GOPPAR (Gross Operating Profit Per Available Room) is a key measurement tool used in the hotel industry to understand how well a hotel is performing financially. Unlike simpler metrics that only look at room revenue, GOPPAR takes into account all of a hotel's earnings and costs for each available room, whether it was occupied or not. This gives managers and owners a clearer picture of how profitable their hotel really is. It's similar to other hotel metrics like RevPAR (Revenue Per Available Room), but GOPPAR is considered more comprehensive because it includes all revenue sources like restaurants, spa services, and events, while also considering operating costs.
Improved GOPPAR by 25% through strategic cost management and revenue optimization initiatives
Analyzed monthly GOPPAR trends to develop effective pricing strategies
Led team initiatives resulting in GOPPAR growth from $45 to $65 over two years
Typical job title: "Hotel Revenue Managers"
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Q: How would you develop a strategy to improve GOPPAR in a struggling hotel?
Expected Answer: A senior candidate should discuss analyzing all revenue streams, identifying cost-saving opportunities, implementing efficient staffing models, and developing strategies for increasing non-room revenue while maintaining service quality.
Q: How do you balance GOPPAR optimization with guest satisfaction?
Expected Answer: Should explain how to find the sweet spot between cost control and service quality, using examples of successful programs that maintained guest satisfaction while improving profitability.
Q: What factors affect GOPPAR and how would you monitor them?
Expected Answer: Should mention room rates, occupancy rates, operating costs, additional revenue sources, and demonstrate understanding of how to track these through regular reporting and analysis.
Q: How does seasonality impact GOPPAR and how do you adjust for it?
Expected Answer: Should discuss seasonal pricing strategies, cost management during low seasons, and methods to generate additional revenue during off-peak periods.
Q: Can you explain what GOPPAR is and why it's important?
Expected Answer: Should be able to explain that it's profit per available room and why it's more comprehensive than just looking at revenue, showing basic understanding of hotel profitability metrics.
Q: How would you calculate GOPPAR?
Expected Answer: Should explain that it's total gross operating profit divided by the number of available rooms in a period, demonstrating basic mathematical understanding of the metric.