Measuring Performance Powerpoint.ppt

APPLIED MATHEMATIC FOR HOSPITALITY CASE 4 : MONITORING HOTEL & RESTAURANT PERFORMANCE

MENU OF THE DAY

1) Purpose of measuring performance 2) Mathematic skills required to measure performance 3) Practice Measuring Performance : Occupancy rate, Hotel Average Stay, RevPar, Table Turnover, Average Revenue Per Guest

LEARNING CHECK LIST CASHIER REPORT - Cash Issuance - Cash Return - Sales/Revenue Report - Card Revenue Report - Cashiering Report - Cash Balance Issue - Cash Bill Balance Issue - Charging card issue - Closing Bill Issue

1) WHAT IS HOTEL & RESTAURANT PERFORMANCE Why Measure Hotel & Restaurant Performance ? : - Hotel and restaurant have one and only one purpose : generate always more profit. To try to always increase their profit, managers need to measure the performance of their property to find what can improve, to reach higher profitability. What indicators can help measure performance ?

- Occupancy rate : It shows how occupied (full) is your hotel. It is measured in % - Hotel Average Stay : It is how long on average guest stay at the hotel. It is measured in amount of nights - Revenue per Room Available (RevPar): It is how much revenue your room generates. It is measured in RM per room. - Table Turnover : It is how many times the tables are used per service (lunch or dinner). It is measured in frequency (for example : a table is used 2 times per service) - Revenue per Guest: It is how much a guest spend on average when dining at a restaurant. It is measured in RM.

2) MATHEMATIC SKILLS REQUIRED TO MEASURE PERFORMANCE

Performance indicators used more complex calculation mostly based on percentage. They are : -Addition -Division -Calculate percentage -Calculate Average

3) PRACTICE MEASURING PERFORMANCE

Using the document given to you, you must complete : -

Room Status Report Room Booking Schedule Hotel Revenue Report Restaurant Revenue Report What Formula do you need ? :

OCCUPANCY RATE REVPAR TABLE TURNOVER AVERAGE REVENUE PER GUEST HOTEL AVERAGE STAY

OCCUPANCY RATE Number of Room (or Table) Occupied Total Number of Room Available

X 100

HOTEL AVERAGE STAY Total Number of Night Stay Total amount of Guest

REVPAR Total Room Revenue Total Number of Room in the hotel

AVERAGE REVENUE PER GUEST

TABLE TURNOVER

Total Restaurant Revenue

Number of table served

Total Number of guest served

Number of table in the restaurant