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|esire is to Focus on REVPAR

  




Rate Occupancy

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ow |oes a Property Increase REVPAR ?

SAFEST MO|ERATE RISKIEST

D Increase restrictions D Close out lower D Raise the Corporate


on lower rates Rate
rates on peak days
D Eliminate last room D Eliminate discount
availability for D Raise rates for
smaller Special rates
Special Corporate
accounts Corporate
accounts
D Eliminate non-
producing Special D Raise prices on
Corporate accounts discount rates

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Revenue Cycle

CREATE
|EMAN| MAXIMIZE
REVENUE SUPERIOR
SERVICE
EXPERIENCE

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Revenue Management

MAXIMIZING REVENUE

Capacity |iscount |uration

Management Allocation Control

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Revenue Cycle

MAXIMIZING REVENUE

SELLING INVENTORY
PRICING STRATEGY ALLOCATION

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$   $    
     
Tower Hotel has 300 guest rooms with an average
room rate of $35.00. It is currently operating at 70%
average occupancy. The hotel has 200 standard
double bedrooms, and 100 double deluxe rooms. At
rack rate, the standard rooms sell at $40.00 at single
occupancy and $50.00 at double occupancy, whilst
the deluxe rooms sell at $50.00 at single occupancy
and $60.00 at double occupancy.

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Formula 1: Potential Average Single Rate
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Formula 2: Potential Average |ouble Rate
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Formula 3: Multiple Occupancy Percentage
            
       
       
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Formula 4: Rate Spread
          
          
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Formula 5: Potential Average Rate
          
          
    

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Formula 6: Room Rate Achievement Factor
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+ 7   3 +  + 



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3 #242##/
3 51/

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Formula 7: Yield Statistics
         
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3 065
3 01/

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Formula 8: Identical Yield Statistics
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