(Gross Operating Profit per Available Room)
Hospitality Tip Of The Day (6)
#hospitalitytipoftheday(Gross Operating Profit per Available Room)
GOPPAR represents the revenue that’s left after handling various expenses, such as monthly bills, salaries, insurance, and taxes.
As it excludes operational costs, it’s a better KPI than RevPAR. You can use it to gain insights into your overall revenue and performance, as well as identify the most revenue-generating parts of your property.
GOPPAR Formula
GOPPAR = Gross Operating Profit (GOP) / Number of Available Rooms
Gross Operating Profit = Total Room Revenue - Gross Operating Expenses
Example: If your total room revenue is $50,000 and your gross operating expenses are $15,000, you would need to divide the GOP of $35,000 with 20 available rooms, for instance. Your GOPPAR would be $1,750
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