How to read the Manager - Flash Report: Key Metrics, their impact on efficiency and operating Profit (Opera PMS)

The Manager-Flash report provides important information about a hotel's key performance indicators (KPIs) that directly affect its operating profit and revenue. In this article, we will look at how each of these indicators affects the efficiency and profitability of a hotel, as well as give examples of how to read and interpret the numbers. At the end of this article, we will also discuss which reports can be used to decode metrics using Opera PMS as an example, and how using interactive dashboards can improve the efficiency of data analysis.

Key indicators and their impact

1. Total Rooms in Hotel (TRH): This indicator shows the total number of rooms available in the hotel. It is important for understanding the total capacity of the hotel and planning resources.

2. Total Rooms in Hotel minus OOO Rooms (TRH-OOO): This indicator shows the number of rooms available for booking, excluding rooms that are under renovation. The fewer unavailable rooms, the higher the potential revenue of the hotel.

3. Out of Order Rooms (OOO): Rooms that are temporarily unavailable for booking due to repairs or other reasons. A high percentage of unavailable rooms can reduce overall revenue and employment.

4. Out of Service Rooms (OOS): Rooms that cannot be used for various reasons, such as requiring major repairs. It also reduces availability and potential revenue.

Check-in and availability of rooms

1. Rooms Occupied (RO): The number of rooms that are actually occupied by guests. A high level of employment directly increases room revenue.

Example: If a hotel has 100 rooms and 80 of them are occupied, RO = 80. This means that 80% of the rooms generate revenue.

2. Rooms Occupied Day Use (RODU): Rooms that are occupied only during the day and not at night. This can increase revenue if the hotel offers daily rates.

3. % Rooms Occupied (%RO): The percentage of rooms that are occupied out of the total available space. A high occupancy rate indicates efficient use of the hotel's resources.

Example: If a hotel has 100 rooms and 80 of them are occupied, %RO = 80%.

4. Available Rooms (AR): Rooms that are available for occupancy. The more rooms available, the higher the potential for increased income.

5. Available Rooms minus OOO Rooms (AR-OOO): Rooms available for occupancy minus unavailable rooms. This is an indicator of actual availability for booking.

6. Complimentary Rooms (Comp): Rooms provided for free. Although they do not generate direct revenue, they can increase customer loyalty and improve the reputation of the hotel.

7. House Use Rooms (HU): Rooms used for the needs of the hotel itself. This reduces the number of rooms available for booking, but may be necessary for operational needs.

8. Rooms Occupied minus Comp and House Use (ROMCHU): The actual number of occupied rooms, excluding free and used rooms by the hotel. This is an indicator of real income-generating employment.

Revenue and traffic statistics

1. Average Daily Rate (ADR): The average cost of an occupied room per day. A high ADR indicates the hotel's ability to attract customers who are willing to pay more.

Example: If the daily room revenue is 8000 rubles and 80 rooms are occupied, ADR = 8000 / 80 = 100 rubles.

2. Revenue per Available Room (RevPAR): Revenue from one available room is calculated as total revenue from rooms divided by the number of available rooms. This is a key performance indicator.

Example: If room revenue is 8000 rubles and 100 rooms are available, RevPAR = 8000 / 100 = 80 rubles.

3. Rooms Revenue (RR): Total revenue generated from the sale of rooms. This is the main source of income for most hotels.

4. Food & Beverage Revenue (F&B R): Income from the hotel's restaurant and bar. This is an important additional source of income.

5. Other Revenue (OR): Income from other hotel services that are not directly related to the number of rooms or the restaurant. This may include spa services, conference room rentals, etc.

6. Miscellaneous Revenue (MR): Various additional incomes. This may include income from parking, gift shops, etc.

7. Total Revenue (TR): Total revenue from all sources. This is a key indicator of the overall financial performance of the hotel.

Resident statistics

1. In House Adults (IHA): The number of adults staying in the hotel. This helps you understand the demographic composition of your guests.

2. In House Children (IHC): The number of children staying in the hotel. This is important for planning additional services and events.

3. Total in House Persons (TIHP): Total number of people staying in the hotel. This is an indicator of the overall occupancy of the hotel.

4. Individual Persons in House (IPH): The number of guests staying individually, not in groups or blocks. This helps you understand the preferences of individual travelers.

5. Block Person in House (BPH): The number of guests staying in groups. This is important for event planning and group bookings.

Understanding Columns: Day, Month, Year, and Last Year

1. Day: This column provides metrics for the current day. It helps you understand your daily performance and make immediate adjustments if necessary.

2. Month: This column aggregates metrics for the current month. It offers a broader overview of the hotel's performance over a longer period, allowing you to analyze trends and compare monthly data.

3. Year: This column shows indicators for the current year. It is useful for long-term planning and evaluating the overall performance of the hotel.

4. Last year (LY): This column provides indicators for the same period last year. Comparing current data with last year's data helps you identify growth trends, seasonal fluctuations, and areas that need improvement.

Basic methodology for calculating key indicators

1. Occupancy (%): Calculated as % of occupied rooms. This indicator is obtained by the weighted average of the number-nights sold divided by the budget value of the number-nights. It is important to keep in mind that if the PMS data does not match the budget values, this indicator may differ between PMS reports and dashboards.

2. ADR: Calculated as the average daily rate obtained by dividing room revenue by the number of occupied rooms (sold rooms).

3. RevPAR: Calculated as revenue per available room, obtained by dividing the revenue from rooms by the number of available rooms.

4. Room Revenue: Total revenue generated from the sale of rooms.

5. Food & Beverage Revenue: Income from the hotel's restaurant and bar.

6. Other Revenue: Income from other hotel services that are not directly related to the number of rooms or the restaurant.

7. Total Revenue : Total income from all sources.

Reports in Opera PMS for decoding metrics

Opera PMS (Property Management System) provides various reports that help decipher and analyze key hotel performance indicators. Here are some of them::

1. Daily Flash Report: A daily report that provides a summary of key indicators such as employment, income, ADR and RevPAR. This report helps managers track their daily performance.

2. Occupancy Report: An occupancy report that shows the number of occupied, available, and unavailable rooms. It helps you analyze the employment rate and identify trends.

3. Revenue Report: An income report that provides detailed information about room, food, and beverage revenue, as well as other income. This report is important for analyzing financial performance.

4. Forecast Report: A forecast report that shows expected indicators based on current data and historical trends. It helps you plan and make strategic decisions.

5. Budget vs. Actual Report: A report that compares budget indicators with actual data. It helps to identify deviations and take corrective measures.

6. Guest Statistics Report: A guest statistics report that shows the number of adults, children, individual and group guests. This report is important for understanding the demographic composition of guests and planning services.

Improve efficiency with interactive dashboards

To achieve more efficient and accurate data analysis, we recommend using interactive dashboards integrated with PMS at the database level. Interactive dashboards allow you to:

- Visualize data in real time: This helps you quickly identify trends and make operational decisions.

- Analyze data by various parameters: You can easily filter and sort data by various metrics, such as employment, income, ADR, and RevPAR.

- Compare current indicators with historical data: This helps to identify seasonal fluctuations and evaluate the effectiveness of strategies.

- Create customized reports: You can create reports tailored to your hotel's specific needs.

Our services

Our team has already implemented similar projects and is ready to develop an individual solution for your company. We offer:

- Integration of interactive dashboards with your PMS: This will allow you to get up-to-date data in real time.

- Configuring and optimizing reports: We will help you set up your reports to best meet your business needs.

- Training and support: We will provide training for your staff and continuous technical support.

Comprehensive corporate reporting and dashboards

We develop a methodology and policy for comprehensive corporate reporting and dashboards, ranging from the VIP level (CEO and Deputy CEO) to dashboards for line managers. This allows each level of management to get relevant information for making informed decisions.

Our experience

We have more than 8 years of experience in the tourism and hospitality industry, which allows us to deeply understand the needs and challenges that hotels face. Our solutions have already helped many companies improve efficiency and profitability.

Contact us to discuss how we can help you improve the efficiency and profitability of your hotel with our solutions.