GOP (Gross Operating Profit)

Term from Hotel Management industry explained for recruiters

GOP (Gross Operating Profit) is a key measure used in hotels to show how much money a property makes after basic running costs, but before other expenses like rent and taxes. Think of it as a snapshot of how well a hotel is performing day-to-day. Hotel managers and owners use GOP to make decisions about staffing, pricing, and operations. It's one of the most important numbers in hotel management because it tells you if a hotel is being run efficiently. You might also see it called 'GOPPAR' (Gross Operating Profit Per Available Room) when it's calculated per room.

Examples in Resumes

Increased GOP by 15% through strategic cost management and revenue optimization

Managed daily operations achieving a GOP ratio of 65% above industry standard

Led team initiatives resulting in GOP growth from $2.5M to $3.2M in one year

Implemented efficiency measures that improved GOPPAR by 25% year-over-year

Typical job title: "Hotel Managers"

Also try searching for:

Hotel General Manager Revenue Manager Operations Manager Property Manager Hospitality Manager Hotel Director Hotel Financial Controller

Example Interview Questions

Senior Level Questions

Q: How would you improve a hotel's GOP if it's underperforming?

Expected Answer: A senior manager should discuss multiple strategies like revenue management, cost control measures, staff optimization, identifying new revenue streams, and analyzing competitor pricing. They should also mention the importance of maintaining service quality while improving efficiency.

Q: How do you balance cost-cutting initiatives with maintaining service quality when managing GOP?

Expected Answer: Should demonstrate understanding of strategic cost management, explaining how to identify inefficiencies without compromising guest experience, smart scheduling, training programs, and selective investment in areas that drive revenue.

Mid Level Questions

Q: What metrics do you track alongside GOP to ensure overall hotel performance?

Expected Answer: Should mention RevPAR (Revenue Per Available Room), occupancy rates, average daily rate, customer satisfaction scores, and employee turnover rates, explaining how they relate to GOP.

Q: Explain how seasonal variations affect GOP and how you manage them.

Expected Answer: Should discuss strategies for high and low seasons, including staff scheduling, marketing initiatives, maintenance timing, and special promotions to maintain profitable operations year-round.

Junior Level Questions

Q: What costs are typically included in GOP calculations?

Expected Answer: Should be able to list main operating costs like labor, supplies, utilities, marketing, and maintenance, while understanding that items like rent and taxes are not included in GOP.

Q: How can front desk staff contribute to improving GOP?

Expected Answer: Should explain basics like upselling rooms, promoting hotel services, managing costs through efficient check-in/out, and maintaining good guest relations to encourage return visits.

Experience Level Indicators

Junior (0-2 years)

  • Basic understanding of hotel operations
  • Reading financial reports
  • Cost control basics
  • Revenue tracking

Mid (2-5 years)

  • Budget management
  • Staff scheduling optimization
  • Revenue management
  • Performance analysis

Senior (5+ years)

  • Strategic financial planning
  • Market analysis
  • Asset management
  • Multi-department optimization

Red Flags to Watch For

  • Unable to explain basic financial concepts
  • No experience with hotel management software
  • Lack of understanding of seasonal business cycles
  • Poor grasp of relationship between service quality and profitability