RevPAR Is Up. Margins Are Down. Bonus Received.
RevPAR is up. Occupancy is up. The STAR report looked good. And then the P&L arrived. Labour costs, OTA commissions, compressing margins — all invisible in the one number everyone is measured on. The metric isn't broken. The incentive structure around it is.
RevPAM. The Metric Your Hotel Should Have Been Using Yesterday
RevPAR tells you how your rooms are performing. It says nothing about your spa, your ballroom, your rooftop bar or your gym sitting empty at €0 per square metre every single day. Here's the metric that measures your whole hotel - and the formula to calculate it yourself in thirty minutes.
The Company That Tells Hotels How They're Doing Has Never Run a Hotel.
The company that tells every hotel in the world how they're performing is a real estate firm worth $16.5 billion. They knew a better metric existed in 2012. Nothing changed.
What Is RGI in Hotels - And Why It's Killing Your Business
Keep using RGI as your sole performance metric. It's working great. Or, if you're an owner or asset manager, here's a tip on how to stress your hotel commercial team.