“Simplicity is the ultimate sophistication.”
Leonardo da Vinci
Sometimes the simplest math can deliver the some powerful analytics. When analyzing variances for revenue performance, there is one powerful metric that is easy to calculate and so easy to explain that everyone will be impressed when you use it. The Variance Analysis Components metric will allow you to show what portion of a variance in sales or expenses is attributed to changes in occupancy and what portion is attributed to changes in price. Download the Excel file below to follow this short video.
Download this file to follow along (.xlsx 11kb)
I use this metric in all of my Pace reports, whether I am showing Pace by Room Type or Pace by Country, this simple metric allows you to easily communicate what is working or not with the strategy.
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Robert Hernandez, Statistical Analysis and Data Mining for Revenue Growth Robert is an expert in the field of mathematical Hotel Optimization and Analytics. He has spent the last 17 years building data-driven forecasting and optimization models for companies in over 20 different industries, from tech to tourism. Robert possesses a very unique skill set including cross-disciplinary experience, advanced mathematical and analytics skills, data transformation, industry-specific knowledge and business-process improvement expertise. Robert began his career at the Walt Disney Company in Revenue Planning. Read More+