Hotel Industry Key Performance Indicators Flashcard

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KPI

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Key Performance Indicator

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What is the formula for calculating occupancy rate?

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Number of occupied rooms / Total number of available rooms

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Which of the following is NOT a KPI mentioned in the text?

Revenue Per Available Room (REVPAR)

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Average Room Rate (ARR)

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Occupancy Rate

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Customer Satisfaction Index (CSI)

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Customer Satisfaction Index (CSI)

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What does REVPAR measure?

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Revenue generated by occupied rooms

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If a hotel has 100 rooms and 60 are occupied, what is the occupancy rate?

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60%

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What is the purpose of using KPIs in organizations?

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To assess how effectively a company is achieving business objectives

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What is the average room rate (ARR) used for?

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To calculate the average rate per available room over time

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Which metric should be used alongside occupancy rate?

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Average Daily Rate (ADR)

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What is the significance of a high occupancy rate?

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It shows efficient use of space

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Room Sold Variation

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The difference between actual and budgeted rooms sold