Let's look at some of the measures or some of the different ways of measuring computer's performance which may lead to a sudden bad decisions for example, comparing the performance with the interest rate based on the investment in hotels. Now, some of the owners may also see or some of the owners normally owners are saying that if we the hotel's value is maybe 100 million dollar and we are not even able to generate the rate, the interest bank interest rate in the hotels, that is not right way of comparing the hotels performance because the hotels performance is the hotels for revenue performance and other is not dependent on the market value of the hotel. It depends on the market of the tourism. If a tourism market is bad, you will not be able to generate anything and usually the hotels performing over a longer period of time there.

May be able to generate a much higher return not only from the performance but also from the capital gains in the building. So, you should not always be pressure comparing your hotel's performance with the interest rate or with the other alternative use of the building because there are different matrices comparing them will not be will not give you a correct strategy or correct decision then sometimes we are also thinking about to maximize the full occupancy days. Now, full occupancy days is also again a myth that if the hotel is hundred percent occupied is giving you a better return it's not you can full fully occupied arrays by dropping your rates to the lowest in the market it will be hundred percent occupied, but what is the yield and what is the profitability of getting those customers? What is the profitability of serving those customers. So, it's not the full occupancy days now is not a right strategy to think about The Buddha's performance again selling rates compared to the common sense.

Some of the hotels sometimes are saying that we should not be selling lower than our competitor or higher than we should always be higher than our competitor. The selling rates are not the one which are deciding the hotel's price positioning. So, because hotels have different prices based on the guest geography, the guest they can have based on geography costs with different cafes of the business segment it can be different based on the rubric can be based on the route category it can be different based on the features that you are providing in the hotel can also be different based on the location in the city can be different. You cannot compare the selling rates only with the competition, labor cost percentage to the revenue without thinking of the other expenses or the GOP percentage. Usually the hotels have been comparing the labor cost as a traditional that okay, the labor cost is 20% On the occupants of the revenue total revenue 30% of the total revenue.

But rent, labor costs can be lower labor costs can be managed by outsourcing a lot of things which will increase the cost of other operations impacting that up percentage. So, labor costs alone should not be considered as into a decision making because it's not a complete measure. Rather than better ways the GDP our GDP per available room, which is more better indication of how we are managing the operational efficiency in order food and beverage cost comparison. Normally, the hotels are also comparing the restaurants food and beverage cost with a competitor or in the market. However, food and beverage cost percentage itself is not correct metrics to determine the hotel's performance or operating performance sometimes may be selling items which are high cost but even a high ticket But giving us a very high volume and optimizing the performance from the staff or utilizing the time when you have the time of the restaurant or the seat occupancy of the restaurant.

There is no point in selling very high rate T, lower food and beverage costs and leaving the restaurant seats empty rather than that you can sell them at a cheaper price, maybe higher food costs but maximize the space because hotels normally have a perishable inventory needs is one it's gone, it's gone, you will not be able to resell it again. So it's better to maximize the revenue or the profit while the inventory is still available, because the time is the most critical factor in total business.