Analyzing the financial performance indicators of front office management in five-star hotels in Cairo

Abstract EN

This research aims to analyze the financial performance indicators in a convenience sample of 12 five-star hotels in Cairo applying to the front office management department using the quantitative method.

The data collection includes the hotels' financial reports, which include financial and operational performance indicators in the form of historical data.

The results of this research revealed that the coefficient of variance for the performance indicators is high among the sample hotels as follows; total room revenues (75.35 % ), average daily rate (70.11% ), revenue per available rooms (61.01% ), total rooms sold (45.52% ), daily rooms (45.21% ), annual rooms (45.21% ) and occupancy rate (13.3% ).

In addition, there are significant differences for daily rooms (DR), annual rooms (AR), total rooms sold (TRS), revenue per available rooms (RevPAR), average daily rate (ADR) and total rooms revenues (TRR) among the sample hotels.

Moreover, there is a strong positive correlation between total room revenues and daily rooms (r = 0.733) at the 0.01 significance level; a strong positive correlation between total room revenues and average daily revenue (r = 0.613); and a strong positive correlation between total room revenues and revenue per available rooms (r = 0.651) at the 0.05 significance level.

Moreover, there is a positive relationship between average daily rate and revenue per available rooms (r = 0.984) at the 0.01 level, and a positive relationship between daily rooms and total rooms sold (r = 0.975) at the 0.05 level.

Consequently, hotels managers need to make more effort to improve the financial and operational performance through enhancing the levels of revenue per available rooms, average daily rate and room occupancy rate to the highest possible levels to maximize the total rooms revenues of five-star hotels in Egypt.