Chapter 5 Lodging Operations HOST 101

Think about how much you (or your parents) have spent on a hotel Think about how much you (or your parents) have spent on a hotel. Was it expensive? Affordable? Ever wonder how and why hotel rooms are priced the way they are?

demand-forecasting technique used to maximize room revenue technique borrowed from the airline industry monitors the demand and supply and recommends the number and type of rooms to sell for any given day, and the price for which to sell each room Revenue Management

ROOM OCCUPANCY PERCENTAGE ROP ROOM OCCUPANCY PERCENTAGE Rooms Occupied Rooms Available

If a hotel had a total of 250 rooms and 190 of them are occupied, what is the ROP? Give students two minutes to calculate on their own.

ROOM OCCUPANCY PERCENTAGE 76% ROOM OCCUPANCY PERCENTAGE 190 room occupied 250 total number of rooms

ADR AVERAGE DAILY RATE Room Revenue Number of Rooms Sold

If the room revenue was $24,505 and 190 rooms were sold, then what is the ADR? Give students two minutes to calculate on their own.

$128.97 AVERAGE DAILY RATE $24,505 in room revenue 190 room sold

RevPAR REVENUE PER AVAILABLE ROOM Room Revenue Number of Rooms Available RevPAR used to see how they are doing compared to their competitive set of hotels.

If the room revenue was $24,505 and the hotel has 250 rooms total, then what is the RevPAR? Give students two minutes to calculate on their own.

REVENUE PER AVAILABLE ROOM $98.02 REVENUE PER AVAILABLE ROOM $24,505 room revenue 250 total rooms RevPAR used to see how they are doing compared to their competitive set of hotels.

THE “PUBLISHED” RATE THAT THE HOTEL WOULD LIKE TO GET FOR THE ROOM. Rack Rate THE “PUBLISHED” RATE THAT THE HOTEL WOULD LIKE TO GET FOR THE ROOM.

Why are these numbers so important to lodging operations? Ask students to shout out answers and document on white board. Possible answers include, performance, tells us how we are doing? Tells us if we are discounting rooms too much? Not enough? We can compare our RevPar to our competitors. We can determine marketing strategies. We can determine staffing levels.

Lodging Operations Org Chart Each group has an envelope containing various lodging operations jobs/positions. Place these positions in an organization chart, which is a graphic representation of the structure of the hotel showing the relationships of the positions or jobs within it. Lodging Operations Org Chart

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