KPI's for the Leisure and Hospitality industry

At Chapman Robinson and Moore, one of our specialist areas of expertise is the Leisure and Hospitality Industry.

To help our clients in this industry make their numbers work for their own success, we work with them to identify the KPI's that will help measure and drive performance.

Key Performance Indicators - they evaluate the success of an organisation or of a particular activity in which it engages. Usually a measure of past performance, and output, to identify trends and track historic performance of the business against targets, standards or predictions. They are quoted in a measurable value that demonstrates how effectively a company has achieved against key business objectives.

Key Predictive Indicators - yes similar to performance indicators, however considers the activity factors by which the business will drive its own success. They are indicators that lead the thoughts around how the business perform in the future. 

Here is a sample of the indicators we explore with our clients;

  • Revenue / usage per head of population
  • Customer Average Spend per head
  • Secondary spend per user
  • Accommodation occupancy rate
  • Food vs Beverage / Wet Sales split and Profit Margins
  • Average Room Rate - the average room revenue per occupied room in a hotel etc for a specific period. It is also known as Average daily rate
  • Revenue per Available Room.
  • Available room percentage - considering rooms not available due to reasons such as maintenance, repair, cleaning, 
  • Average cost per room
  • Wage Cost Percentage / Ratio - wage costs as a percentage of sales.
  • Labour turnover
  • Seating Efficiency - how well are tables being turned over
  • Customer satisfaction
  • Complaint resolution - satisfaction rate, time to resolve,
  • Room cancellation percentage
  • Stock Turnover - how fast is your stock is selling
  • Number of customers / guests per employee
  • Staff absence ratio (or absolute number)
  • Bookings in the current week and forthcoming period (eg month) 
  • Subsidy per visit
  • Capital recovery - the expenditure recovery rate for a capital spend item
  • Usage per opening hour
  • Energy cost per user
  • Maintenance or Cleaning cost per square metre / per room or customer
  • Advertising / Marketing Return on Investment

These are just some examples.

Some KPI's will be beneficial across any business in the industry, whereas other certain indicators will be business specific.

If we can help you make your numbers work, and share with you our expertise, then please do not hesitate to contact us.