Hotel GOP management application Importance for hotel How to replicate law? I analyze it for you

Original: Li Sheng

Measured by hotel GOP

What is being measured?

measured

A very important indicator for hotel operators

Because

Differences in conceptual and definitional understanding

This will prompt

Misunderstanding and conflict between operators and investors

So

GOP required

Recognition or by mutual agreement

Override

How about you

What about GOP? I teach you

"Group group"

This is "Gross Operating Profit"

Short name

That is, operating profit

It's in

Displayed in income statement as revenue less expenses

Payroll costs, direct costs of back office

Balance after back office overhead

GOP

Hotel Total Operating Income - Hotel Total Operating Expenses

Many problems

Total hotel operating expenses

Because of hotel

In stage of investments and finishing

Many times

Neither general manager nor operations team was involved

Investment equipment and hotel positioning

Big investment in decoration

Everything is selected in accordance with preferences of investors

Choice between quality and performance

This will directly affect maintenance and repair costs of hotel

However

This part of cost after opening of hotel

It's included in GOP

So

Understanding and redefining GOP

This is very important

According to international hotel

GOP definition, depreciation of fixed assets

Loan interest

Etc. - investor costs, "GOP" minus depreciation charges.

Percentage

Balance after depreciation of start-up expenses

This is net income of hotel

This is also net return that investors can make

here

Another important question

This is depreciation of fixed assets

Because

This part will definitely be involved in operation and management of hotel

But not in GOP definition

So you need to redefine this indicator

Avoid exploitation rules

This piece of content is in automatic mode and managed

In terms of GOP application

Including but not limited to following four aspects

First,

Goal management

Each hotel

There will be annual goals

The annual goal will have a GOP to reach the goal

Highlight here

Before setting goals

Be sure to override GOP

Notify management of specific content

Second,

Budget management

Depending on budget level

The content of budget will be analyzed and determined point by point

There will inevitably be associated costs and expenses

I'm in practice

At this stage will be with hotel

The store has always had a special communication

Finance

It is necessary to determine which specific projects are carried out by company's headquarters

These are hotel charges and fees. Avoid

In specific process of hotel operation

In order to save money and expenses

Hotel

Insist on servicing some equipment that needs to be repaired

Insist on maintenance, not repair

This will affect guest experience and satisfaction

Third,

Operations Analysis

GOP Indicator - Hotel

Analysis of operations is an important indicator

GOP Analysis

You will find

Key points to improve in hotel management

For example:

Single Room Rate

Utility data, marketing spend, etc.

Megapolis

Remind hotel management that this is normal

To improve

If marketing costs are high

It is necessary to analyze specifically increase in OTA commission

Or cost of maintaining agreement company is too high

Promotion costs are still poorly controlled

If

Because proportion of OTA clients is too high

When hotel is full

While meeting expectations

You may want to consider

OTA share or commission reduction, %, ratio

or

The hotel needs to create its own membership system

Fourth,

Efficiency test

GOP can

As an important indicator of hotel management evaluation

Depending on location of hotel

Set a specific aspect ratio

May be considered for monthly evaluation

During month

This can be understood as a progress indicator

If

Positioning a GOP indicator at end of year is a performance indicator

more than important

Because of GOP index

It directly reflects profitability of hotel

Also, this is metric most sought after by hospitality investors.

Using GOP

Depending on needs of hotel

Different understanding of GOP

Definition difference

There will be some changes in results

However

Regardless of how GOP is defined

At end of day, you still need to maintain operation and management of hotel

Result of passing GOP index

Help hotel see problem

Optimize and improve, and finally realize continuous and efficient operation of hotel