Based on previous research, revenue management now focus on alternative benchmarks for assessing bottom-line performance. The advent of alternative benchmarks leads to increased analysis of the relationship between revenue and profitability within hotel management. This thesis builds on previous research of revenue and profitability with RevPAR and GOPPAR acting as proxies for revenue and profitability to determine the relationship between the two variables as well as identifying their roles and analysis within revenue management as revenue management maneuvers toward a more strategic outlook. Also, this thesis identifies whether affiliation (independent vs. chain-affiliated) and hotel service levels directly affect the correlation between RevPAR and GOPPAR. First, a comprehensive literature review discusses the evolution of revenue management practices as well as the evolution of performance benchmarking including non-financial performance assessment. The literature review also discusses the roles of RevPAR and GOPPAR in hotel management. Lastly, the literature review discusses characteristics of independent properties and the characteristics of service levels and the visibility of revenue and profitability within each affiliation and service level.
The empirical results show that affiliation is not significantly related to RevPAR and GOPPAR; therefore, property affiliation does not significantly affect the correlation between RevPAR and GOPPAR. Empirical results do show that Service Level is significantly related to RevPAR and GOPPAR. Results also show how each Service Level affects the relationship strength between RevPAR and GOPPAR. The conclusion discusses managerial and academic implications
