Let's delve into the Gross Operating Profit Per Available Room (GOPPAR) KPI, a crucial metric in the hospitality and tourism industry.

Gross Operating Profit Per Available Room (GOPPAR)

Data Requirements

To calculate GOPPAR accurately, you need specific data points from various sources within your hotel or hospitality business. Here's a breakdown:

Specific Fields and Metrics:

• Gross Operating Profit (GOP):

  This is the total revenue generated by the hotel minus the direct operating expenses. It represents the profit before considering fixed costs like rent, interest, and depreciation.

  • Total Revenue:

    This includes revenue from all sources, such as room sales, food and beverage, spa services, and other ancillary services.

  • Direct Operating Expenses:

    These are costs directly related to running the hotel, including:

    • Cost of Goods Sold (COGS):

      For food and beverage operations.

    • Payroll:

      For operational staff (housekeeping, front desk, food and beverage service).

    • Utilities:

      Directly related to guest operations (electricity, water).

    • Supplies:

      Cleaning supplies, guest amenities, etc.

    • Commissions:

      Paid to travel agents or online booking platforms.

• Available Rooms:

  This is the total number of rooms available for sale in the hotel, regardless of occupancy.

  • Total Rooms:

    The total number of rooms in the hotel.

  • Out-of-Order Rooms:

    Rooms that are temporarily unavailable due to maintenance or other issues.

Data Sources:

• Property Management System (PMS):

  This is the primary source for room sales data, occupancy rates, and available room counts.

• Point of Sale (POS) System:

  Used for tracking revenue from food and beverage outlets, spa services, and other ancillary services.

• Accounting System:

  Provides detailed information on operating expenses, including payroll, utilities, and supplies.

• Human Resources System:

  For payroll data and staff costs.

Calculation Methodology

GOPPAR is calculated by dividing the Gross Operating Profit by the total number of available rooms. Here's the step-by-step process:

1. Calculate Gross Operating Profit (GOP):

   GOP = Total Revenue - Direct Operating Expenses

2. Determine Available Rooms:

   Available Rooms = Total Rooms - Out-of-Order Rooms

3. Calculate GOPPAR:

   GOPPAR = Gross Operating Profit / Available Rooms

Example:

Let's say a hotel has:

• Total Revenue: $500,000

• Direct Operating Expenses: $300,000

• Total Rooms: 200

• Out-of-Order Rooms: 10

Then:

• GOP = $500,000 - $300,000 = $200,000

• Available Rooms = 200 - 10 = 190

• GOPPAR = $200,000 / 190 = $1052.63 (approximately)

Application of Analytics Model

An AI-powered analytics platform like 'Analytics Model' can significantly enhance the calculation and analysis of GOPPAR. Here's how:

• Real-Time Querying:

  Users can ask questions in natural language, such as "What is the GOPPAR for the last month?" or "Show me the trend of GOPPAR over the past year." The platform can retrieve the necessary data from various sources in real-time.

• Automated Data Integration:

  The platform can automatically connect to PMS, POS, accounting, and HR systems, eliminating the need for manual data collection and consolidation.

• Automated Insights:

  The AI can identify trends, patterns, and anomalies in GOPPAR data. For example, it can highlight periods of low GOPPAR and suggest potential causes, such as high operating costs or low occupancy.

• Visualization Capabilities:

  The platform can present GOPPAR data in various formats, such as charts, graphs, and dashboards, making it easier to understand and interpret. Users can visualize trends over time, compare GOPPAR across different periods, or analyze performance by room type.

• Predictive Analytics:

  The AI can use historical data to predict future GOPPAR, allowing hotels to proactively adjust their strategies and optimize revenue.

• Customizable Reporting:

  Users can create custom reports tailored to their specific needs, focusing on specific segments or time periods.

Business Value

GOPPAR is a powerful KPI that provides valuable insights into a hotel's operational efficiency and profitability. Here's how it can be used:

• Performance Measurement:

  GOPPAR allows hotels to track their performance over time and compare it to industry benchmarks.

• Operational Efficiency:

  By analyzing GOPPAR, hotels can identify areas where they can reduce operating costs and improve efficiency.

• Pricing Strategy:

  GOPPAR can inform pricing decisions, helping hotels optimize room rates to maximize revenue and profitability.

• Investment Decisions:

  GOPPAR can be used to evaluate the potential return on investment for new projects or renovations.

• Budgeting and Forecasting:

  GOPPAR can be used to create more accurate budgets and forecasts, allowing hotels to plan for the future.

• Competitive Analysis:

  Comparing GOPPAR with competitors can provide insights into a hotel's relative performance and identify areas for improvement.

• Strategic Decision Making:

  GOPPAR helps in making informed decisions about resource allocation, marketing strategies, and overall business direction.

In conclusion, GOPPAR is a critical KPI for the hospitality industry. By leveraging an AI-powered analytics platform, hotels can gain deeper insights into their performance, optimize their operations, and ultimately improve their profitability.