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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New York City and Washington, D.C. among top performing U.S. markets in 2023
New York City and Washington, D.C. among top performing U.S. markets in 2023Analysis by M. Brian Riley
In 2023, many key U.S. hotel markets caught up on recovery that was held back due to a lack of business travel. That is why markets like New York City and Washington, D.C., were atop the 2023 performance list, while growth leaders from previous years were more grounded due to diminished leisure travel.
85% of global markets recovered RevPAR last year
85% of global markets recovered RevPAR last yearAnalysis by Eddie Yeung
Note: All financial figures presented in US$.
STR's global “bubble chart” update for 2023 shows 85% of markets with revenue per available room (RevPAR) higher than 2019. In terms of top-line performance, that means most markets have recovered from the significant declines caused by the pandemic.
Using business on the books in a complete benchmarking approach
Using business on the books in a complete benchmarking approachHotel 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 future booking levels in the marketplace.
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 performance standouts during Beyonce’s world tour
Hotel performance standouts during Beyonce’s world tourAnalysis by M. Brian Riley
Concerts and major events have always been important revenue opportunities for hotels, but 2023 has felt like the “year of the concert” with major tour generating headlines and lifting performance all over the world.
Taylor Swift impact grows to $208M in U.S. hotel room revenue
Taylor Swift impact grows to $208M in U.S. hotel room revenueAnalysis by M. Brian Riley
Taylor Swift, Coldplay and the Rotary Convention: Singapore hotel bookings jump for eventful first half of 2024
Taylor Swift, Coldplay and the Rotary Convention: Singapore hotel bookings jump for eventful first half of 2024Analysis by Jesper Palmqvist, Senior Director – Asia Pacific
There is plenty of time remaining in 2023, but Singapore’s hotel bookings are already increasing rapidly for 2024 with the market set to host several major events early in the year. Utilizing Forward STAR data, we took a quick look at the specific impact for Singapore’s hotels from Taylor Swift’s “The Eras Tour”, Coldplay and the global Rotary Convention.
Are concerts “running the world?”: A look at how Beyoncé’s Renaissance World Tour has impacted Europe hotel performance
Are concerts “running the world?”: A look at how Beyoncé’s Renaissance World Tour has impacted Europe hotel performanceOkay, hotels, “now let’s get in formation”, because major concert tours seem to be boosting performance all around the world. In May and June 2023, the stage was Europe for Beyoncé’s Renaissance World Tour, which featured 19 shows across 14 European cities. Let’s just say that the hotel industry is likely “crazy in love” after the impact Beyoncé had on the region.
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.