Podcast
Questions and Answers
What is the formula for Average Daily Rate (ADR)?
What is the formula for Average Daily Rate (ADR)?
- $ADR = Total Room Revenue / Total Revenue$
- $ADR = Total Rooms Sold / Total Rooms Available$
- $ADR = Total Revenue / Total Rooms Available$
- $ADR = Total Room Revenue / Total Rooms Sold$ (correct)
How is Occupancy Percentage (Occ %) calculated?
How is Occupancy Percentage (Occ %) calculated?
- $Occ % = Total Rooms Sold / Total Revenue$
- $Occ % = Total Room Revenue / Total Rooms Sold$
- $Occ % = Total Rooms Sold / Total Rooms Available$ (correct)
- $Occ % = Total Revenue / Total Rooms Available$
For Hotel A with 150 rooms and selling 80 rooms at $120/night, what is the Average Daily Rate (ADR)?
For Hotel A with 150 rooms and selling 80 rooms at $120/night, what is the Average Daily Rate (ADR)?
- $ADR = $150$
- $ADR = $80$
- $ADR = $120$ (correct)
- $ADR = $100$
For Hotel A with 150 rooms and selling 80 rooms at $120/night, what is the Occupancy Percentage (Occ %)?
For Hotel A with 150 rooms and selling 80 rooms at $120/night, what is the Occupancy Percentage (Occ %)?
For Hotel A with 150 rooms and selling 80 rooms at $120/night, what is the Revenue per Available Room (RevPAR)?
For Hotel A with 150 rooms and selling 80 rooms at $120/night, what is the Revenue per Available Room (RevPAR)?
Flashcards
What is the formula for Average Daily Rate (ADR)?
What is the formula for Average Daily Rate (ADR)?
Total Room Revenue / Total Rooms Sold
How is Occupancy Percentage (Occ %) calculated?
How is Occupancy Percentage (Occ %) calculated?
Total Rooms Sold / Total Rooms Available
Hotel A: 150 rooms, 80 sold @ $120/night. What is ADR?
Hotel A: 150 rooms, 80 sold @ $120/night. What is ADR?
$120
Hotel A: 150 rooms, 80 sold @ $120/night. What is Occ %?
Hotel A: 150 rooms, 80 sold @ $120/night. What is Occ %?
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Hotel A: 150 rooms, 80 sold @ $120/night. What is RevPAR?
Hotel A: 150 rooms, 80 sold @ $120/night. What is RevPAR?
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Study Notes
Introduction to Revenue Management
- Revenue Management is a set of strategies and tactics aimed at maximizing revenue and improving profitability in businesses.
Scope of Revenue Management
- Involves aspects of Marketing, Operations, and Financial Management.
Characteristics of Revenue Management
- Should be a data-driven discipline, combining art and science.
- Backed by the science of Business Intelligence.
Misconceptions about Revenue Management
- More to it than just adjusting room rates.
History of Revenue Management
- First established in the airline industry following deregulation.
- Utilized computer power to calculate data and transfer information quickly.
- Success in airline industry led to adoption by other industries.
Industries that Utilize Revenue Management
- Airlines
- Hotels
- Rental Cars
- Cruise Ships
- Radio/TV Broadcasters
Common Characteristics among Industries
- All industries that utilize Revenue Management share common characteristics.
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