Benchmarking for Financial Performance in the Hotel Industry

Benchmarking helps firms to compare their performance with other similar firms or competitors operating in the same or similar markets. A benchmark is an appropriate reference for comparison and the process of comparison leads to insights that bring about an improvement in performance. Although the financial performance of firms is of vital importance to stakeholders, benchmarks are not always financial matrices and a wide range of benchmarks are used for comparisons in all industries, including the hotel industry. This very brief essay presents a discussion about the use of benchmarks for comparing financial performance in the hotel industry, benchmarks used in other industries and the effective use of benchmarking.