What is the meaning / definition of KPI / Key Performance Indicators in the hotel industry?
KPI is an acronym for: Key Performance Indicator
KPI includes a set or ratios and formulas that help calculate and indicate the performance and progress of a hotel accordingly to their plans and actions.
Here are example of series of standard Key Performance Indicators to monitor and to benchmark performance of different departments in a hotel.
- Accommodation (Rooms)
- Food
- Cost of Sales Ratio
- Gross Profit Ratio
- Average Spend per customer
- Labour Cost Ratio.
- Beverage
- Cost of Sales Ratio
- Gross Profit Ratio
- Average Spend per customer
- Labour Cost Ratio.
- Profitability
- Operating Profit Ratio
- Net Profit Ratio
- Liquidity
- Current Ratio
- Average payment period
- Average collection period.
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