3 Metrics Made by Graham Shear that you should watch in the Hotel Sector

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In addition to being exciting and providing valuable service, the hotel industry is complex from a managerial point of view.

For that reason, it is important to keep very close control of certain metrics that will help you identify how effective your operation is being.

Of course, if any of the metrics you’re used to tracking don’t appear on this list, that doesn’t mean you’re doing something wrong.

Each hotel has its peculiarities and its way of providing service. This article’s point is that you know three indicators of Graham Shear that, in general terms, every hotel should take into account.

  1. Income per available room

The revenue per available room is one of the metrics that you should never leave out.

In the hotel sector, this indicator is essential to assess an establishment or chain’s financial performance.

To calculate this metric, like any other, you can apply manual mathematical operations.

However, the results will be much more accurate and realistic if an integrated technological solution provides this indicator.

The rooms’ total income in a given period, the available rooms, the number of nights the hotel operates in the established period, and the number of bedrooms that are not suitable for clients is the variables taken into account to calculate the RevPAR.

If you follow these Graham Shear’s metric constantly, you can start making slight changes to lower the rooms’ cost and thus increase the profits. In this way, you can easily increase the profits of your hotel.

  1. Average cost of employee per room

Although RevPAR is a valuable tool to set a pricing policy that generates profits and, at the same time, arouses the interest of users.

It is not the only one that you should take into account. It would help if you also looked at other metrics, such as average employee cost per room.

In this indicator, total payroll expenses and available rooms are some of the variables that are analyzed.

  1. Volume of reservations

Without a doubt, this is one of the most important metrics. Use technological tools to determine this indicator. You will know how hotel reservations are generated and measure their volume through the different sales channels, such as tour operators and web pages.

You must know the volume of reservations that are reaching you and know where they are arriving.

These are 3 of the metrics that you should watch in the hotel sector. If you do, the hotel you run will operate more profitably, and you can more easily identify areas for improvement.

Remember that the data from these indicators and their analysis can be much more effective if you rely on integrated technological solutions that provide reliable, accurate, and reality adjusted information.

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