13 KPIs a Hotel Business Intelligence Tool Will Help You Track

In the competitive landscape of the hospitality industry, leveraging comprehensive Key Performance Indicators (KPIs) is essential for informed decision-making and strategic planning. Leaders across operations, revenue management, food and beverage, and other departments can use data and analysis to monitor and optimize various aspects of a hotel business. 

Last week, Oteliers Jason Freed, Russell Meek and Ryan Smith walked through a demonstration of Otelier’s new business intelligence tool, IntelliSight, identifying metrics that you likely won’t see without access to a BI solution. 

By harnessing these top KPIs through a robust business intelligence tool, hotel businesses can enhance operational efficiency, drive revenue growth, and deliver exceptional guest experiences. Here are 13 performance indicators and metrics available in a modern hotel business intelligence tool: 

• No Shows. Indicates the number of reserved rooms that were not occupied by guests. 
• Out of Order Rooms. Track the number of rooms unavailable for booking due to maintenance or other issues. 
• Complimentary (Comp) Rooms. Measure the number of rooms provided to guests free of charge. 
• Gross Revenue. Calculate the total revenue generated by your hotel. 
• Revenue Variance to Budget. Compare actual revenue performance against budgeted revenue. 
• Reputation Scores. Integrate data from platforms like TripAdvisor, Google, and Booking.com to monitor and analyze your hotel's reputation over time. 
• Total Expenses. Summarize all expenses incurred by your hotel. 
• Miscellaneous Income. Capture additional sources of income beyond room and F&B revenue. 
• Labor Metrics. Data like cost per room sold, percentage of revenue, overtime hours, etc., provide insights into labor efficiency and costs associated with room sales. 
• Pickup Analysis. Analyze changes in booking and revenue pickup over specified timeframes and across various segments. 
• Market Mix. Evaluate the composition of business across different market segments and analyze hotel performance within competitive sets and market segments. 
• Room Revenue Contribution. See each hotel's contribution to overall room revenue within your portfolio. 
• Business Summary. See a quick overview of business performance, including P&L KPIs, revenue KPIs, reputation KPIs, and labor metrics. 

These performance indicators and metrics offer comprehensive insights into various aspects of hotel operations, revenue generation, and customer satisfaction, enabling informed decision-making and strategic planning for hotel management. 

Since re-platforming its BI tools, Otelier’s product team has spent countless hours building a backend architecture that makes integrating new data sources significantly faster and paves the way for future innovations such as artificial intelligence shaping the way we analyze data and deliver insights.  

There are hundreds of hotels using Otelier IntelliSight today. At Brittain Resorts & Hotels, Analytics & AI Manager Jeremy Slone is focused on how artificial intelligence will soon impact hospitality business intelligence.  

“A big push for us has been taking all the data we have coming in and supplementing it with other sources of data,” he says. “With generative AI, it's not just graphs and charts, but we can do short analysis of those numbers and put them in a more common language.” 

Are you using the above performance metrics to make smarter decisions and ensure your business is prepared for the future? If not, let us show you what you’re missing.