Paige Vincent is the RM at the City Center Novotel. For over 12 months, she hasb
ID: 2777386 • Letter: P
Question
Paige Vincent is the RM at the City Center Novotel. For over 12 months, she hasbeen working hard to improve the performance of her hotel. Paige just received thefollowing performance data. Help her understand the revenue optimization trendsfor her property by completing the chart and then answering the questions that follow.
City Center Novotel Performance:
Occupancy % Novotel Comp Set Index This month 57.2 58.1 ? Last 3 months 55.1 57.7 ? Last 12 months 51.3 55.6 ? ADR This month 266.57 270.15 ? Last 3 months 244.91 269.69 ? Last 12 months 231.45 268.95 ? RevPAR This month ? ? ? Last 3 months ? ? ? Last 12 months ? ? ?Explanation / Answer
Index of occupancy is simply calculated as Occupancy of Novotel / Occupancy Of Comp Set
Similarly Index of ADR( Average daily rate ) is also calculated in the same manner i.e. ADR of Novotel / ADR Of Comp Set
Now, RevPAR (i.e. Revenue Per Available Room) = Occupancy % * Average Daily Rate.
This Makes sense because one room if fully occupied would fetch you the ADR value. But if the occupancy is vacant (i.e. less than 100%) you will earn Occupancy % * ADR
Now index of RevPAR is also calculated in the same manner
Occupancy % Novotel Comp Set Index This month 57.2 58.1 98.45% Last 3 months 55.1 57.7 95.49% Last 12 months 51.3 55.6 92.27% ADR This month 266.57 270.15 98.67% Last 3 months 244.91 269.69 90.81% Last 12 months 231.45 268.95 86.06% RevPAR This month 152.48 156.96 97.15% Last 3 months 134.95 155.61 86.72% Last 12 months 118.73 149.54 79.40%Related Questions
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