Tag: KPI

Measuring Efficiency With Hotel Management Indicator

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Hotel managers have the heavy task of supervising the entire hotel which includes a great deal of activities including hotel administration, marketing, accounts, housekeeping, and management of food and beverage, catering and preservation and front office supervision. With all the tasks assigned to you, you will definitely need all the help you can get from your employees as well as the hotel management tools that you can find. Among those that can aid you here is the hotel management indicator. This is better known as the hotel KPI or the key performance indicator, which assists managers in determining which processes are doing well and which are not. Aside from that, this keeps track of the efficiency of the employees, the behavior of the customers and the productivity of the hospitality business.

The hotel business world is a competitive arena so you cannot afford to let your guard down. One day, your rivals might come up with an idea that will take your clients away from you. Thus, you should always put your best foot forward especially when making decisions. You cannot make the right choices if you do not have the information wherein you will be basing your judgments upon. This is why you need the hotel management indicator.

There are hundreds and thousands of manage hotel performance indicators that you can use as of today. Depending upon your goals, your main focus and your strategy, you should be able to narrow down the number of your hotel KPI into five or less. This way, it will be easier for you to monitor the health of your company through the use of the hotel management indicator. For instance, if your main goal is to measure the efficiency of your hotel revenue management scheme, you can utilize indicators such as the REVPAR (room revenue per available room), the total revenue per available room or TREVPAR, the total profit per customer, the gross operating profit for every available room, the REVPAM which is also known as the revenue acquired from conference and banqueting per available square meter and REVPASH that pertains to the revenue from the food and beverage for every available seat and hour.

Now if your main concern is the staff or the employment, there are a number of manage hotel performance indicators that you can exploit including the percentage of wage cost, the percentage of the total labor cost, the total labor hours and the sick days of leave taken by the employees. Another example is when you have an onsite restaurant. You can use hotel management indicator like the total sales for every customers, the number of customers per day, the seating efficiency, the basket analysis and even the strike rate.

The results that you have obtained upon monitoring the performance of your hotel through the use of the KPIs can be used to make smart decisions. You can also utilize them to improve your performance and avoid problems in the future because of early detection. Compete in this cutthroat hotel business world with the confidence that will aid you in vying for reputation and prominence.

A Guide On Managing Hotels Kpi

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KPI management is as important as implementation process of Balanced Scorecard. Sure thing, the choice of the right key performance indicators and development of the right strategy is vital for BSC success. At the same time maintenance of Balanced Scorecard and management of key performance indicators is a critical success factor for efficient use of Balanced Scorecard. By the way, improper management of key performance indicators is one of the most common mistakes in implementation and maintenance of Balanced Scorecard. Just having a set of key performance indicators is not enough. It is necessary to adequately measure them, exchange obtained information between different managerial levels, as well as use evaluation results in decision making and strategy revision. This also concerns hotel Balanced Scorecard. Hotel industry is known as being extremely competitive. Indeed, there is no lack of options when looking for the hotel to spend the night there or the entire vacations. Hotels are eager to use
Balanced Scorecard since this system can certainly help transform strategic plans into real actions. This is only possible if all rules and norms of Balanced Scorecard maintenance and KPIs management are observed.

As known, Balanced Scorecard consists of four categories: financial, customer, internal business processes, learning and growth. What makes Balanced Scorecard unique? Unlike similar performance evaluation systems of Balanced Scorecard evaluates nonfinancial indicators as well. In terms of a hotel industry these indicators refer to customer satisfaction, improvement of hotel personnel professional level, optimization of internal processes, for example laundry, dining services, housekeeping and cleaning, reception services etc.

No less imagine such a situation hotel top managers have developed a strategy and selected a set of key performance indicators that fall into the above mentioned four categories. Now is the time to start using Balanced Scorecard and evaluate the selected KPIs. It needs mentioning that key performance indicators should be measurable and understood. As time passes by the first results are obtained. This is perhaps the most important stage since top managers have to find out whether are not they have made the right choice and assigned the right weights for indicators. For instance, such a key performance indicator as room occupancy may not matter much as visitors tend to stay for more than three days in a hotel and maintenance of vacant rooms requires little expenses. This is just a hypothetical example.

Having obtained the first results, top management needs to analyze them. KPI evaluation results show progress or regress of a hotel on its way to implement strategic goals. Thus, hotel managers and owners locate problematic areas and make decisions as to necessary improvements. For instance, if your kitchen performance prevents hotel from optimize an overall performance, relevant decisions need to be made (e.g. hiring new chef, changing food supplier etc.). Balanced Scorecard will work only in case the information it provides is actually used to initiate changes. Balanced Scorecard will not change the situation by itself but rather offer important and valuable information for top managers and business owners.

Know Whats Really Happening With Hotel Kpi

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Managing hotels is very challenging especially when it comes to making the right decisions. If you are the hotel manager, you have a lot of tasks to perform including overseeing the daily operations, the behavior of the staff and even the appearance of your hotel. There are also managers who are given the responsibility of negotiating the contracts with the suppliers such as the maintenance tools and such. In addition to that, they are the ones who take care of the leases and even the upgrades that should be done on the hotel. Therefore, being a hotel manager is not only about skill and experience; you have to have the determination and the right attitude that will aid you in finishing all the duties that have been assigned to you. Now, you can make your job easier with the help of the hotel KPI.

The hotel KPI or the key performance indicators for hotel chains have been used by various hospitality businesses such as inns, lodges, motels and extended stay hotels. The KPIs are used in order for the managers to know what is happening within the hotel as well as the outside factors including the customers. The indicators take on four different aspects. The first one is the financial aspect of the company. We all know this is very important in the hotel business just like in other commercial endeavors. Your company will never be considered successful unless you are profitable. You will need the cash flow reports so that you can invest well on different things such as hotel improvement and aesthetics.

The second one is the hotel business processes. Bear in mind that if you do not have good machineries such as computers, telephones and air conditioners, your customers will not like their stay in the hotel. In line with this, it is important that the processes within the hotel are being managed perfectly by means of automation. This way, it will be easier and faster to carry out the tasks of the employees. Speaking of the employees, they are the third hotel component that you should think about. Make sure that you are able to keep track of their satisfaction as well as their performances in their work. You can definitely verify that they are performing well through the use of the best KPIs for hotels.

The last one is the customer aspect wherein you will have to consider the factors that will make them stay loyal to your company. In addition to that, you should keep track of their behavior through the hotel KPI. Among the KPIs that you can use to measure their response to your efforts are the total number of new customers, the percentage of those clients that keep coming back and the sales per head, which should count all the sales across the hotel areas.

Your hotel KPI should be tracked regularly and you should be able to report quarterly on them. This way, you can make use of the pieces of information that you have obtained through the use of the key performance indicators for hotel chains.