Equations

Question 1

Amount of staff you need to cover the shifts

Answer 1

Number of shifts/Number of working days

Question 2

Forecasting annual rooms revenue

Answer 2

Rooms available X occupancy percentage X average daily rate

Question 3

Percentage of no-shows

Answer 3

Number of room no-shows / number of room reservations

Question 4

Percentage of walk-ins

Answer 4

Number of room walk-ins / total number of room arrivals

Question 5

Percentage of overstays

Answer 5

Number of overstay rooms / number of expected check out

Question 6

Percentage of under stays

Answer 6

Number of under stay rooms [For that night] / number of expected checkouts [for that night]

Question 7

Percentage of Cancellations

Answer 7

Number of canceled rooms [for that night] was that / number of reservations [for that night]

Question 8

Percentage of early arrivals

Answer 8

Number of early arrivals [for that night] / number of reservations [for that night]

Question 9

Average reservation on booking

Answer 9

Total number of bookings for a specific date/the number of dates

Question 10

Average pick up

Answer 10

Average reservation on booking for the official date – Average reservation on bookings for the amount of days

Question 11

Rule of thumb approach

Answer 11

Total investment/number of rooms

Question 12

Pretax income

Answer 12

Net income/1 - tax rate

Question 13

Potential average single rate

Answer 13

Single room revenues at rack rate/Number of rooms potentially sold as singles

Question 14

Potential average double rate

Answer 14

Double rooms revenue at rack rate / Number of rooms potentially sold as double

Question 15

Multiple occupancy percentage

Answer 15

Rooms occupied by more than one guest/number of rooms occupied

Question 16

Rate spread

Answer 16

Potential average double rate - potential average single rate

Question 17

Potential average rates

Answer 17

[Multiply occupancy percentage x rate spread] + potential average single rate

Question 18

Rooms rate achievement factor

Answer 18

Actual average rate / potential average rates

Question 19

Yield statistic formulas

Answer 19

3 different formulas:

1. Actual rooms revenue/potential rooms revenue
2. [rooms nights sold/room nights available] x [actual average room rate/potential average rate]
3. Occupancy percentage X room rates achievement factor

Question 20

Rev PAR

Revenue per available room

Answer 20

• Actual room revenue/number of rooms available

- occupancy percentage x ADR

Question 21

Identical yields

Answer 21

Identical yields occupancy % = current occupancy percentage x [current average rate / proposed average rate]

Question 22

Equivalent occupancy

Answer 22

%= current occupancy percentage x [current Cm/new Cm= current occupancy percentage x [rate-marginal cost/rate [1-disc.%] - marginal costs]

Question 23

RevPAG

Answer 23

Total revenue / no.of guest

Question 24

GOPPAR

Gross operating profit per available room

Answer 24

Departmental revenues - departmental expenses / no. of available rooms