How Do I Calculate Flex or Flow % for Financials?

Explained...

Flow through and flex are two key metrics of hotel profitability. While flow through is the percentage of extra profit that flows to the bottom line from each incremental dollar of revenue, flex is the amount of profit that is flexed (or saved) when there is a revenue shortfall. 

The Calculations

Calculating flow through and flex is very simple: you just need the total revenue and gross operating profit (GOP) for two time periods. However, there are some key points of clarification to arrive at the final metric. See the table below for the 5 Basic Scenarios to qualify when calculating this metric.

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