yieldrevenuerealizedroomssoldxadr

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Unformatted text preview: e secured 100% of available rooms are sold at their full rack rate (highest room rate posted for a room in a hotel) Revenue Realized Number of Rooms Sold x Actual Rate Revenue Potential Number of Rooms Available for Sale x Rack Rate Yield = Revenue Realized (# Rooms Sold x ADR) Revenue Potential (# Rooms Available x Rack Rate) 13 HOSPITALITY PROFILE HOSPITALITY PROFILE DEBRA KELLY ­ The Sheraton Parsipanny Hotel in Parsipanny, NJ 14 Components of Revenue Management (cont’d.) Yield = Revenue Realized (# Rooms Sold x ADR) Revenue Potential (# Rooms Available x Rack Rate) See p. 172 in text for demonstration of Yield formula Compare and contrast the concepts of yield and occupancy percentage (refer to Tables 6­1) p. 172 and (6­2) p.173 15 Optimal Occupancy and Optimal Optimal Occupancy and Optimal Rate Optimal occupancy­ Achieving 100% occupancy with room sales which will yield the highest ro...
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This note was uploaded on 02/10/2014 for the course HA 210 taught by Professor Shelton during the Fall '07 term at N. Arizona.

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