HTM 4250 Lecture Notes - Lecture 2: Variable Cost, Wi-Fi, Gift Shop

• School: University of Guelph
• Department: Hospitality and Tourism Management
• Course: HTM 4250
• Professor: Holmes

Document Summary

Competitive fair market share and market penetration. Understanding the challenges of revenue performance measurement. Any evaluation of a hotel"s occupancy percent or its adr, without a simultaneous assessment of both, is meaningless. There is no perfect measure use one that gives you what you need. Need to be sure if it is gross or net of taxes, commissions, etc. A basic benchmark that allows comparison to other hotels regardless of size. Need to be sure some rooms not being renovated. Occ = 86 / 100 = 0. 86 = 86% A statistic which measures the trade-off between price and occupancy decisions. When revpar is increasing, price and capacity tools are being used well. When revpar is decreasing, price and capacity tools are not working so well. Based on room revenues only not variable costs. Average total room generated revenue generated by each available but not necessarily occupied room.