ANALYSIS OF PERFORMANCE INDICATORS FROM

BALANCE SCORECARD

[Name of the Student]

[Name of the Institution]

INTRODUCTION
The main objective of the current report is to evaluate Key Performance Indicators (KPIs) of
a virtual resort from the balanced scorecard to analyze the performance of the hotel based on
results from the balanced scorecard to introduce new products and services by considering
past performance of the hotel.

REVIEW OF KEY PERFORMANCE INDICATORS

The hotel has a total of 13 teams of which 6 teams are working in Hotel Unicorn. While they
remain, teams worked in Hotel Swan.

REVPAR

Revenue Per Available Room (REVPAR) is a kind of performance indicator that is used
within the hospitability industry for measuring the ability of the property to fill its rooms
available at an average rate (Chattopadhyay & Mitra, 2019).

As per the results of the balanced scorecard of the hotel Unicorn, the RAVPAR of the hotel is
$54.99 for team1, $111.71 for team 2, $47.85 for team 3, $141.88 for team 4, $73.72 for team
5, and $25.23 for team 6,

As per these results team, 2 and team 4 ($111.71 and $141.88) have the highest REVPAR
and positioned themselves on rank 1 and 2. While Team 3 and Team 6 have the lowest
($47.85, and $25.23) REVPAR and position themselves on rank 9 and 12. Team 2 and team 4
performed better than the market average as their REVPAR is higher than 100.

On the other hand, Hotel Swan River balanced scorecard results, REVPAR was $28.94 for
team 7, $49.44 for team 8, $102.17 for team 9, $90.26 for team 10, $82.38 for team 11,
$31.05 for team 12, and 25.23 for team 13. which means team 9 and team 10 has the highest
performance ($102.17 and $90.26).

Gross Operating Profit

The Gross Operating Profit (GOP) is used to measure the operating profitability of a hotel to
know the percentage of return earned by the hotel after subtracting all their operating
expenses (Landman, 2021).

As per the results of the balanced scorecard, the average GOP of Hotel Unicorn is 23.28% for
team 1, 37.60% for team 2, -25.91% for team 3, 28.37% for team 4, 31.31% for team 5 and-
16.95% for team 6. As per the given results of GOP, team 2 has earned a higher gross profit
return (37.60%) while team 5 has the second-highest return (31.31%). On the other hand,
team 3 and team 6 has negative GOP which means their operating expense higher than the
revenue generated and going through losses.

While the results of Hotel Swan River show the GOP of 8.94% for team 7, -74.36% for team
8, 32.04% for team 9, 27.97% for team 10, 30.44% for team 11, 20.74% for team 12, and -
16.95% for team 13 which means team 9 and 11 has the highest return.

Market Share

Market share indicates the percentage of the market that is controlled by a particular company
or product (HAYES, 2019).

As per the results of the balanced scorecard, there are two types of market share disclosed by
the hotel resort which include Rooms Market Share and Relative Market Share. The Rooms
Market Share (RMS) and Relative Market Share for hotel unicorn was 11.19% and 7.9% for
team 1, 20.40% RMS and 14.4% Relative Market Share for team 2, 8.19%, and 5.8% for
team 3, 18.53% RMS and 13.1% Relative Market Share for team 4, 10.32% and 7.3% for
team 5. While team 6 has 4.89% RMS and 3.5% Relative Market Share. As per these results
it can be stated Team 2 and team 4 have the highest Room Market Share and Relative Market
Share which indicate their better performance than the rest of the team. While team 3 and
team 6 have the lowest Room Market Share and Relative Market Share which indicate worse
performance than the rest of the teams.

Moreover, Hotel Swan River balanced scorecard results show that Rooms Market Share and
Relative Market Shares are 4.40% and 3.1% for team 7, 9.04%, and 6.4% for team 8, 14.43%
and 10.2% for team 9, 14.15%and 10.0% for team 10, 15.16 % and 10.7% for team 11,
5.75% and 4.1% for team 12 and 4.89% and 3.5% for team 13, which means team 9,10 and
11 have highest market share.

Return on Capital Employed

The Return on Capital Employed (ROCE) indicates the ability of the company to earn profit
over the amount of capital employees (Camelia, 2013).

As per balance scorecard results for Hotel Unicorn, the ROCE of hotel was -0.48% for team
1, 0.48% for team 2, -1.86% for team 3, 0.34% for team 4, -0.13% for team 5 and -0.78% for
team 6. These results indicate that only team 2 and team 4 (0.48% and 0.34%) performed
better and provided positive ROCE while the rest of the team provided negative ROCE.

As per Hotel Swan River balance scorecard, ROCE was -0.64% for team 7, -3.92% for team
8, 0.51% for team 9, 0.00% for team 10, 0.18% for team 11, -0.53% for team 12, and -0.78%
for team 13, which indicate better performance of team 9 and team 11 (0.51% and 0.18%).

Guest Satisfaction

As per the Balance Scorecard results of Hotel Unicorn, the percentage of guest satisfaction
was 62% for teams 1, 2, and 3, 61% for team 4, 51% for team 5, and 42% for team 6 which
means guest of first three teams are highly satisfied.

While Hotel Swan River results show that guest satisfaction was 42% for team 7, 60% for
team 8, 62% for team 9 and 10, 61% for team 11, 44% for team 12, and 42% for team 13,
which means team 9, 10, and 11 has highly satisfied guests.

Staff Satisfaction

As per balance scorecard results, the staff satisfaction was termed as staff relationship survey.
The Hotel Unicorn staff satisfaction was 74% for team 1, 89% for team 2, 86% for team 3,
91% for team 4, 80% for team 5, and 57% for team 6, which means the staff of team 2, 3 and
4 are highly satisfied.

On the other hand, the staff satisfaction for hotel swan river was 58% for team 7, 83% for
team 8, 88% for team 9, 90% for team 10, 87% for team 11, 61% for team 12, and 57% for
team 13, which mean staff of team 9, 10 and 11 are highly satisfied.

Average Daily Rate (ADR)

The ADR is used to measure the average revenue per day earned from each occupied room
(Hargrave, 2020).

As per the given results, the ADR of hotel unicorn was $70.23 for team 1, $126.64 for team
2, $81.39 for team 3, $143.51 for team 4, $93.35 for team 5, and $85.15 for team 6, which
means, team 2 and team 4 has the highest revenue per room from each occupied room while
team 1 has lowest ADR.
On the other hand, the ADR of hotel swan river was $87.15 for team 7, $80.39 for team 8,
$115.43 for team 9, $113.77 for team 10, $106.54 for team 11, $84.34 for team 12, and
$85.15 for team 13. The given result show higher return per day of team 9, 10, and 11.

Occupancy Rate

The occupancy rate is used to measure the percentage of rooms occupied within a particular
period (Abdullah & Haan, 2012).

As per the given results, the occupancy rate hotel unicorn was 78.30% for team 1 88.21% for
team 2, 58.79% for team 3, 98,86% for team 4, 78.97% for team 5, 29.63% for team 6 which
means rooms of team 2 and team 4 was highly occupied during the second year.

On the other hand, the occupancy rate of hotel swan river was 33.20% for team 7, 61.50% for
team 8, 88.51% for team 9, 79.34% for team 10, 77.32% for team 11, 36.81% for team 12,
and 29.63% for team 13, which mean the rooms of team 9, 10 and 11 was highly occupied
during the second year.

Public Awareness

Public awareness is used to measure the level of understanding, acting, and choosing of a
particular hotel. It is measured on a 100 Likert scale (HAYES, 2019).

The public awareness of hotel unicorns was 50.57 for team 1, 49.96 for team 2, 52.86 for
team 3, 56.58 for team 4, 38.18 for team 5, and 44.82 for team 6 which indicate higher public
awareness for team 3 and team 4.

While the public awareness for hotel swan river was 41.26 for team 7, 33.99 for team 8,
48.09 for team 9, 44.43 for team 10, 51.40 for team 11, 45.98 for team 12, and 44.82 for team
13 which indicate higher public awareness for team 9 and team 11.

Hotel Quality Index (HQI)

The Hotel Quality Index (HQI) is used to measure the market position and market reputation
of a hotel (Beonprice, 2019).

The HQI of hotel unicorn was 27.89 for team 1, 29.90 for team 2, 23.34 for team 3, 33.07 for
team 4, 26.34 for team 5, and 8.68 for team 6 which indicate higher market reputation of
team 2 and team 4.
As per the result of hotel swan river, the HQI was 13.45 for team 7, 30.39 for team 8, 31.77
for team 9, 23.76 for team 10, 27.61 for team 11, 13.72 for team 12, and 8.68 for team 13,
which means team 8 (30.39) and team 9 (31.77) has a higher market reputation.

Annual Staff Turnover

The Annual Staff Turnover indicates the percentage of employees who leave the hotel during
a particular year (Clayton, 2021).

The results of hotel unicorn show Annual Staff Turnover was 70.27% for team 1, 28.57% for
team 2, 0.00% for team 3, 20.97% for team 4, 37.14% for team 5, and 104.00% for team 6.

On the other hand, Annual Staff Turnover for hotel swan river was 68.42% for team 7,
56.52% for team 8, 28.89% for team 9, 25.24% for team 10, 18.06% for team 11, 48.15% for
team 12, and 104% for team 13.

The overall results show better performance of teams 2, 3, and 4 from hotel unicorn as it has
better results on the majority of indicators. while teams 9, 10, and 11 show better
performance due to better results on the majority of indicators.
REFERENCES
Abdullah, A.A. and Haan, M.H., 2012. The internal success factor of hotel occupancy
rate. International Journal of Business and Social Science, 3(22).

Beonprice (2019). Beonprice Redesigns Hotel Quality Score to Improve Revenue Strategies.
[online] www.hotelnewsresource.com. Available at:
https://www.hotelnewsresource.com/article108398.html

Camelia, B., 2013. Analysis model for return on capital employed. Annals of the “Constantin
Brâncuşi” University of Târgu Jiu, Economy Series, (1), pp.82-87.

Chattopadhyay, M. and Mitra, S.K., 2019. Determinants of revenue per available room:
Influential roles of average daily rate, demand, seasonality, and yearly
trend. International Journal of Hospitality Management, 77, pp.573-582.

Clayton, J. (2021). What Does the Annual Employee Turnover Rate Mean? [online] Small
Business - Chron.com. Available at: https://smallbusiness.chron.com/annual-
employee-turnover-rate-mean-17988.html

Hargrave, M. (2020). Average Daily Rate (ADR). [online] Investopedia. Available at:
https://www.investopedia.com/terms/a/average-daily-rate.asp#:~:text=The
%20average%20daily%20rate%20(ADR)%20is%20a%20metric%20widely%20used.

HAYES, A. (2019). Market Share. [online] Investopedia. Available at:

https://www.investopedia.com/terms/m/marketshare.asp.

Landman, P. (2021). GOP - Gross Operating Profit Definition / Meaning. [online] Xotels.
Available at: https://www.xotels.com/en/glossary/gop-gross-operating-profit
APPENDIX
BALANCE SCORE CARD