Operational benchmarking allows organisations to evaluate various aspects of their operations and compare them to industry standards. This then allows organisations to determine their relative performance and can give key insight into what parts of business operations are performing well and what can be improved on.
In the hospitality and leisure sectors, some of the key benchmarking measures include the following:
Controlling is an ongoing process. Therefore operational benchmarking is a tool that should be consulted regularly.
The below diagrams indicate how a typical club and hotel operate. These models are highly simplifed and attempt to represent the typical trading characteristics of both clubs and hotels. Each diagram indicates how $100 in revenue goes through a venue. Each diagram indicates the respective ratios each trading department receives, followed by the surpluses generated by each of those departments. This the is summed to produce a 'Front of house GP', Overheads are then taken from this amount to produce an EBITDARD in the case of the club model and an EBITDA in the case of the hotel model.