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  • Exercises With The Basic Formulas

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    Ananyaa MAHESHWARI
    7 views3 pages
    Harrods Hotel currently has an average room rate of £195 and occupancy of 70%. It is considering lowering the average rate to £180 to increase revenue. To maintain the same revenue with a £180 rate, the hotel would need around 77.5% occupancy. If the hotel lowered its average rate 12% for low season, it would need around 82% occupancy to achieve the same revenue with expenses at 30% of room revenue.

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    Exercises with the basic formulas

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    Harrods Hotel currently has an average room rate of £195 and occupancy of 70%. It is considering lowering the average rate to £180 to increase revenue. To maintain the same revenue with a £180 rate, the hotel would need around 77.5% occupancy. If the hotel lowered its average rate 12% for low season, it would need around 82% occupancy to achieve the same revenue with expenses at 30% of room revenue.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    7 views3 pages

    Exercises With The Basic Formulas

    Uploaded by

    Ananyaa MAHESHWARI
    Harrods Hotel currently has an average room rate of £195 and occupancy of 70%. It is considering lowering the average rate to £180 to increase revenue. To maintain the same revenue with a £180 rate, the hotel would need around 77.5% occupancy. If the hotel lowered its average rate 12% for low season, it would need around 82% occupancy to achieve the same revenue with expenses at 30% of room revenue.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    Harrods Hotel has 250 guest rooms with an average room rate of 195£. The rack rate is 310£.

    It is currently operating at 70%


    If you are thinking to change your average room rate to 180£, because you want to bring more revenue to your property, whic
    If you are thinking to reduce your average rate in 12% for the low season, how much occupancy you will need to have the sam

    Find out the next ratios:

    •        RevPAR
    •        Yield Statistic
    •        Identical Yield Occupancy Percentage
    •        Equivalent Occupancy Percentage
    •        RevPAG
    •        GOPPAR
    is currently operating at 70% average occupancy. The expenses are 30% of the room revenue. The total number of guests are 230.
    evenue to your property, which occupancy you need to reach to keep your same level or revenue?
    you will need to have the same revenue? Take in consideration that your marginal cost per room is 18£
    umber of guests are 230.

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