Tag: KPI

Managing hotels is very challenging especially when it comes to making the right decisions. If you are the hotel manager, you have a lot of tasks to perform including overseeing the daily operations, the behavior of the staff and even the appearance of your hotel. There are also managers who are given the responsibility of negotiating the contracts with the suppliers such as the maintenance tools and such. In addition to that, they are the ones who take care of the leases and even the upgrades that should be done on the hotel. Therefore, being a hotel manager is not only about skill and experience; you have to have the determination and the right attitude that will aid you in finishing all the duties that have been assigned to you. Now, you can make your job easier with the help of the hotel KPI.

The hotel KPI or the key performance indicators for hotel chains have been used by various hospitality businesses such as inns, lodges, motels and extended stay hotels. The KPIs are used in order for the managers to know what is happening within the hotel as well as the outside factors including the customers. The indicators take on four different aspects. The first one is the financial aspect of the company. We all know this is very important in the hotel business just like in other commercial endeavors. Your company will never be considered successful unless you are profitable. You will need the cash flow reports so that you can invest well on different things such as hotel improvement and aesthetics.

The second one is the hotel business processes. Bear in mind that if you do not have good machineries such as computers, telephones and air conditioners, your customers will not like their stay in the hotel. In line with this, it is important that the processes within the hotel are being managed perfectly by means of automation. This way, it will be easier and faster to carry out the tasks of the employees. Speaking of the employees, they are the third hotel component that you should think about. Make sure that you are able to keep track of their satisfaction as well as their performances in their work. You can definitely verify that they are performing well through the use of the best KPIs for hotels.

The last one is the customer aspect wherein you will have to consider the factors that will make them stay loyal to your company. In addition to that, you should keep track of their behavior through the hotel KPI. Among the KPIs that you can use to measure their response to your efforts are the total number of new customers, the percentage of those clients that keep coming back and the sales per head, which should count all the sales across the hotel areas.

Your hotel KPI should be tracked regularly and you should be able to report quarterly on them. This way, you can make use of the pieces of information that you have obtained through the use of the key performance indicators for hotel chains.

KPI management is as important as implementation process of Balanced Scorecard. Sure thing, the choice of the right key performance indicators and development of the right strategy is vital for BSC success. At the same time maintenance of Balanced Scorecard and management of key performance indicators is a critical success factor for efficient use of Balanced Scorecard. By the way, improper management of key performance indicators is one of the most common mistakes in implementation and maintenance of Balanced Scorecard. Just having a set of key performance indicators is not enough. It is necessary to adequately measure them, exchange obtained information between different managerial levels, as well as use evaluation results in decision making and strategy revision. This also concerns hotel Balanced Scorecard. Hotel industry is known as being extremely competitive. Indeed, there is no lack of options when looking for the hotel to spend the night there or the entire vacations. Hotels are eager to use
Balanced Scorecard since this system can certainly help transform strategic plans into real actions. This is only possible if all rules and norms of Balanced Scorecard maintenance and KPIs management are observed.

As known, Balanced Scorecard consists of four categories: financial, customer, internal business processes, learning and growth. What makes Balanced Scorecard unique? Unlike similar performance evaluation systems of Balanced Scorecard evaluates nonfinancial indicators as well. In terms of a hotel industry these indicators refer to customer satisfaction, improvement of hotel personnel professional level, optimization of internal processes, for example laundry, dining services, housekeeping and cleaning, reception services etc.

No less imagine such a situation hotel top managers have developed a strategy and selected a set of key performance indicators that fall into the above mentioned four categories. Now is the time to start using Balanced Scorecard and evaluate the selected KPIs. It needs mentioning that key performance indicators should be measurable and understood. As time passes by the first results are obtained. This is perhaps the most important stage since top managers have to find out whether are not they have made the right choice and assigned the right weights for indicators. For instance, such a key performance indicator as room occupancy may not matter much as visitors tend to stay for more than three days in a hotel and maintenance of vacant rooms requires little expenses. This is just a hypothetical example.

Having obtained the first results, top management needs to analyze them. KPI evaluation results show progress or regress of a hotel on its way to implement strategic goals. Thus, hotel managers and owners locate problematic areas and make decisions as to necessary improvements. For instance, if your kitchen performance prevents hotel from optimize an overall performance, relevant decisions need to be made (e.g. hiring new chef, changing food supplier etc.). Balanced Scorecard will work only in case the information it provides is actually used to initiate changes. Balanced Scorecard will not change the situation by itself but rather offer important and valuable information for top managers and business owners.

Hotel efficiency can be measured in so many ways including the productivity of your staff, the effectiveness of your operations and the usability of your services. Hotel services have been designed to aid customers in making themselves comfortable whilst staying in another place. Not many years ago, there were a lot of people who were apprehensive about the fact that they have to stay in another place. This situation made them worry about their safety and security. However, today, many services of the hotels provide assurance to the customers that they will definitely feel comfortable and relaxed while they are at the vicinity. To ensure that your services are efficient, you should use the services provided by hotels KPI.

Hotels have various services according to the needs of the customers. Some have classified their services based upon the type of their customers such as those that have pets, the businessmen and those that are touring with their families. Family programs and seasonal offers are also common nowadays but the most typical services include 24 hour room service, daily newspaper delivery, dry cleaning and laundry services, babysitting and complimentary internet access. Because your hotel might have numerous services available, it is significant that you ensure how well they are performing. This way, you can guarantee the satisfaction of your customers.

When you use the services provided by hotels KPI, you often do not have to worry about the sales that you obtain from them. This is because most of the services can be acquired by the guests for free. Nevertheless, if you have services that come with fees, you can always measure their sales efficiency. Most of the time, the services provided by hotels KPI is used together with the hotel amenities indicators. There are two most important things that you should think about and those are to be efficient and effective. These are what the services provided by hotels KPI is about. The KPIs will enable you to make use of your resources efficiently while aiding you in becoming effective in the eyes of your hotel customers.

To monitor the progress or the improvement of your company, you will need to compare the productivity of your hotel. Therefore, you need data which will tell you how well you have been performing over the past few years. These figures will be later utilized so that you can determine whether your company has evolved or is stuck. The services provided by hotels KPI will answer your question, How are we doing? Measuring progress or the hotel efficiency is not always simple, easy to evaluate and obvious. The reason for this is that there are multiple objectives and oftentimes they are in conflict with one another. In this case, it is essential that before you use the services provided by hotels KPI, you should first integrate your goals and objectives and this is when you can link your KPIs on those targets.

The services provided by hotels KPI drives home the requirement for the internal measures of the hotel efficiency with the external measures so that you can keep the organization in line with the corporate goals.

There are literally thousands of hospitality business indicators that you can use right now. These indicators are commonly known as the hotel management KPI. When you have an effective KPI set for your hotel business, this removes the guesswork when it comes to managing the hotel business. What this does is that it checks the performance of your business through the numbers or the figures so that the managers will be able to use the data in telling what is really gong on within the hotel. Before you get around and research about the hotel management KPI, you should know the difference between that and the hotel KRIs. These two are often compared to each other but they are quite diverse. The hotel KRIs do not focus on the good side of the performance of the company; instead, you will obtain data about how risky your hotel activities are. Having said that, they are also very useful when it comes to tracking the health of your business.

Now, when looking for the best hotel management KPI for your business, you should not only focus on the entire organization because it would be very difficult to do so. You will need to divide the KPIs into different groups or classifications so that it will be easier for you to keep track of them. Among the types of KPIs that you can utilize are the KPIs for reception or front desk efficiency, housekeeping, kitchen, sales, restaurant, store, maintenance and purchasing among others.

Many hotels nowadays offer housekeeping services for their clients. If the hotel that you are managing provides such to your guests, it is essential that you keep track of its performance. This is because many clients are meticulous when it comes to the cleanliness of their surroundings especially their rooms. They are on a vacation so they expect themselves to be pampered and not to be responsible for the task of cleaning their rooms. You can measure the efficiency of your housekeeping services through KPIs such as the number of available staff members for cleaning, the feedback of customers based upon the housekeeping services they have acquired and the total amount of time required for cleaning among others.

Of course, you cannot deny the fact that it is important for you to know how well your business is responding when it comes to the sales department. Cash flow is very significant especially in this type of business. Your hospitality business indicators may vary here according to the different sales efforts that you put out. For instance, if you have a website, you can check the number or the percentage of inquiries that have turned into sales. You can also use KPIs that will tell you about the number of sales per head on your restaurant or your bar. You can also measure the gross profit on sales, the stock turnover, the carrying cost of the stock and the stock value.

Aside from the financials and the customer sales, it is important that you are well aware of how your employees are performing. Always ensure that you have a set of good hotel management KPI that will aid you in monitoring the behavior, the professionalism and the demeanor of your workers.

Hotel managers have the heavy task of supervising the entire hotel which includes a great deal of activities including hotel administration, marketing, accounts, housekeeping, and management of food and beverage, catering and preservation and front office supervision. With all the tasks assigned to you, you will definitely need all the help you can get from your employees as well as the hotel management tools that you can find. Among those that can aid you here is the hotel management indicator. This is better known as the hotel KPI or the key performance indicator, which assists managers in determining which processes are doing well and which are not. Aside from that, this keeps track of the efficiency of the employees, the behavior of the customers and the productivity of the hospitality business.

The hotel business world is a competitive arena so you cannot afford to let your guard down. One day, your rivals might come up with an idea that will take your clients away from you. Thus, you should always put your best foot forward especially when making decisions. You cannot make the right choices if you do not have the information wherein you will be basing your judgments upon. This is why you need the hotel management indicator.

There are hundreds and thousands of manage hotel performance indicators that you can use as of today. Depending upon your goals, your main focus and your strategy, you should be able to narrow down the number of your hotel KPI into five or less. This way, it will be easier for you to monitor the health of your company through the use of the hotel management indicator. For instance, if your main goal is to measure the efficiency of your hotel revenue management scheme, you can utilize indicators such as the REVPAR (room revenue per available room), the total revenue per available room or TREVPAR, the total profit per customer, the gross operating profit for every available room, the REVPAM which is also known as the revenue acquired from conference and banqueting per available square meter and REVPASH that pertains to the revenue from the food and beverage for every available seat and hour.

Now if your main concern is the staff or the employment, there are a number of manage hotel performance indicators that you can exploit including the percentage of wage cost, the percentage of the total labor cost, the total labor hours and the sick days of leave taken by the employees. Another example is when you have an onsite restaurant. You can use hotel management indicator like the total sales for every customers, the number of customers per day, the seating efficiency, the basket analysis and even the strike rate.

The results that you have obtained upon monitoring the performance of your hotel through the use of the KPIs can be used to make smart decisions. You can also utilize them to improve your performance and avoid problems in the future because of early detection. Compete in this cutthroat hotel business world with the confidence that will aid you in vying for reputation and prominence.