HADM 1350 Lecture Notes - Lecture 1: Gross Profit, Revpar, Kaizen

• School: Cornell University
• Department: Hotel Administration
• Course: HADM 1350
• Professor: Reneta Mc Carthy

Document Summary

Adr average daily rate, average income per occupied room. Occupancy - percentage of all rental units in the hotel that are occupied at a given time. Adr var costs per occ room + add. rev per occ room) occupancy. Blended adr and revpar taken into consideration of the business mix. Gopar - gross operating profit per available room. Takes into account all the operating and departmental costs, including fixed prices. Level of service distinguishes a stay at ritz carlton. 4 principles of luxury brands: customer-centered, rigorous selection process, retrain employees, measure and reward customer centric behavior. Inverted organization pyramid customers on top, board of directors at the bottom. Customer emotion - measurement of emotional intelligence: rc prioritize customers and employee loyalty, financial success, and continuous improvement. Touch point is an interaction between customer and business. Kaizen means improvement : business should be constantly looking for ways to improve, no matter the industry.