What are the key performance indicators (KPIs) for front office operations and how do you track them?

1 Occupancy rate

Occupancy rate is the percentage of available rooms that are occupied by guests in a given period. It is one of the most basic and essential KPIs for front office operations, as it reflects the demand and utilization of your hotel. To calculate occupancy rate, divide the number of occupied rooms by the number of available rooms and multiply by 100. A high occupancy rate indicates that your hotel is popular and profitable, while a low occupancy rate may signal a need to adjust your pricing, marketing, or service strategies.

2 Average daily rate

Average daily rate (ADR) is the average revenue generated per occupied room in a given period. It is another key KPI for front office operations, as it reflects the pricing and positioning of your hotel. To calculate ADR, divide the total room revenue by the number of occupied rooms. A high ADR indicates that your hotel is able to charge a premium price and attract high-value guests, while a low ADR may indicate a need to improve your product, service, or reputation.

3 Revenue per available room

Revenue per available room (RevPAR) is the average revenue generated per available room in a given period. It is a more comprehensive KPI for front office operations, as it combines occupancy rate and ADR to measure the overall performance and efficiency of your hotel. To calculate RevPAR, divide the total room revenue by the number of available rooms or multiply occupancy rate by ADR. A high RevPAR indicates that your hotel is maximizing its revenue potential and market share, while a low RevPAR may indicate a need to optimize your occupancy and pricing strategies.

4 Guest satisfaction score

Guest satisfaction score (GSS) is the average rating given by guests to your hotel based on their experience and feedback. It is a crucial KPI for front office operations, as it reflects the quality and consistency of your guest service. To measure GSS, you can use various methods, such as surveys, reviews, social media, or mystery shopping. A high GSS indicates that your hotel is meeting or exceeding your guests' expectations and creating loyalty and referrals, while a low GSS may indicate a need to address your guests' complaints and improve your service standards.

5 Front office productivity

Front office productivity is the ratio of output to input of your front office staff in terms of tasks, time, and resources. It is an important KPI for front office operations, as it reflects the efficiency and effectiveness of your front office processes and systems. To measure front office productivity, you can use various indicators, such as check-in and check-out time, reservation accuracy, upselling rate, or guest requests resolution. A high front office productivity indicates that your staff is well-trained, motivated, and equipped to handle your front office operations, while a low front office productivity may indicate a need to review your staffing, training, or technology.

6 How to track KPIs

To track your KPIs for front office operations, you need to collect and analyze data from various sources, such as your property management system (PMS), your revenue management system (RMS), your customer relationship management (CRM), or your online reputation management (ORM). You can use various tools, such as spreadsheets, dashboards, or reports, to organize and visualize your data and compare it with your goals and benchmarks. You can also use various techniques, such as segmentation, correlation, or forecasting, to identify trends, patterns, or opportunities in your data and make informed decisions.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?