Why is it important to know your hotel profitability
The key benefit is that it provides you with insights to identify financial performance weaknesses and strengths.
You can then act accordingly to make improvements, such as through cutting hotel costs, enhancing underperforming areas, or investing in new revenue growth streams..
What is an example of a rule of thumb
The definition of a rule of thumb is a generally accepted guideline, policy or method of doing something based on practice rather than facts. An example of a rule of thumb is the general guideline that you don’t wear white after Labor Day.
What is discount in front office
The word discounts mean a deduction of nominal value or price of anything for payment before it is due or for prompt payment. … Discounted offers to various categories of guest in addition to corporate and conferences organizers, discounted rates are also given to senior citizen and government officials etc.
What is thumb rule in front office
Rule of thumb approach: The rule of thumb approach sets the rate of a room at Rs. 1 for each Rs. 1000 spent on the project cost per room, assuming 70 % occupancy. In case the occupancy percentage is expected to be more than 70% then the rate of a room can be less than Rs.
What is full pattern length of stay
Full-Pattern Length of Stay (FPLOS) pricing is the new buzz word for the hotel industry. FPLOS presents a unique price point based on the arrival date and length of stay of the query, uniformly assigned to each date of the query.
How is occupancy calculated
Occupancy rate is the percentage of occupied rooms in your property at a given time. It is one of the most high-level indicators of success and is calculated by dividing the total number of rooms occupied, by the total number of rooms available, times 100, creating a percentage such as 75% occupancy.
What is the purpose of upselling
Upselling is a sales technique where a seller invites the customer to purchase more expensive items, upgrades, or other add-ons to generate more revenue.
How do you do upselling in front office
Upselling Tips For Your Front-Desk StaffUnderstand your guests. Understand your guests by carefully reviewing profiles and developing buyer personas. … Reconfirm their choice. … Quote incremental rates. … Ask good questions. … Use rate framing. … Offer pre-arrival services. … Create a sense of urgency. … Know your hotel.More items…•
What is revenue management in front office
Revenue management refers to the strategic distribution and pricing tactics you use to sell your property’s perishable inventory to the right guests at the right time, to boost revenue growth. Other products such as your amenities and food and beverage offerings will also come into the picture.
What are the 3 strategic pillars of revenue management
The three tools — marketing automation, sales effectiveness and analytics — combine to provide the tools a company needs to implement revenue performance management strategies.
What are the goals of revenue management
Revenue management helps to predict consumer demand to optimize inventory and price availability in order to maximize revenue growth. The purpose of Revenue Management is not selling a room today at a low price to sell it tomorrow at a higher price.
What is another word for rule of thumb
“I want to suggest that this is in fact a rather useful rule of thumb for linguists and philologists.”…What is another word for rule of thumb?criterionhit and misspragmatismtrial and errorunwritten rule
What is upselling in front office
Upselling is when a hotel prompts additional services to guests, such as a session at the spa, a breakfast buffet, etc. But hotels can also upsell rooms (otherwise known as room upgrade) to guests with the same intention as with upselling.
What is minimum length stay
A Minimum length of stay through restriction limits availability by specifying a number of nights that must be booked for stays that include the restriction date in any part of the stay date range.
How do you calculate RevPAR
RevPar is calculated by multiplying a hotel’s average daily room rate by its occupancy rate. It is also calculated by dividing total room revenue by the total number of rooms available in the period being measured. RevPAR reflects a property’s ability to fill its available rooms at an average rate.
What is high demand tactics
Potential High Demand Techniques: Monitor New Business Bookings and use these changed Conditions to reassign Room Inventory (As Occupancy increases, consider closing out Low Room Rates and open them Only when Demand decreases) Consider establishing a Minimum Number of Nights per Stay.
How do you calculate room occupancy
The occupancy load is calculated by dividing the area of a room by its prescribed unit of area per person. Units of area per person for specific buildings can be found in the chart at the end of this article. For instance, the chart dictates that dormitories require 50 square feet of floor area for every room occupant.
What is thumb rule method
A rule of thumb is a heuristic guideline that provides simplified advice or some basic rule-set regarding a particular subject or course of action. It is a general principle that gives practical instructions for accomplishing or approaching a certain task.
What is an example of upselling
Upselling is focused on upgrading or enhancing the product the customer is already buying. … For example, a housekeeping service might upsell a customer buying a weekly cleaning package by offering a package with more rooms, and cross-sell by also offering a carpet deep cleaning service.
What are the elements of revenue management
Revenue management requires forecasting various elements such as demand, inventory availability, market share, and total market. Its performance depends critically on the quality of these forecasts.
What is equivalent occupancy
Equivalent Occupancy = (Current Occupancy Percentage) * ((Rack Rate – Marginal Cost) / (Rack Rate * ((1 – Discount Percentage)) – Marginal Cost) Equivalent Occupancy = (Current Occupancy Percentage) * ((Contribution Margin) / (New Contribution Margin))