INSTITUTIONAL CONSULTING
Economic and health-related metrics to measure success
What should we measure to gain the most comprehensive insight into our success?
Traditional metrics focus on total hotel revenue management, such as occupancy rate (OCC), revenue per available room (RevPAR), and average daily rate (ADR). These metrics, which use guest rooms as the main economic unit, are no longer sufficient. Other metrics use a broader approach, combining several revenue streams such as food and beverage sales, function space rentals, catering services, spa services, retail sales, and golf fees.
Another approach involves taking a closer look at holistic KPIs (key performance indicators), such as GOPPAR (gross operating profit per available room), TRevPAR (total revenue per available room), and GOP I and GOP II (gross operating profit). Yet another approach focuses on the return on invested capital using for example the IRR (Internal Rate of Return) or others. Typically, guests' subjective satisfaction with the hotel is measured using questionnaires, and in rare cases, interviews. It is not reliable to identify the top five or ten biomarkers for health-related outcomes or specialized longevity biomarkers and base a prognosis or treatment plan on them. Nevertheless, a few will be mentioned here exemplarily, such as glucose level (HbA1c), inflammatory markers (CRP and possibly RF [Rheumatoid Factor]), cholesterol (lipoprotein(a)), hormones (DHEA and melatonin), and albumin. Other examples include bone density (DEXA scan), biological age, oxidative stress (ROS), VO2 max and many other results from medical imaging.
In healthcare management, hotels that excel in this field are distinguished by their commitment to meticulous process indicators, which encompass fiscal circumstances and medical concerns. While this makes medical hotels more complex, it's important to note that revenue from medical treatments can surpass that from renting out guest rooms.