Just in time to help you chart a course through recovery, HSMAI’s KPI Workgroup has developed a master list of key performance indicators for hospitality sales, marketing, and revenue optimization — from ADR to YOY Growth.
Having a strong grasp of key performance indicators has never been more important for hospitality sales, marketing, and revenue optimization professionals, who are helping guide their companies to success in a post-pandemic market where it’s not always clear how best to measure success. That’s where HSMAI’s new master list of KPIs comes in. Developed by HSMAI’s KPI Workgroup, the list spans 65 individual KPIs — from ADR to Year-Over-Year (YOY) Growth — describing each one, explaining how it’s calculated, and identifying which hospitality professionals will find it most relevant.
The Workgroup grew out of HSMAI’s Revenue Optimization Advisory Board and originally was focused on moving the industry beyond its fixation on RevPAR and getting it adopt at least one new KPI. “As the pandemic hit, it became apparent that our industry needed not one KPI but a standardization, narrative, and benchmarks for all KPIs that could be used interchangeably between all stakeholders, to include hoteliers, vendors, investors and owners,” said KPI Workgroup Chair Lori Kiel, chief revenue and marketing officer for The Kessler Collection.
“What quickly became apparent in our work was that profitability and top-line KPIs were historically not married” Kiel said. “However, in today’s world, it is important that revenue management is taking distribution costs into account when determining those strategies to drive top-line revenue, and hence the importance of KPIs that took into account the revenue stream and costs per KPI.”
The KPI Workgroup will continue updating the list as it continues its work and receives feedback from hospitality professionals.