How to increase your GOPPAR

GOPPAR. Ring any bells?

If not, perhaps it should. Understanding what GOPPAR is and how it can improve your business will help take you to the next level in the hotel world.

What is GOPPAR?

GOPPAR is an acronym that stands for Gross Operating Profit Per Available Room. That’s to say, it’s a metric that looks at the number of rooms you have available in your hotel and your gross operating profit (rather than simply the revenue from the sale of hotel rooms).

It’s a key performance indicator for hoteliers as it looks at the effectiveness of your hotel as a whole. It considers your room revenue, great, but it also looks at the entire operational performance of your hotel: it takes into account staffing costs, marketing, utilities and more.

This means your GOPPAR can help highlight which areas of your business are over performing and which are underperforming, when expenses are too high and when you can take them low, at what time of year and where.

Use the GOPPAR metric right and you’ll be able to better manage your hotel.

So, how do you find out your GOPPAR? Through a simple formula and calculation.

It’s a key performance indicator for hoteliers as it looks at the effectiveness of your hotel as a whole.

GOPPAR formula and calculation

The GOPPAR calculation is made using the following formula:

Gross Operational Profit / Available Rooms

To find your gross operational profit, you take your gross revenue and subtract your gross expenditure. There are a lot of hidden but important costs involved in running a hotel, so on top of your staffing and room expenses, don’t forget your property operation and maintenance costs, your utility bills, or your sales and marketing budget.

Divide this figure by the number of available rooms in your hotel and you have your GOPPAR. Simple, right?

How to increase your GOPPAR

Your GOPPAR can help you indicate your strengths, weaknesses, opportunities and threats. But to improve your GOPPAR, you need concrete ways and means.

That’s where Avirato comes in. Avirato can increase your hotel revenue by increasing the average spend of your guests. Not just in their rooms, but through a whole host of purchasing potential. This means a larger gross revenue, improved GOPPAR, and, of course, a healthier hotel business.

Our experts will guide you through the creation of an effective strategy to increase your hotel revenue, looking at the potential of the online store in your accommodation and utilising crosselling and upselling tools.

Our software lets you offer guests everything from excursions to services and products before they arrive. And it does so automatically, meaning you’re not just increasing revenue, you’re saving time too. Now that’s efficiency.

That said, it’s not all about you. Guests like things to be made simple. If you’re helping them better organise their stay, offering them everything they might want during that stay, and generally increasing the potential ease and enjoyment of their experience, you’re going to have one satisfied set of guests.

On top, the online store is part of Avirato PMS hotel software, and includes free expert support on how to use it, at any time, via email, live chat, web support and telephone. It’s easy to set up, simple to update, has complete security (protection from unwanted attacks and intrusions) and you can unsubscribe at any time – although once you see the results, we don’t think you will.

With Avirato’s cross selling and upselling tools, you’ll increase the average spend of your guests by 180%.

That’s right, 180%. What are you waiting for?

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