GOPPAR, in general, provides an accurate indication of profitability as well as, an accurate perspective on hotel’s revenue potentials, an effective performance measure within the different size of market, beside it has a great significance in the hotel industry and is widely used to evaluate the assets and underlying value of …show more content…
RGI is an important measure as it helps in determining the gain in the share of revenue of a hotel in the industry. The metric helps in comparing the revenues of a hotel with its competitors in the market. It is calculated by comparing the RevPAR of one hotel with an average RevPAR in the market (Please refer to the formula in Appendix A). Currently, there are no significant drawbacks of this key performance indicator as it is considered to be a more reliable tool for the measurement of performance. In general, hotel’s RGI should be over 100. If you achieve lower score, it would mean that competitor influences the business more than your …show more content…
RevPAC has preference over RevPAR due to multiple occupancies. Most of the hotel managers consider calculating the revenues per available customers because of its higher acceptance in the market. The limitations of this performance indicator are that it does not cover the economic aspects that affect the calculation. Therefore, some uncertainties remain in the results of the RevPAC (Ivanov,