather , season , national events , politics etc. , being able to effectively evaluate how the factor will affect the hotels occupancy is key in order to accurately management financial performance (Hayes 2011).
Managers within the rooms departments are required to look at department costs and how much profit they are making , they have targets of occupancy and revenue which they must set strategies to achieve, in order to put such a strategy in place they must first no how productive the rooms department is , is it losing REVPAR; ( revenue per available room ) because a room that has not been sold that night has lost its revenue forever for that day, it is important to be able to judge and forecast occupancy to get an accurate account of the hotel financial productivity.
GOPPAR (gross operating profit per available room) takes into consideration REVPAR and also other amounts of revenue which the hotel will acquire due to the sale of the
This essay ill critically appraise and discuss two common methods witch are used to measure financial performance in the rooms division department , the two tools that the essay will be based upon are the Average Daily Rate and GOPPAR ( Gross operating profit per available room) the essay will also discuss and justify the methods used in rooms division to measure financial performance
In order for a hotel to accurately measure financial performance they must put in place several tools/methods, many of these do not work unless another is in place alongside it, such as the occupancy and Average daily rate, these tools can benefit the hotel by helping to make up the department budget, forecasting potential and future financial performance. One critical point all hotel must consider when forecasting financial performance is the external factors , these comprise of such factors as , weather , season , national events , politics etc. , being able to effectively evaluate how the factor will affect the hotels occupancy is key in order to accurately management financial performance (Hayes 2011).
Managers within the rooms departments are required to look at department costs and how much profit they are making , they have targets of occupancy and revenue which they must set strategies to achieve, in order to put such a strategy in place they must first no how productive the rooms department is , is it losing REVPAR; ( revenue per available room ) because a room that has not been sold that night has lost its revenue forever for that day, it is important to be able to judge and forecast occupancy to get an accurate account of the hotel financial productivity.
GOPPAR (gross operating profit per available room) takes into consideration REVPAR and also other amounts of revenue which the hotel will acquire due to the sale of the
Bibliography: Allan. (2012) Revenue management and Hotel operations, 2nd Edition: London. Hayes, D & Miller, A. (2011) Revenue Management for the Hospitality industry, 1st Edition: New Jersey, Wiley and sons. Oren Netzer (2005) The Challenges of Yield Management http://www.imediaconnection.com/content/4976.asp