Htm 4250 Midterm Flashcards
7 characteristics of industries where RM is applicable
- Versioning Opportunity
- Variable Demand
- Fixed Capacity
- Perishable Service
- Low Variable Costs
- High Fixed Costs
- Advance
ADR is not a measure of
Profitability or variability
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
Total RevPAR
Average total room generated by each available, but not necessarily occupied room
RevPOR is based on
Based on occupied rooms, not rooms available
CPOR
Room related costs incurred directly as a result of selling a guest room, variable cost per room
GOP
Total revenue less management-controllable operating expenses
Flow Through
Measure of change in profit due to change in revenue
Occupancy strength and weakness
S: Easy to compute
W: Does not consider ADR
ADR strength and weakness
S: Easy to compute
W: Does not consider occupancy
RevPAR strength and weakness
S: Easy to compute
W: Does not consider nonroom revenue or profitability
RevPOR strength and weakness
S: Considers all hotel revenue generated
W: Does not consider the number of rooms sold or profitability
Total RevPAR strength and weakness
S: Considers all hotel revenue generated
W: Does not consider profitability
GOPPAR strength and weakness
S: Assess profitability of room sales effort
W: Results depended on non-RM efforts
Flow through strength and weakness
S: Assesses profitability of incremental revenues
W: Results dependent on non-RM efforts; data may bot be readily accessible
Accurate forecasts are important for:
- Scheduling workers
- Purchasing supplies
- Managing cash flow
- Modifying the price
Three types of data to forecast with:
- Historical
- Current
- Future