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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- Fall '07
- Yield management