Gross Revenue

What is the meaning / definition of Gross Revenue in the hospitality industry?

Gross Revenue refers to the total sales made by a business. It thereby highlights a business’s ability to sell products and services, but it does not reveal if a company is able to strike a profit.

It is the company’s revenue minus the cost of goods sold (COGS). In this case it is also referred to as gross profit and, when expressed as a percentage of revenue, gross margin. Gross Revenue can be found on the top line of a company’s income statement. In order to calculate the Gross Revenue, together the total value of all sales must be added together.

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About the Author:

As CEO and Founder of XOTELS, Patrick Landman has made it his mission to turn hotels and resorts into local market leaders. XOTELS´ diverse expertise and deep-knowledge across revenue management consulting, hotel management, and hotel consulting, enables us to drive results for independent boutique hotels, luxury resorts, and innovative lodging concepts. Below you will find opinion articles written by Patrick Landman.