In hotel metrics, RevPAR and ADR often steal the spotlight, but Cost Per Occupied Room (CPOR) deserves more attention.
NB: This is an article from Topline Revenue, one of our Expert Partners
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This metric doesn’t just show you the cost of keeping a room filled – it gives you insight into how efficiently you’re running your operations.
Inspired by SiteMinder’s guide on CPOR, we’re giving it a closer look. We’ll explore practical ways to leverage CPOR to drive profits and streamline operations. Spoiler: CPOR isn’t just for data enthusiasts. With some strategic insights, it can become a core part of your revenue management strategy, helping you make smarter, more profitable decisions.
CPOR Essentials: A Practical Measure of Efficiency
You’re probably aware of your CPOR, but do you really know what it’s telling you? CPOR isn’t just about tracking costs; it’s a reflection of how well (or poorly) you’re managing your hotel’s daily operations. Think of it as the pulse check on your efficiency. A lower CPOR indicates you’re getting a handle on costs, but if it’s creeping up? That’s a red flag.
Whether you’re managing a hotel chain or a cozy independent property, CPOR matters. Major brands might have the resources to cover up any issues they have with their CPOR, but for independent hotels, managing this cost well is crucial—it can be the difference between making a profit and losing money.
Fine-Tuning CPOR with Strategic Adjustments
Cutting CPOR doesn’t mean cutting corners—it’s all about getting more bang for your buck. Here’s how to take your cost-savings game to the next level:
Dynamic Housekeeping Models
Housekeeping is often a big CPOR contributor. Consider offering tiered housekeeping services. For example, longer-stay guests might prefer light housekeeping every other day, rather than daily. You’ll save on labor and supplies without lowering service standards.
Customized Energy Management
Centralized energy systems? Sure, they’re convenient, but are they really efficient? Think about installing room-specific energy controls like smart thermostats or occupancy sensors. These nifty gadgets can ensure you’re only using energy when and where it’s needed, which can bring down utility costs significantly over time, directly impacting CPOR.
Flexible Staffing Based on Occupancy Trends
Staffing is another area where businesses tend to overspend. Instead of rigid weekly schedules, try aligning your staffing levels with actual demand. Historical data and local event calendars can help you predict occupancy trends, so you’re not overstaffing during slow periods. Less idle time for staff means less wasted labor costs—and a leaner CPOR.
