In simple terms, Net Operating Profit (NOP) in a hotel is the money left after covering all operating expenses, before deducting taxes and interest. It’s a key measure of profitability.
Vacation Rental Glossary
Net Operating Profit (NOP)
Vacation rental metrics or key performance indicators are critical measurable aspects of your business that you can lean on to understand and manage your business better. From occupancy rates to referrals your vacation rental is getting, it can be helpful to track these metrics. “You can’t improve what you don’t measure!”
If you understand the business metrics, you and/or the vacation rentals’ manager will be able to analyze the return on your investment and return on revenue more accurately to improve your operations.
