REVENUE MANAGEMENTIntroduction STR report is one of the critical tools to monitor the performance of the hotel in comparisonwith the competition using key performance metrics (Mauri, 2013). In the given case, a STRreport has been represented for a city hotel for a period of 28 days and the same has beenpresented in a weekly manner. The objective of the given report is to analyse the performanceof the hotel and suggest various yield maximization strategies. Further, the communicationplan with regards to the key stakeholders has also been analysed coupled with other areas.Definition of key termsa)Occupancy – Occupancy may be defined as the ratio of rooms that have been occupied tothe room available in percentage terms. This is calculated for a given time period usuallyon a monthly basis, seasonal basis or any other suitable classification basis (Hayes andMiler, 2010). The numerical formula of occupancy rate is highlighted below with the aidof a numerical example.Occupancy Rate = (Rented rooms / Available rooms in the period under consideration)*100For instance, if in a given hotel, there are 300 rooms and on an average 280 rooms areoccupied on a daily basis, then the occupancy rate = (280/300)*100 = 93.33%b)ADR or Average Daily Rate – This may be defined as average revenue per room that isrealised by the given hotel under consideration. This is measured for a given day so as tohighlight the demand as ADR would be higher in the peak season and lower in the leanseason. The numerical formula for ADR is indicated below (Verret, 2008).ADR or Average Daily Rate = (Total revenue from rooms/ Occupied rooms on a given day) For instance, if for a given day, the total revenue collected from rooms is $ 1 million andthere are 3,000 rooms available, then ADR = 1,000,000/3000 = $ 333.33 c)RevPar or Revenue per available room – This is a critical performance parameter in thehotel industry as it takes into consideration both the occupancy and also the ADR intoconsideration. This provides an estimate of the average daily revenue generated from eachroom which is available. The key difference between ADR and RevPar is that while theformer computes the revenue based on number of occupied rooms, the latter takes intoconsideration the number of available rooms. This makes RevPar a more holistic

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