Understanding Flow-Through Percentage
How we calculate. Flow-through % = Δ profit ÷ Δ revenue × 100. The form uses the same arithmetic as the worked examples on this page. See our methodology and accuracy policy.
Real-world scenario: A typical Flow-Through Percentage case uses incremental profit 8000 and incremental revenue 20000. Enter the same figures below to reproduce the worked path.
What is Flow-Through Percentage?
A hotel P&L conversion KPI. Distinct from GOPPAR (profit÷rooms available) and hospitality labor cost %.
- Same P&L basis for both deltas
- Incremental = current − baseline
- Revenue and profit definitions frozen
The Formula
Worked Example
Common Use Cases
- Budget vs actual: profit conversion
- Revenue events: how much flowed to GOP
- Owner packs: incremental efficiency
Pro Tips
- Label GOP vs NOI carefully
- Negative revenue delta needs context
- Pair with RevPAR / TRevPAR
Limitations: Flow-Through Percentage results are educational hotel and restaurant planning aids—not accounting, tax, or franchise reporting advice. Confirm definitions with your PMS, POS, and brand standards.
FAQ
Same as GOPPAR?
No. GOPPAR is gross operating profit ÷ rooms available. Flow-through is incremental profit ÷ incremental revenue.
What if incremental revenue is 0?
Flow-through is undefined—enter a non-zero incremental revenue.
Authoritative References
For hotel and restaurant performance concepts, consult:
- AHLA — lodging industry context
- Hospitality Net — industry explainers
- National Restaurant Association — restaurant operations context