Revenue management has taken on a critical role in the hospitality industry. You are required to use
Question:
Revenue management has taken on a critical role in the hospitality industry.
You are required to use the appropriate formula to calculate the correct revenue management information. Show all your workings.
Formulas: (the four formulas below are NOT in any given order)
Actual rooms revenue
Number of available rooms
Rooms sold x Selling price
Number of rooms occupied
Number of rooms available
Rooms Revenue
Number of rooms sold
1. Calculate the total revenue for the night. Use the following information- on the 5thJanuary 2021, a hotel with 360 rooms had an occupancy of 85%. The rooms were sold at an average of $270 (2 Marks).
2. Calculate the occupancy percentage. Use the following information - The Central Hotel has 250 rooms available to sell on any given day. 225 rooms were sold on the 4thJanuary 2021 (2 marks).
3. Calculate the Average Daily Rate (ADR). Use the following information - The room revenue for the Central Hotel for the 6thJanuary 2021 was $78,950 and 258 rooms were sold on the night (2 marks).
4. Calculate the revenue per available room (RevPAR) to the nearest whole number. Use the following information - On the 7thJanuary 2021, the total revenue from the sale of 285 available rooms was $84,000 (2 marks).
5. Is your hotel under-performing, achieving fair share or over-performing if your hotel has a RevPAR Index of 104%? Justify your answer (2 marks).
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill