The first step in all areas of revenue management is to start measuring. Start to look at your data and calculate the main KPI’s you would like to follow.
For M&E you want to know the revenue generated per day in your meeting & events department. This number can be divided with your number of square meters rentable room area which will give you your “Revenue per square meter”. It can also be divided with number of actual delegates which will give you “Revenue per delegate”. Other KPI’s to look at is delegates per square meter which would give you an idea of the utilization of your meeting space and give you a kind of an occupancy number for your meeting facilities.
In the restaurant your daily revenue is of course crucial, this number most restaurants know. Another measure that is important if you want to work with revenue management is number of guests. Unfortunately, there are surprisingly few restaurants who track this. You need to know how many guests you have had in order to calculate KPI’s such as average check or seating’s (the occupancy for your restaurant). The number one KPI in the restaurant is REVPAS, revenue per available seat and this should be the number one goal for all employees to increase.
When you have all this in place the next step is to establish a good benchmark. How are your KPI’s holding up compared to the market around you and to your closest competitors? Do you follow the trend in your market? If not, why? Do you see any opportunities?
Very quickly you will find ways to tweak your business a little to make more money bottom line!
Looking forward to talking more about benchmarking of the most important industry KPI’s when we meet in September.