Hotel operational analysis and its importance in the GOP

Hotel operational analysis plays a fundamental role in improving GOP (Gross Operating Profit) results. Operational analysis involves examining and evaluating different aspects of the hotel’s operation, such as revenue, operating costs, and efficiency in service delivery.

In this article, we will explain the importance of operational analysis and provide recommendations to improve GOP Hotelero results.

THE IMPORTANCE OF OPERATIONAL ANALYSIS TO IMPROVE THE GOP IN HOTELS

Hotel operational analysis involves evaluating and optimizing hotel operational processes and activities to improve efficiency. It includes the analysis of the income generated by the sales of rooms, food and beverages, wellness and other services. But not only that, but also the control of direct operating costs and efficiency in the use of resources.

On the other hand, operational analysis also involves monitoring and measuring key performance indicators (KPIs). Such is the case of RevPAR (Revenue per Available Room), GOPPAR (Gross Operating Profit per Available Room) and EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization).

Carrying out a hotel operational analysis is essential to improve GOP results. And improving GOP results means that the hotel has good operational performance and, therefore, is generating profitability. Well, let’s remember that the GOP (Gross Operating Profit) is the gross operating profit or the gross operating result. That is, it is an indicator that measures the profitability of different areas: F&B, human resources, supplies, operations, marketing, revenue management, among others.

In this sense, operational analysis helps us identify those areas where there are weaknesses, where more is being spent. And in this way we can look for solutions to improve the functioning in these problem areas.

OTHER ADVANTAGES OF HOTEL OPERATIONAL ANALYSIS

Now in more specific terms, carrying out hotel operation studies is key to:

• Identify areas of improvement to take strategic measures.
• Reduce unnecessary operating costs, that is, keep cost control.
• Optimization of income management for different services.
• Improved operational efficiency. Operational analysis helps identify and eliminate bottlenecks in operational processes, which can improve efficiency in service delivery and reduce costs.
• Opens opportunities to attract investors and lenders. Since this analysis helps increase the GOP, it allows you to show a profitable and solid business. This generates increased investor confidence.
• Perform benchmarking and comparison. Owners can evaluate how their hotel performs compared to the competition, which can lead to the identification of improvement opportunities to stand out in the market.

HOW TO CARRY OUT AN OPERATIONAL ANALYSIS IN A HOTEL

When carrying out an operational analysis in hotels, you need to take the following steps into account:

DEFINE THE OBJECTIVES OF THE OPERATIONAL ANALYSIS

The first thing to do is identify the objectives. In any hotel operational analysis, the main objectives are to detect areas for improvement and evaluate the operational efficiency of the services.

COLLECT AND ANALYZE DATA

Determine what data is necessary for the analysis. An example would be room sales revenue, F&B, operating costs, key performance indicators (KPIs), and customer satisfaction. This data can be obtained through hotel management systems, accounting records, and customer satisfaction surveys.

Then, organize the data obtained in a structured and coherent way to facilitate analysis. You can use data analysis tools and techniques, such as pivot tables, graphs, and statistical calculations, to obtain meaningful and understandable information.

EVALUATE INCOME BY SEPARATE SEGMENT

This step in the hotel operational analysis is important, as it breaks down the revenue generated by rooms, food and beverages, and additional services. This, in turn, helps understand which areas contribute the most to total revenue. Then, identify the most profitable segments and those that can benefit from improvements in pricing and promotion strategy.

EVALUATE INCOME BY SEPARATE SEGMENT

This step in the hotel operational analysis is important, as it breaks down the revenue generated by rooms, food and beverages, and additional services. This, in turn, helps understand which areas contribute the most to total revenue. Then, identify the most profitable segments and those that can benefit from improvements in pricing and promotion strategy.

EVALUATE PRICE MANAGEMENT

Analyze the pricing structure and rates applied for each segment and time period. Next, review your pricing strategy and look for opportunities to adjust prices based on demand and competition.

IDENTIFY AND CATEGORIZE COSTS

It is also important to classify the different types of operating costs, such as personnel costs, supplies, utilities and maintenance, among others. This will help understand where the biggest expenses are being incurred and where adjustments can be made to improve efficiency.

ANALYZE COSTS IN RELATION TO INCOME

The last step in the hotel operational analysis is to compare the overall costs with the revenue generated. In this way, the efficiency and profitability of each area of the hotel is evaluated. Look for areas where costs can be reduced without compromising quality of service.

STRATEGIES TO IMPROVE GOP RESULTS IN HOTELS

Below are some strategies to improve the hotel GOP:

• Carry out good inventory management to make the most of rooms and optimize prices.
• Automation of operational processes through the use of intelligent technologies. Implementing the use of data and home automation programs can boost operational efficiency. Among these technologies are tools such as the PMS (Property Management System) and the RMS (Revenue Management System).
• Implement predictive analytics using artificial intelligence. Thanks to these technologies, millions of data about customers can be processed to better understand their behavior. This helps adjust costs by correctly sizing the hotel’s operations, F&B supplies, for example.
• Provide ongoing training and development for your staff. Having trained staff helps improve their efficiency and skills in providing services. This can have a positive impact on GOP Hotelero’s results.
• Make sure you are energy efficient. Energy efficiency, through the adoption of sustainable practices and eco-friendly technologies, not only reduces operating costs, but also demonstrates environmental responsibility. This may attract environmentally conscious customers.
• Review and adjust costs for online distribution. Implement adjustments to the distribution mix by promoting direct channels such as the website, messaging and social networks. It is also important to see which indirect channels generate the most income to focus on those.

CONCLUSION

In short, operational efficiency is the key to improving GOP results in the hospitality industry. And for efficiency, hotel operational analysis is essential. However, this process can be a bit complex and requires professional help. This is where a hotel consultancy like IHCS can be a valuable partner.

Finally, operational analysis plays a crucial role in evaluating and optimizing revenue, operating costs and efficiency in service delivery. In this way, hotels can maximize their profitability and improve their financial performance.