Forecasting and Rates Strand 3.

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Presentation transcript:

Forecasting and Rates Strand 3

FORMULA: Amount of no show rooms / total amount of rooms booked No Show Percentage Percent of guest that did not check in with a reservation FORMULA: Amount of no show rooms / total amount of rooms booked

FORMULA: number of walk ins / total rooms booked Walk in PErcentage Guests that arrive without a reservation and book a room for the night FORMULA: number of walk ins / total rooms booked

FORMULA: overstay rooms / total amount of rooms booked Overstay percentage Amount of rooms that are staying an additional night FORMULA: overstay rooms / total amount of rooms booked

FORMULA: understay rooms / total rooms booked Understay Percentage Amount of rooms that check out early FORMULA: understay rooms / total rooms booked

Rack Rate Highest amount a hotel can charge for a room Usually posted in the room on the door

Special Rates Vary by property Discounted rates for military, groups, educators, government workers, locals, etc

Government Rate Government ID required for discount

AARP Senior Citizen discount

AAA Motor club discount

Taxes

Transient Tax charged to travelers when renting accommodations Utah rate is up to 4.25% depending on county

State Tax Levied by the state

Sales Tax A percent paid on sales, includes county, state and special tax rates

FORMULA: hotel’s average daily rate X occupancy rate RevPAR Revenue Per Available Room FORMULA: hotel’s average daily rate X occupancy rate

Occupancy Rate Ratio of rented rooms on a given day FORMULA: Total number of rooms occupied / total number of rooms available

FORMULA: room revenue / number of rooms sold Average Daily Rate Represents the average rental income per paid occupied room in a given time period FORMULA: room revenue / number of rooms sold

Wednesday Thursday Friday Saturday Sunday Total Rooms Booked 87 112 88 Use the following graph for a hotel that has a total of 150 available rooms for occupancy. Discounted rates are at 20% off. Tax rate is 6.35% + 1.5% Transient Tax Wednesday Thursday Friday Saturday Sunday Total Rooms Booked 87 112 88 108 93 Rack Rate 72 100 82 98 80 Discounted rates 8 6 2 Walk-ins 5 3 4 No shows

What is the no-show percentage for Saturday? What is the occupancy percentage for Thursday? What is the walk-in percentage for Sunday? What is the ADR for Wednesday? What is the RevPAR for Sunday?

Things to do today: Finish Travel Agent projects: they were due last week!! Finish Recreation packets & case studies Finish Std. 2 Guest Room Classification packets Finish Std. 3 Forecasting & Rates packet (Today’s packet)