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MONITORING GOPPAR PERFORMANCE allows hoteliers to make smart decisions about running their business as they consider all revenue streams and cost variables, according to HotStats. The focus should be on maximizing profit rather than just increasing revenue.
GOPPAR is calculated by taking total revenue, subtracting total departmental and undistributed expenses, then dividing by the total number of available rooms, according to a blog post by HotStats. GOPPAR index measurement gives guidance about why a hotel is either outperforming or underperforming its direct competitors,
allowing a hotel owner to make critical changes to improve business, it said.
In February, GOPPAR for U.S. hotels was down 33 percent compared to February 2019, whereas RevPAR was down 26 percent for the month. It provided evidence that costs were eating farther into the P&L in February.
Hotels are a business and business is about are making money.That's why a major focus for the industry now is on the technology that improves revenue generation.
One company aiming to meet that need in Bloomington-Minnesota based ideas founded by life-long friends and colleagues Ravi Mehrotra and Sanjay Nagalia.Using their
background in artificial intelligence ,they have created a revenue management system, that has been deployed by 19000 hotel properties, including recently added
Choice Hotels International with that company's launch of its ChoiceMax program.
Ideas software offers clients the ability to make rate decisions based on multiple factors that are most human brains can fully calculate.The program puts all the
relevant data together in a comprehensive manner.