WebFlow through and flex are two key metrics of hotel profitability. While flow through is the percentage of extra profit that flows to the bottom line from each incremental dollar of revenue, flex is the amount of profit that is flexed (or saved) when there is a revenue shortfall. The purpose of this article is to provide a simple framework to help you add … WebApr 25, 2024 · Managing flow thru in your hotel is a key attribute to understanding the profit model for your hotel. The reason it is so important to understand is the different characteristics that emerge when ...
Why Flow-Through and Flex Analysis Will Be Key Post-COVID-19
WebApr 25, 2024 · The way we calculate flow thru is straight forward. The first step is you subtract the revenues from two different periods and step two is to subtract the profit from the same two periods and the thirds step is to divide the difference in revenues by the … WebMar 25, 2011 · It is surprising how many hotel managers, operators, and owners do not have an understanding or an appreciation for flex/flow calculations. The flex and flow percentages are a measure of efficiency when managing revenue shortages or overages through the financial statement to the house profit line. While I certainly remember what … how many green berets die a year
How to flex and flow your P&L - Insights
WebDec 9, 2024 · Profitability-wise, Hilton earned $5.109 billion in 2024 and $3.687 billion in 2024. This provides us with the following flow-through formula: Flow through= (2024 … WebWhat does it show? ADR is used to calculate the average rental revenue per occupied room at a given time. To find ADR, divide your total room revenue by the number of rooms sold. For example, if you sold 5 rooms out of your 10-room hotel and your total revenue was $2,000, then ADR would be $400.Obviously, it makes sense to calculate the metric only … WebApr 23, 2024 · The biggest variable expenses are payroll at around 50% of total revenue according to a recent article by STR Trends, and it's one area of the hotel that is not easily reduced. In many hotels at ... how many green berets