Chapter 12 - Planning and Evaluating Operations Room Rate Category Definitions: 1. Corporate or Commercial Rate The rate offered to companies that provide frequent business for an individual hotel or hotel chain. . Group Rate The rate offered to group, meeting and convention attendees staying at the hotel. Promotional Rate The rate offered to individuals who may belong to an affinity group such as AAA or AARP to promote their patronage. 4. Incentive Rate The rate offered to guests in affiliated organizations such as travel agencies and airlines because of potential referral business. Often extend to group leaders, meeting planner, tour operators and other decision makers capable of providing additional room sales LO Family Rate Rate reserved for families with children. Package Plan Rate A rate that includes a guestroom in combination with events, activities or services such as meals, golf, tennis or parking. Internet Rate Special discounted rate through internet website. Best available rate. Distressed-Inventory Rate Special room rate offered when hotel projects or experiences low occupancy. Complimentary Rate Room rate provided to special guests, important industry leaders as a sales incentive, and those guests who have experienced a problem as compensation.Chapter 12 Planning and Evaluating Operations Occupancy Ratios Formulas Occupancy Percentage Number of Rooms Occupied + Number of Rooms Available Average Daily Rate Total Room Revenue + Number of Rooms Sold Average Guests Per Room Sold Number of Guests : Number of Rooms Sold Revenue Per Available Room Total Room Revenue : Number of Available Rooms Revenue Per Available Customer Total Combined (Rooms & Other) Revenue - Number of Guests Yield Statistic Actual Rooms Revenue + Potential Room Revenue Potential Room Revenue = Average Rack Rate X Total Available Rooms