1. Forecasting and Rates
Strand 3

2. 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

3. 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

4. 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

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

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

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

9. Government Rate
Government ID required for discount

10. AARP
Senior Citizen discount

11. AAA
Motor club discount

12. Taxes

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

14. State Tax
Levied by the state

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

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

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

18. 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

19. 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

20. 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?

21. 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)