What is top line revenue in hotels?
What is top line revenue in hotels? The top line refers to a company's gross revenue or sales figure, which is reported as the first, or the top-line on a company's profit & loss statement. It reflects the hotel's total revenue from its operations before any expenses, taxes, or other deductions are considered.
How do you calculate top line revenue?
Top line revenue is calculated by adding up all of the revenue that you have generated from your customers over a certain time period. For example, if you had a total of $1,000,000 in revenue during the month of January, your top line revenue for January would be $1,000,000.
What is the top line of sales?
The top line is a pure gross sales number showing how much revenue the company brought in for a given period. As such, it does not subtract expenses, such as the cost of goods sold (COGS), incurred by the company to manufacture its goods. It does not show any reductions for discounts or returns.
What are the largest sources of hotel revenue?
When it comes to bringing in revenue, hotels typically rely on four primary sources: rooms, meetings and events, food and beverage, and ancillary services. In hospitality, typically, the performance of each pillar will determine a property's financial success.
How can I make my hotel more profitable?
- Offer Early Check-In and Late Checkout.
- Promote your food and beverage options throughout the stay.
- Offer room upgrades pre-arrival.
- Partner with local businesses to offer excursions and experiences.
- Take advantage of other upsell opportunities.
What is the largest expense in a hotel?
The Biggest Expense in a Hotel If you've guessed labor costs, you were right. On average, labor costs generate 40% of a hotel's total operating costs.