Hospitality Tip Of The Day (50)
#hospitalitytipoftheday (Daily Hospitality tip for hotelier)
How do you calculate your hotel RGI?
Here’s what you need to do to calculate your hotel’s RGI.
Decide on a period you are going to be looking at. This can be a week, a month or an entire year of trading.
Calculate your own hotel’s RevPAR.
Calculate the local market’s RevPAR. You can use the help of a rate shopper for this purpose. You can find out what a rate shopper is in this blog post.
Divide your own hotel’s RevPAR with the local market RevPAR figure.
Multiply this number by 100.
Here’s how this looks: RGI = (Your Hotel RevPAR / Local market RevPAR) * 100
How do you calculate your RevPAR?
There are two different ways you can compute RevPAR for your hotel:
Formula: RevPAR = Average Daily Rate * Occupancy Rate
Formula: RevPAR = Total Room Revenue / Available Rooms