Hotel Performance Measures Evaluation



Join Balanced Scorecard Group 

Practice-based Balanced Scorecard Trainings

Online KPI Dashboard Sign up with web-based KPI Dashboard:

  • Access your KPIs online;
  • Measure your success;

Navigation: All Balanced Scorecard Articles > Benchmarking with Balanced Scorecard

Use of Balanced Scorecard is quite popular to evaluate hotel KPIs. Read description of some KPI used in hotel benchmarking in this article. Check additional information about hotel performance measures.

What is a universal success recipe in business? Even the most well known business gurus will not give you a definite answer. The problem is that every business is individual and thus requires individual approach. It should be noted that the situation is aggravated by a tough competition. If 30 years ago commercial businesses only had to offer high quality products at competitive prices, now the situation has entirely changed. These days, companies have to win loyalty of their customers. It especially concerns hotels. When vacation season begins hotel start a real fight for customers. Indeed, visitors have a very wide choice of hotels in different price ranges. As already said, hotels compete for customer loyalty. You know that in most cases those hotels win that have well thought and realistic strategy. One of the most common mistakes in strategic planning is that strategy unfortunately remains on paper. There is no problem in designing the most ambitious strategic plan but if they remain on the top management level there is no use in such a strategy. That's why hotel owners and top managers are strongly recommended to use Balanced Scorecard which is known as one of the tools used for strategic management and performance evaluation purposes. Every strategy in a hotel is definitely customer focused. Sure thing, financial goals matter most of all, but the truth is that they simply cannot be achieved without retention and attraction of new customers. This is the only way a hotel can generate income.

As known, Balanced Scorecard employs very simple principle: it evaluates key performance indicators (KPIs) that represent critical success factors both in internal and external business environment. The four categories of Balanced Scorecard - financial, customer, internal business processes, learning and growth - cover the most important aspects of inside and outside the hotel. With a Balanced Scorecard it is possible to adjust internal processes in accordance to new market conditions and requirements. It is remarkable that the set of key performance indicators can be changed during evaluation process, as required by external changes. Let's review several key performance indicators used in hotel Balanced Scorecard.

Number of hotel guests per employee. This is a very important indicator that makes it possible to efficiently manage number of hotel employees and optimize personnel quantity. This indicator can also demonstrate group performance of employees. Naturally, the more hotel guests an employee can manage the better.

Net room revenue. This is a very important financial indicator that makes it possible to calculate total revenue for the entire hotel as well as offer valuable information on how to increase revenue without sufficient hike in hotel rates.

Percentage of international guests. This indicator can tell much of hotel quality and services. The more international get choose to visit a hotel that hire its reputation and the international and local community. If there are not many international guests in a hotel, perhaps new services and offers have to be introduced in order to attract such customers that are expected to spend much money.

If you are interested in hotel performance measures, check this link to find out more about hotel performance measures. Also, you can check other articles in Benchmarking with Balanced Scorecard category.



 

10 steps self-education plan for Balanced Scorecard.

Subscribe to BSC Articles newsletter to learn more about how-to articles, BSC development and implementation.

Balanced Scorecard Toolkit 
Balanced Scorecard Toolkit includes step-by-step manuals, documents, presentations, check lists designed to help business professionals with successful development and implementation of Balanced Scorecard. Learn more about
BSC Toolkit.

Free Balanced Scorecard Templates

 

Balanced Scorecard Software - BSC Designer



Copyright © 2000-2010 Scorecard Report. All rights reserved.