The Road to Hotel Profitability: Adopting Flow Through + Flex Metrics

HotStats | July 17, 2024

When measuring hotel profitability, two key metrics stand out: flow through and flex. Flow through measures the percentage of additional profit from each extra dollar of revenue, while flex gauges the ability to save profit during revenue shortfalls. These metrics provide crucial insights into financial performance, offering a comprehensive framework for operational analysis. "Understanding flow through and flex is essential for any hotel aiming to optimize profitability and navigate economic fluctuations effectively," says Lisa Martin, Regional Director for Hotel Finance, at Davidson Hospitality. Integrating these metrics into your ana...