What is Gross Profit?
What it is
We define gross profit simply as what’s left for the hotel after spending on cost of sale (more commonly known as commissions paid to re-sellers) for selling rooms.
Most hotel owners find it challenging to hire and retain good revenue managers that can help them maximize ADR yield. The hotel has several sales channels to choose from, with costs of sale varying dramatically with each channel. Savvy revenue managers recognize that these costs can be managed through prioritization of the distribution channels as well as implementing strategies to move repeat buyers from expensive channels to more profitable channels. The challenge is eliminating the learning curve and executing strategies that work – resulting in the highest gross profit for the hotel.
Another challenge is choosing and keeping up with all the latest technology and digital marketing best practices required to capture new revenue (through acquiring new guests) as well as ensure returning guests book most profitably.
By working with thousands of hoteliers, we have built technology and digital marketing best practices that simplify the headache that is selling rooms online with emphasis on both revenue and margin. Through our gross profit coaches we help deliver “value-to-owner” bookings.
Go ahead, meet with one of our coaches and find out how we can help your hotel generate more gross profit, to the delight of the hotel owner and leadership team.