Patrick has some good insight and key points on Revenue Centers...........
In the early days we all measured the performance of our hotel based on occupancy. and ADR Then the revenue management phenomenon hit our industry and we all shifted to REVPAR. Nowadays the keyword is GOPPAR. We want to see how every booking affects our GOP. But something is missing…
On a flight last week back from London to Barcelona I have been pondering on the fact that we are moving from REVPAR or revenue on our profit and loss statement all the way down to GOP or gross operating profit to fast. Mind you the first articles on GOPPAR I find online date back from 2003. But we are missing a few steps here which are crucial to fully understand our GOPPAR.
And don’t get me wrong, I am one of the biggest fans of GOPPAR as REVPAR does not give us enough insight as KPI (key performance indicator). However we need to fully understand what the GOPPAR represents.
So lets a take a step back and run through the definition of REVPAR and GOPPAR.
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