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  • Measurements in Revenue Management - Iii: Thursday, Decemb Er 09, 2021 1

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    anjalikumar_26
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    This document discusses key revenue management measurements and recaps previous topics. It introduces the concept of identical net revenue and how to calculate the required new occupancy percentage needed to achieve the same net revenue when average daily rate changes. Maintaining identical net revenue helps management quantify the effects of different pricing scenarios.

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    Identical net revenue

    Original Title

    Revenue Measurement

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    This document discusses key revenue management measurements and recaps previous topics. It introduces the concept of identical net revenue and how to calculate the required new occupancy percentage needed to achieve the same net revenue when average daily rate changes. Maintaining identical net revenue helps management quantify the effects of different pricing scenarios.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    12 views6 pages

    Measurements in Revenue Management - Iii: Thursday, Decemb Er 09, 2021 1

    Uploaded by

    anjalikumar_26
    This document discusses key revenue management measurements and recaps previous topics. It introduces the concept of identical net revenue and how to calculate the required new occupancy percentage needed to achieve the same net revenue when average daily rate changes. Maintaining identical net revenue helps management quantify the effects of different pricing scenarios.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    MEASUREMENTS IN

    REVENUE MANAGEMENT - III

    Thursday, Decemb 1
    er 09, 2021
    SCOPE

    • Identical Net Revenue


    • Exercises

    Thursday, Decemb 2
    er 09, 2021
    RECAP

    • Contribution Margin

    • GOPPAR

    Thursday, Decemb 3
    er 09, 2021
    IDENTICAL NET REVENUE

    Required New Occupancy =

    Current Contribution Margin Current


    X X 100
    Occupancy %
    New Contribution Margin

    Thursday, Decemb 4
    er 09, 2021
    IDENTICAL NET REVENUE

    • To identify the occupancy percentage


    that will give identical net revenue when
    ADR changes

    • Helps the management to analyze


    different scenarios by quantifying the
    outcomes of pricing decisions

    Thursday, Decemb 5
    er 09, 2021
    THANK YOU

    Thursday, Decemb 6
    er 09, 2021

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