roomsdivisionbasictheoriesii-100501120013-phpapp02

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By Eugene Win CRDE

For Kabul Serena Hotel 2009

Copyright. Eugene Win CRDE2009



RevenueRevenue

Management...Management...

Marriott Internationalo!ging Re"enue

Manage#ent


Where i$ it originate!%It i$ originate! in the

airline in!u$try.



Seat$ on airplane !i"i!e! into!i&erent pro!u't$ ba$e on

!i&erent re$tri'tion$.

()*000 + Cla$$, Can be pur'ha$e!at any ti#e* re-un!able.

( 200 Cla$$, Re/uire! 1ee$a!"an'e! pur'ha$e. 3enaltie$ on

'an'ellation or a#en!#ent.

RevenueRevenue

Management...Management...

Marriott Internationalo!ging Re"enue

Manage#ent




“ Selling the right product

to the right customer

at the right time

for the right price.”

Revenue ManagementRevenue Management

is ….is ….






B:SED ;< S=33+:<D DEM:<D.

3ri'e$ ten! to ri$e1hen !e#an! e4'ee!$

$upply> pri'e$ ten! to-all 1hen $upply

e4'ee!$ !e#an!.

Revenue ManagementRevenue Management

is ...is ...




Desire is to Focus on REVPARDesire is to Focus on REVPAR

REVPAR = Rate xOccupancy

Rate Occupanc

y




How Does a Property IncreaseHow Does a Property IncreaseREVPAR ?REVPAR ?

AFE!

? Increaserestrictions on"ower rates

? E"iminate "astroom avai"a#i"ity$or pecia"%orporateaccounts

? E"iminate non&pro'ucingpecia"%orporateaccounts

MODERA!E

? %"ose out "owerrates on pea('ays

? Raise rates $orsma""er pecia"%orporateaccounts

? Raise prices on'iscount rates

RI)IE!

? Raise t*e%orporate Rate

? E"iminate

'iscount rates




Revenue %yc"eRevenue %yc"e

%REA!EDEMA+D MA,IMI-E

REVE+E PERIOR

ERVI%E

E,PERIE+%E




Revenue Management

Ho1 1eControl an!

i#it the roo#

$upply

Ho1 1e $ell

our pro!u't

Ho1 1e

prote't

$u@'ient

$pa'e -or

longer $tay$

MA,IMI-I+/ REVE+E

%apacity

Management

Discount

A""ocation

Duration

%ontro"




Revenue %yc"e

MA,IMI-I+/ REVE+E

PRI%I+/

Ho1 1e pri'eour pro!u't

E00I+/!RA!E/1

Ho1 1e $ell

our pro!u't

I+VE+!OR1

A00O%A!IO+

What 1e put

on the $hel-




Revenue management is designed to measure

revenue achievement. Yield Statistic is the ratio of actual room

revenue to potential room revenue.




We 1ill illu$trate the ne1 -or#ulae by u$ing aparti'ular $'enario,

Tower Hotel has 300 guest rooms with an

average room rate of $35.00. It is currentlyoperating at 70% average occupancy. Thehotel has 200 stanar ou!le !erooms" an#00 ou!le elue rooms. t rac& rate" thestanar rooms sell at $'0.00 at singleoccupancy an $50.00 at ou!le occupancy"whilst the elue rooms sell at $50.00 atsingle occupancy an $(0.00 at ou!leoccupancy.






Formu"a 43 Potentia" Average Dou#"e Rate Sin'e 1e al$o ha"e "arie! rate$ by roo# type

the potential a"erage !ouble rate #u$t be

'al'ulate!, Roo# type8 <u#ber o- roo#$8 Double Ra' rate8 Re"enue at )00o''upan'y

Stan!ar! 200 (0 ()0*000

Delu4e )00 (0 (*000

Aotal 00 ()*000

3otential :"erage Double Roo# Re"enue$ at Ra' Rate

Double Rate <u#ber o- Roo#$ Sol! a$ Double$

)*000G00

( .




Formu"a 53 Mu"tip"e Occupancy Percentage Ahi$ i$ the proportion o- a hotel$ roo#$ that

are o''upie! by #ore than one per$on. Ahi$

per'entage in!i'ate$ $ale$ #i4 an! help$balan'e roo# rate$. I- ) roo#$ -ro# thetotal o- 2)0 roo#$ $ol! 7J0 o- 00 roo#$are $ol! at !ouble o''upan'y then the'o#putation i$ a$ -ollo1$,

Multiple ;''upan'y )

3er'entage 2)0

0




Formu"a 63 Rate prea' Ahe !eter#ination o- a roo# rate $prea!

a#ong "ariou$ roo# type$ 'an be e$$ential to

the u$e o- yiel! !e'i$ion$ in targeting a hotel$$pe'i6' #aret. Ahe #athe#ati'al !i&eren'ebet1een the hotel$ a"erage $ingle rate7For#ula ) an! potential a"erage !ouble rate7For#ula 2 i$ no1n a$ the rate $prea!.,

Rate Sprea! 3otential :"erage Double Rate 3otential :"erageSingle Rate

( . 8 ( .

( )0.00Copyright. Eugene Win CRDE

2009



Formu"a 73 Potentia" Average Rate Ahi$ i$ a 'olle'ti"e $tati$ti' that e&e'ti"ely

'o#bine$ the potential a"erage rate$* #ultiple

o''upan'y per'entage* an! rate $prea!.

Potential = ( Multiple x Rate Spread ) + Potential Average

Average Rate Occ % Single Rate

= (0.8 x $0.00) + $ !".""

= $ #.""




Formu"a 83 Room Rate Ac*ievement Factor Ahe per'entage o- the ra' rate a hotel

a'tually re'ei"e$ i$ 'ontaine! in the hotel$

a'hie"e#ent -a'tor* al$o re-erre! to a$ therate potential per'entage.

:'hie"e#ent Fa'tor :'tual :"erage Rate 4 )00

3otential :"erage Rate

(.00G(). 4




Formu"a 93 1ie"' tatistics Ahi$ i$ perhap$ the #o$t i#portant ele#ent in

yiel! #anage#ent. We ha"e alrea!y $een ho1

to e4pre$$ an! 'al'ulate thi$ $tati$ti'. Here 1e1ill u$e the -ollo1ing 'o#putation,

+iel! Stati$ti'$ ;''upan'y 4 :'hie"e#ent -a'tor

0.J 4 0.

0.J




Formu"a :3 I'entica" 1ie"' tatistics Ahi$ i$ the point 1here 1e 'an a$ LWhat i-

%N /ue$tion$ to !eter#ine ho1 !i$'ounting1ill a&e't our re"enue. I- 1e 1ere to !e'rea$e

or in'rea$e our rate* 1hat o''upan'yper'entage 1oul! 1e nee! to a'hie"e topro!u'e the $a#e yiel!% et$ $uppo$e thatour hotel 1ant$ to !e'rea$e it$ rate by (2.00to (.00.I!enti'al +iel! Current 4 Current Rate

Stati$ti'$ ;'' 3ropo$e! Rate

J0 4 7(G(

0.J2

J Ao a'hie"e the $a#e yiel! the hotel #u$t ha"e an o''upan'y o- J.





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