Hotel Revenue Glossary · Metrics

Flow-Through

The percentage of incremental revenue that converts to incremental profit. If A$10,000 of incremental revenue is accompanied by A$3,000 of incremental cost, A$7,000 reaches incremental profit and flow-through is 70%. Compare departments and initiatives using the property's actual cost bridge rather than a universal rooms-versus-F&B ranking.

Why it matters: Flow-through explains why room revenue is so valuable — once fixed costs are covered, each additional room sold at even a modest rate contributes heavily to profit. It also justifies why revenue managers fight for every room night.

All glossary terms GOPPAR (Gross Operating Profit Per Available Room) Room Revenue CPOR (Cost Per Occupied Room)