Revenue Management Assignment (pdf)

Running head: REVENUE MANAGEMENT
Name of the Student
Name of the University
Author note

REVENUE MANAGEMENT2
Table of Contents
Question 1:.................................................................................................................................3
Definition of the below metrics and their calculations:.........................................................3
Question 2:.................................................................................................................................3
Key Findings of the hotel and two worst performing days:...................................................3
Question 3:.................................................................................................................................5
Ways to analyse competitors:.................................................................................................5
Question 4:.................................................................................................................................6
Yield management strategies:................................................................................................6
Question 5:.................................................................................................................................8
Communication with Stakeholders:.......................................................................................8
Question 6..................................................................................................................................9
Determination of other areas of yield management:..............................................................9
References:...............................................................................................................................10

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Question 1:
Definition of the below metrics and their calculations:
a) Occupancy: Occupancy refers to the percentage of the number of available rooms
which are sold during a specific period of time. This is calculated by dividing the
number of rooms sold during the particular period by the number of rooms available
in that particular period.
Occupancy= Rooms sold/ Rooms available.
b) ADR: ADR or Average Daily Rate is one of the most important tools used in the
hospitality industry for assessing the average rate paid for the rooms sold (STR
Global. 2018). It actually refers to way of measuring the average rate which is paid
for the rooms which are sold and it is calculated by dividing the revenue received
from the rooms by the number of rooms sold.
c) RevPAR: RevPAR refers to the revenue per available room. It is calculated by
dividing the amount of revenue available from the rooms by the total number of
rooms which are available in a specific period (STR Global. 2018). It is the measure
of the amount of revenue available from the rooms of the various hotels in the
hospitality industry in a specific period of time.
RevPAR: Room revenue/ Number of rooms available.
Question 2:
Key Findings of the hotel and two worst performing days:
For the findings of the performance of the subject company against that of the
competitors, data has been taken from the STR reports of the last 28 days. This has
been provided below:

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The main findings of the performance of the hotel against that of the competitors are
as follows:
 Occupancy Index: Here, the occupancy index has been analysed. It refers to
the Measures of hotel Occupancy (MPI). It refers to the measurement of the
occupancy performance of the hotel in relation to the performance of a group
of competitors. An MPI greater than 100 shows a major increase over the
competitor’s occupancy performances. In this regard, the hotel has performed
exceptionally well as is evident from the occupancy indexes of the days
mentioned in the report, which have been more or less above the 100 index.
 Average Rate Index: It assists in measuring a hotel’s ADR performance in
relation to the total group of hotels. If the ARI is expected to be in the range of
100, when compared to the rest of the competitive group, then it is described
as ‘fair share’, which bears positive outcome of the hotel involved. A greater
ARI represents a higher amount of share in the competitive group. It is
calculated by dividing the subject hotel ADR by total group of hotels *100. In
the case of the current hotel, it stands at 60.58 ((42.20/69.65)*100). The hotel
needs to improve in this front as it is below the industry mark of 100.