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.

  • 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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