Key Operating Ratios of Rooms

Division
Introduction

Most establishments are focused on marketing and promotion

to maximize sales and the cost of operation is often not given
equal attention. To determine if hotels are gaining usually
some formulas are given as follows.
Occupancy Statistics= It refers to the number of rooms occupied within the day
of operation.

Percentage of Occupancy = Rooms Occupied

Total Rooms Available
To substitute 800
480
= 1.66
If there are 480 rooms occupied out of 800 total rooms available within the day,
then the percentage is 166%.
Hotel Revenue Statistics
This indicates the profitability of the room sold on the day of operation. This
reflected in the daily room rate of the room. There may be some rooms which
are less popular but more profitable because the cost is slow yet they can be
sold at higher prices.
To compute:

Average Daily Room Rate = Total Rooms Revenue_____

Total Number of Rooms Sold
To substitute
10,500 Total Rooms Revenue
15 Total Number of Sold
= 700

A room may have low profitability but it could be highly popular but generates
sales.
PROPERTY MANAGEMENT SYSTEM (PMS)
Computer based applications
• Reservation management
• Rooms management
• Guest account management
• General management
YIELD MANAGEMENT
• Increases rooms revenue by using demand forecasting technique
• Based on the economics of supply and demand
• Pricing is based on
= trends of demand
= type of room to be occupied
THE END