Difference between revisions of "Revenue per room"

From Emerald Forest Hotel
Jump to navigation Jump to search
Line 38: Line 38:


* Not exact
* Not exact
Tryin to analyze the revenues of the rooms as shown in the operating review, might bring some differences to what you expect. This due to -cancellations, overbookings, group-reductions, no shows, friends & relatives. So a few % difference in these revenues is normal......
Trying to analyze the revenues of the rooms as shown in the operating review, might bring some differences to what you expect. This due to -cancellations, overbookings, group-reductions, no shows, friends & relatives. So a few % difference in these revenues is normal.


== Relationship with net profit ==  __NOEDITSECTION__  
== Relationship with net profit ==  __NOEDITSECTION__  

Revision as of 14:47, 1 June 2018

→ Go! Category:Hotel info
→ Go! Running competition

Revenues

If we look at the total of the revenues as explained in the operating review this has been € 2.866.902 in the history. In the same year, the occupancy rate of the rooms was 50%. This means we can make the next ratio's

  • RevPAR

So we look at the (total) revenues Per Available Room.
We have 100 rooms times 365 days, so a capacity of 20,748 per year.
The total of revenues is as you take over € 2,866,902
So per night an average revenue of € 138.17 on all available rooms.

Let's look at the (total) profit Per Available Room.
We have 100 rooms times 365 days, so a capacity of 20,748 per year.
The total of profit is as you take over € 436,307
So per night an average profit of € 21.02 on all available rooms.

If you want to read more on this, check this page.

  • RevPOR

So we look at the (total) revenues Per Occupied Room.
We have 100 rooms times 365 days, so a capacity of 20,748 per year and 50% occupied, so 10,374 occupied rooms
The total of revenues is as you take over € 2,866,902
So per occupied night an average revenue of € 276.35 per occupied room.

Let's look at the (total) profit Per Occupied Room.
We have 100 rooms times 365 days, so a capacity of 20.748 per year and 50% occupied, so 10,374 occupied rooms.
The total of profit is as you take over € 436,307
So per night an average profit of € 42.05 per occupied room.

If you want to read more on this, check this page.

  • Example

So as a conclusion of these calculations: if you occupy one additional room an indication of the additional revenues could be 365 x 1 room x € 276.35 so € 100,867. And an indication of the additional profit: 365 x 1 room x € 42.05 so € 15,348.
To be more specific in this look at the file on occupancy rate and look for the difference between fixed costs and variable costs.

  • Not exact

Trying to analyze the revenues of the rooms as shown in the operating review, might bring some differences to what you expect. This due to -cancellations, overbookings, group-reductions, no shows, friends & relatives. So a few % difference in these revenues is normal.

Relationship with net profit

Of course there is a strong relationship with the Net profit, costs made in your decisions and the occupancy rate.


→ GO! Top of this page

Emerald Forest Hotel offering an emerald hotel experience! | Run your own hotel in this management simulation.