Hospitality for Dummies: Your Guide to the Top Industry Terms
Have you ever sat in a meeting completely lost and confused by all the acronyms and jargon that’s flying around? Well fear not, Revpar Media has a quick guide for you!
Let’s take a look at the top ten terms you should know.
YOUR GUIDE:
Adjusted Gross Operating Profit (AGOP): AGOP measures the gross operating profit used to determine your hotel’s income, not including the hotel management fee.
Average Daily Rate (ADR): This is the average rate paid for total rooms sold each night.
Average Published Rate (APR): You’ll find this rate by averaging all types of hotel rooms throughout the year, based on the high or low season.
Benchmarking: This is comparing your hotel to your competitors. You can choose different focuses when you’re benchmarking, such as: “product/service, room rate, or overall quality.”
CPOR (Cost per occupied room): a formula that calculates the average cost per occupied room.
Forecast: (Not to be confused with the weather forecast). This analysis provides revenue expectations for an upcoming period of time.
Gross Operating Profit (GOP): The total gross operating revenue of your hotel, minus gross operating expenses.
Key Performance Indicator (KPI): A metric used to measure your business’s performance.
RevPar: (One of our faves!) Is short for “Revenue Per Room,” which is calculated on the number of rooms available to sell in a hotel.
Total RevPAR (Total Revenue Per Available Room): This formula calculates the sum of net revenues from all operating departments per available room for a specified time period, divided by the total available rooms during a specified time period.
There you have it! These are our top 10 terms to know if you’re new to the hospitality industry or need a refresher. If you’re looking for more hospitality marketing insights, check out our blog and podcast, Socially Awkward. You can also subscribe to our newsletter, the STAR Report on LinkedIn, so you never miss out!
Tune in next week when we’ll recap our most recent F&B activation and share photos from our recent company retreat.
