CPOR stands for Cost per Occupied Room and is one of the most important metrics in the hotel industry. It is a measure of the total cost of operating a hotel divided by the number of occupied rooms for a given time period. CPOR is used to track the efficiency of hotel operations and compare performance against competitors.
The most common causes of a high CPOR are:
CPOR is calculated by dividing total operating expenses by total number of occupied rooms.
The CPOR formula is: CPOR = Total Departmental Operating Expenses / Total Occupied Rooms
For example, if a hotel has total costs of $100,000 and has 500 occupied rooms, then the CPOR would be $200 ($100,000 divided by 500).
To improve CPOR at a hotel property, hoteliers can look for ways to reduce operating expenses, such as through energy efficiency measures, smart staff scheduling, and renegotiating vendor contracts.
Hoteliers can also use technology solutions like Contactless Check-In and Guest Messaging to improve overall staff efficiency and bring down costs.
Contactless check-in systems do this by significantly reducing the amount of time spent by staff checking guests in. This lowers the number of agents needed at the front desk and has the added benefits of reducing waiting times and improving customer satisfaction.
Guest messaging solutions enable hoteliers to communicate more effectively with guests through both direct and broadcast messages and have a similar efficiency-enhancing effect to Contactless Check-In. Leading guest messaging solutions will also leverage AI responses to answer some of the most common guest questions (e.g., What is the WiFi password?). This reduces the amount of time that front desk agents need to spend answering calls and emails.
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