Hotels are used to the same old KPIs as every business in the industry.
NB: This is an article from Demand Calendar
These KPIs have been there forever and will not change any time soon. Many of these KPIs are generic and measure a generic performance. There is no link to the strategy if there is a specific one for the hotel.
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Hotel KPIs are useless unless they are linked to a strategy and have a goal to be reached at some point. By linking KPIs to a hotel’s strategy, the hotel can track how successfully it executes the strategy and achieves the intended results.
Several steps in linking KPIs to strategy
Hotels must start with the strategy and link all KPIs to the strategy. The process involves aligning the KPIs with the goals and objectives of a hotel, monitoring, and communicating the KPIs to all stakeholders. Here are a few steps to link KPIs to strategy.
Define the strategy
Establish the hotel’s mission, vision, and goals by conducting one or several strategic planning meetings with stakeholders before setting plans and budgets for the next year.
Clarify the purpose of each goal, such as growing revenue and becoming more productive, and determine the desired outcomes.
Prioritize the goals and determine which ones are most critical to the hotel’s success.
Identify the KPIs
To create a KPI, a hotel needs data. Therefore, conduct a thorough analysis of the data that is available and relevant to the hotel’s goals and objectives.
Determine which metrics would be most meaningful and effective in measuring the strategy’s success.
Clearly define the KPIs. Involve stakeholders for input in all aspects of calculating a KPI. One example is how to define occupancy in a hotel. Is occupancy calculated based on the fact that the room is occupied (someone is in the room) or based on the fact that someone paid for the room but did not stay in the room?
Select the most relevant, meaningful, measurable, and actionable KPIs.
Align the KPIs
Connect each KPI to a specific goal or objective in the strategy.
Ensure that the KPIs selected support the overall strategy and are aligned. This is critical, so KPIs are not contradictory and create conflict among stakeholders.
KPIs are often used to calculate commissions or bonuses for employees. Again, the definition of the KPI is critical, as is the alignment, so people are working toward the same goals.
Consider how each KPI will be used to monitor progress and drive improvement.
Read rest of the article at Demand Calendar
The post How to Build a Hotel KPI Tree and Link it to Your Strategy appeared first on Revenue Hub.
