Connecting Revenue and Profitability: Flow Through and Flex Explained
Hoteliers track numerous metrics to understand the health of their properties in both the short and long term. Top-line revenue metrics are foundational to understanding hotel performance—but they’re only the beginning. When those metrics shift, the question isn’t just what changed, but how those changes ultimately impact profitability.
Two metrics help answer that question: Flow Through and Flex.
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Strategic success unveiled: How competitive sets lead hoteliers to informed business decisions
Strategic success unveiled: How competitive sets lead hoteliers to informed business decisionsGood decisions can be made with high-level information. Optimal decisions come when you have comprehensive information. That is why hotel owners and operators are best positioned to grow their business when they gain detailed insight into the competition.
Understanding your STR reports: Profit & Loss (P&L)
Understanding your STR reports: Profit & Loss (P&L)Regardless of how the hotel industry benchmarks performance, the end goal is always maximum profitability. Like all other elements of industry benchmarking, there are data sets and reports designed specifically to measure the success of that goal.
The hospitality industry's historical KPIs
The hospitality industry's historical KPIsPerformance benchmarking is paramount in the hospitality industry, and whether measuring success against yourself, the competition or a specific segment of the market, the process involves foundational historical metrics.
How to analyze your P&L statement
How to analyze your P&L statementKey to understanding your hotel’s profitability, your P&L statement outlines your profits or losses over a given time period—as the name suggests.
The role of profitability data in a comprehensive hotel benchmarking experience
The role of profitability data in a comprehensive hotel benchmarking experienceHotel owners and operators are best positioned for success when they measure their business from every angle. That is why no benchmarking experience can be considered comprehensive without frequent insight into the bottom line.
Hotel Operating Expenses Checklist
Hotel Operating Expenses ChecklistTracking hotel operating expenses is vital in understanding your property's financial performance and better managing costs, which is part of the equation for increasing your profit margins. Given that gross operating profit is calculated by subtracting total operating expenses from total operating revenues, minimizing expenses and maximizing revenue is the obvious approach to boosting profits.
What is Revenue per Available Room (RevPAR)? And how to calculate it.
What is Revenue per Available Room (RevPAR)? And how to calculate it.Hotel P&L Example
Hotel P&L ExampleWhat is TRevPAR and why is it important?
What is TRevPAR and why is it important?In a previous post, we discussed the vital role of RevPAR when measuring hotel performance.
How revenue managers should spend their time with STR data
How revenue managers should spend their time with STR dataIf you’re familiar with the hotel revenue management discipline, you probably know that its strategic cycle comprises four main stages—analyze, identify, develop and monitor. You’re probably also familiar with the STAR Report and the dSTAR platform, which empower you with the data intelligence needed to navigate each of those stages and measure your property’s performance on an ongoing basis.