1. Chapter 5 Lodging Operations
HOST 101

2. 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?

3. 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

4. ROOM OCCUPANCY PERCENTAGE
ROP
ROOM OCCUPANCY PERCENTAGE
Rooms Occupied
Rooms Available

5. 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.

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

7. ADR
AVERAGE DAILY RATE
Room Revenue
Number of Rooms Sold

8. 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.

9. $128.97
AVERAGE DAILY RATE
$24,505 in room revenue
190 room sold

10. 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.

11. 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.

12. 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.

13. 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.

14. 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.

15. 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

16. This work is licensed under the Creative Commons Attribution 4
This work is licensed under the Creative Commons Attribution 4.0 International License (CC BY). To view a copy of this license, visit Creative Commons Attribution 4.0 International License "This workplace product was funded by a grant awarded by the U.S. Department of Labor. All other uses require the prior authorization of the copyright owner."