KPI for Measuring of Service Cost per Room posted in category Hotels

KPI details:

This indicator is for measuring the cost of servicing the hotel rooms. It is calculated by dividing the entire cost of hotel room service by the number of rooms being serviced, in a given time period.

Managers calculate this as part of the expenses side of the business, and it is deducted from the gross revenue per room.

Keeping Service cost per room as a KPI can help managers to monitor the changes in cost, and if in need, develop strategies on how to minimise these costs. This KPI becomes even more useful when joined with the Average Maintenance Time per room KPI. Less average time spent servicing the room usually means a lower cost of the room service.

Formula:

Total room servicing costs / Number of rooms serviced

KPI Units: Money

KPI Time Frame: update quarterly

Posted by Oana Boteanu | Help to protect community: Flag for moderation

Ideas suggested by WinningKPI community:

This KPI looks at how much it costs to service/clean the room. This cost can be calculated by using the following factors:

- Time (how long the cleaner takes to clean – how many cleaners per room?)

- Cost of cleaning products (total cost of cleaning products per month/ total number of rooms cleaned)

- Cost of laundry/washing beddings, towels etc.

- Cost of shower products

If for one day the total servicing costs were worked out at let’s assume $1000 a day, with a total of 100 rooms, the cost per room would be

1000/100 = $10 per room (this would probably be 20 minutes cleaning time + other costs)

Oana Boteanu | + | September 9, 2012 at 5:24 am

Articles in Hotels category:

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• Tips on using Hotels Key Performance Indicators (KPIs)

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