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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STR/TE Market Forecast Assumptions – August 2024
STR/TE Market Forecast Assumptions – August 2024Market Forecasts, produced by STR and Tourism Economics, provide you with the insights needed to anticipate future performance.
U.S. hotel commentary - July 2024
U.S. hotel commentary - July 2024Analysis by Jean-Claude Pedjeu and Chris Klauda
The role of total revenue management in a hotel profitability strategy
The role of total revenue management in a hotel profitability strategyThe global hotel industry is firmly positioned in an era of normalized growth levels. That means to achieve greater profits, hotel owners and operators need to explore every possible revenue stream while also working to manage expenses.
Smaller markets scored big during Euros
Smaller markets scored big during EurosThe second-most watched football tournament in the world, the UEFA European Football Championship, which is held every four years, returned to the global stage from 14 June through 14 July. With the exception of Euro 2020, which was played across a host of countries from England to Azerbaijan, the sporting event is normally played in its entirety across one or two host nations.
Formula 1 races are shifting hotel performance into high gear in 2024
Formula 1 races are shifting hotel performance into high gear in 2024Set on a global stage, Formula 1 spans across multiple continents, with 12 of the 24 races so far this year having taken place on F1’s biggest ever calendar. We take a look at how host market hotels performed during this year’s races and what occupancy on the books looks like for races set for later this year.
U.S. hotel commentary - May 2024
U.S. hotel commentary - May 2024Analysis by Jean-Claude Pedjeu and Chris Klauda
RevPAR vs. TRevPAR
RevPAR vs. TRevPARIf you work in the hotel business, acronyms are part of the job. Among the many shorthand terms we use, two are particularly important for measuring performance. Their names might strike a similar chord, but delving into these respective metrics reveals crucial distinctions.
What is GOPPAR? How can it benefit your hotels?
What is GOPPAR? How can it benefit your hotels?What is GOPPAR?
One of the hospitality industry’s key bottom-line metrics, gross operating profit per available room measures the relationship between hotel revenues and expenses. In general, the better you understand GOPPAR, the better you will be at turning revenue into profit. That is why it is important to benchmark your GOPPAR, along with the other key P&L metrics, on a consistent basis.
What is LPAR?
What is LPAR?Labor is typically one of the highest expenditures for hotels on average. The issue of acquiring labor became more complex during the COVID-19 pandemic, with many workers opting for employment in other sectors or not returning to the hospitality workforce after a period of layoffs and furloughs.
65% of global markets post year-over-year RevPAR growth
65% of global markets post year-over-year RevPAR growthAnalysis by Eddie Yeung
Note: All financial figures presented in US$.
STR's global "bubble chart" update for the four weeks ending 15 June 2024 shows 65% of markets with year-over-year growth in revenue per available room (RevPAR). The percentage has remained between 60% and 77% with much of the world firmly positioned in a normalization period.