The leading industry standard for measuring a business's success is called RevPAR. According to the article by Gary Carr and our text RevPAR is the revenue per available room. Sometimes during hard economic conditions it is necessary for managers to go deeper into the numbers in order for them to come up with a competitive edge. The alternative to RevPAR is ProfPAR or GOPPAR. ProfPAR and GOPPAR both refer to gross maximum profits per room. These alternative ways of measuring the success of the hotel can be very important under certain economic conditions. .
Larkspur Hospitality company of San Francisco, currently uses GOPPAR as its measurement for success. The company currently uses GOPPAR, because they feel that it provides a clearer picture of the hotels bottom line. The key benefit to GOPPAR is the ability for the company to control their budget. The company can look at the market and see what customers are willing to pay for a room and adjust price accordingly to cover gross costs. By looking at the gross profit per room it is possible to get a better understanding of owner's wealth and operating efficiency. GOPPAR takes into account all aspects of operating expenses per hotel. GOPPAR looks at food and beverage sales, departmental revenues, and banquet sales in order to come up with a total gross profit for the hotel. This is very important, because two different hotels with the same number of rooms that charge different rates per room do not mean that the higher room rate hotel makes more money. Larkspur Hotel uses this method, because they feel that GOPPAR provides a much more accurate description of the overall success of their various properties. This better understanding of the bottom line of the hotel provides managers with a lot more useful information when it comes time to make decisions on the hotels success.
I think that GOPPAR is definitely a better way for a hotel to look at its market potential.
Why is RevPAR(Revenue Per Available Room) a better measure of a hotel's effectiveness than RevPOR (Revenue Per Occupied Room)? ... RevPAR (Revenue Per Available Room) is better measure of a hotel's effectiveness because it is based on room rates and occupancy. When RevPAR increases it means that there is more rooms rented or room rates have risen, or both. ...
1. Introduction - Relevant history & Business environment The heritage of the Jurys group can be traced back to 1881, when William Jury opened his first boarding house in Dublin. The Doyle Hotel Group was then founded in 1964 by Pascal Vincent Doyle, a man of great vision who recognised that, as tourism became more available and more affordable, Dublin was going to need new 'medium' grade hotels. When the Doyle Montrose opened its doors in 1964 it became an instant success - serving local business during the week and providing affordable, quality accommodation for guests coming ...