Analysis Of Room Revenue Per Available Room

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ESSAY 1
Paragraph 1 - introduction (RevPAR) and (GOPPAR)
Room Revenue per available Room (RevPAR)
In today’s dynamic scenario and ever changing economies it is necessary to evaluate the revenues and expenses of your hotels and keep track of records in an updated way. For the same, analysis of certain industry ratios like the Revenue Per Available Room (RevPAR), and Average Daily Rate (ADR) becomes quite convenient to make comparisons between several years. Revenue Per Available Room (RevPAR), is certainly the most crucial ratio popularly used to assess the financial performance in hospitality business. It helps in pricing guest rooms tactfully.

http://hmghotelsblog.com/2013/05/13/revpar-how-to-maximize-hotel-revenue/
Gross Operating Profit …show more content…

It combines room occupancy and room rate data to measure hotels total room revenues.
Gross operating profit per available room (GOPPAR) is defined as total gross operating profit (GOP) per available room per day.It is also defined as a hotel’s total revenue minus its management’s controllable expenses per available room. higheredbcs.wiley.com/legacy/college/dopson/.../notes/chapter08.doc Paragraph 3
It should be noted that Gross operating profit per available room (GOPPAR)is highly sensitive to any fluctuation in Revenue Per Available Room (RevPAR).The profit margin of the rooms department is considerably higher than that of any other revenue generating department. Hence a slight fluctuation in Revenue Per Available Room (RevPAR) can have a significant effect on Gross operating profit per available room (GOPPAR).
Its conversion into Gross operating profit per available room (GOPPAR) is high, so a slight fluctuation in the former has a significant effect on GOPPAR. Therefore, Gross operating profit per available room (GOPPAR) is regarded as a complement to Revenue Per Available

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