What is the meaning / definition of in the hospitality industry?

Gross Revenue refers to the total sales made by a business. It thereby highlights a business’s ability to sell products and services, but it does not reveal if a company is able to strike a profit.

It is the company’s revenue minus the cost of goods sold (COGS). In this case it is also referred to as gross profit and, when expressed as a percentage of revenue, gross margin. Gross Revenue can be found on the top line of a company’s income statement. In order to calculate the Gross Revenue, together the total value of all sales must be added together.

Formula:

  • Gross Revenue = Total Revenue – Cost of Goods Sold

See Also:

  • Net Revenue
  • Gross Profit

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