Term
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Definition
hotels follow a roller coaster economy
build during good times
overbuild into the downturn
world oil supply impacts travel and occupancy |
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Term
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Definition
the relationship between demand (the number of rooms actually sold) and supply (the number of rooms available for sale)
measures the hotel's "share of the market", so it measures quantity
=# of rooms sold/# rooms available for sale |
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Term
| sales per occupied room (ADR) |
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Definition
amount received for each room sold
measures the quality of the business, normally price increases as occupancy percentage increases
=room sales/# of rooms sold |
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Term
| RevPar (Revenue per Available Room) |
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Definition
The relationship between revenue per room and the total room inventory available
measure how well front-office manager fills rooms without cutting prices
=total room revenue/number of rooms available for sale |
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Term
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Definition
refers to any room in which there is more than one person
increases per-room revenue because of the additional charge
high __ skews room revenue, and hence ADR, upward
=(# of guests-# of rooms occupied)/# of rooms occupied |
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Term
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Definition
the point at which there are neither profits or losses
below this point fixed costs to be paid exceed revenues leading to losses |
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Term
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Definition
at midnight, value of unsold inventory is $0
tomorrow we are selling tomorrow's inventory |
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