Q1. A 200 room hotel in Delhi will rent all its rooms if it charges rupees 125 per night for a
room. However, from past experience the manager knows that for each 5 rupees increase in rate
per night per room, 4 rooms remain unoccupied per night. What rent per room will maximize
total revenue per night
Answers
Answer:
Revenue per available room (RevPAR) is a metric used in the hospitality industry to measure hotel performance. The measurement is calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate. RevPAR is also calculated by dividing a hotel's total room revenue by the total number of available rooms in the period being measured.RevPAR is a metric used in the hospitality industry to asses a property's ability to fill its available rooms at an average rate. An increase in a property's RevPAR means that its average room rate or its occupancy rate is improving. However, an increase in RevPar does not necessarily mean better performance.
Step-by-step explanation:
ADR (Average Daily Rate) or ARR (Average Room Rate) is a measure of the average rate paid for the rooms sold, calculated by dividing total room revenue by rooms sold. Some hotels calculate ARR or ADR by also including the complimentary rooms this is called as Hotel Average Rate.Calculated your occupancy rate by dividing the total number of rooms occupied by the total number of rooms available times 100, e.g. 75% occupancy