Chapter 13: Revenue Management Discount Grids • Discount grids are
used to assist management in evaluating room rate discounting strategies
. • To prepare a discount grid, first calculate the marginal cost of providing a guestroom.
What are various types of discount allocation in front office?
| BAR Level Open / Close when Occupancy Between | BAR -01 0% TO 25 % | BAR -02 26 % TO 35 % | BAR – 03 36% TO 50% | BAR – 04 51% TO 75% |
|---|
What is discount in front office?
Discounts can be applied to an
individual item
, a whole check, or (in 6.50. x), a pre-defined group of items. These are configurable in Back Office. To apply a discount, navigate to the More Functions page (or whichever sublist your Discount buttons appear on) and select the Discount you would like to apply.
What is Club agreement in front office?
Club agreement: this involves
the ownership through purchases of shares of which shareholders receive points in proportion to the value of the investments
. These points entitle them to the use of any apartment at any time of the year.
What is revenue in front office?
• Revenue:
Money that hotel collects from the sale of rooms or from the sales of product & services
.
What are the high demand tactics?
- Close or restrict discounts – Analyze discounts and restrict them as necessary to maximize the average rate. …
- Apply a minimum length of stay restrictions carefully – A minimum length of stay restriction can help a property increase room nights.
How do you do upselling in front office?
- Understand your guests. Understand your guests by carefully reviewing profiles and developing buyer personas. …
- Reconfirm their choice. One way to instantly turn a guest away from an upsell is by disparaging their current arrangements. …
- Quote incremental rates. …
- Ask good questions.
What does RevPAR stand for?
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.
What is achievement factor in front office?
The Room Achievement factor is also known as Rate Potential Percentage of a hotel, is defined as the percentage of the Rack Rate that the hotel actually receives by selling their rooms. Room Achievement factor is
calculated by dividing the Actual Average Rate (ARR or ADR) by the Potential Average Room Rate
.
What’s a rack rate?
The hotel rack rate is
the price that a hotel charges for a room before any discounts have been applied
. It is sometimes referred to as the published rate and is usually set artificially high, which means that discounts can look extremely generous by comparison.
How do you calculate RevPAR?
To calculate your RevPAR, simply
multiply your average daily rate (ADR) by your occupancy rate
. Say you have an occupancy of 80%, and an ADR of €100 – your RevPAR will be €80. Alternatively, you can divide the number of available rooms in your property by total revenue from that night (or specified time period).
What is wash down in front office?
Wash down
– Blocking fewer rooms than the number requested by a group
, based on previous group history. Guest Cycle – A division of the flow of business through a hotel that identifies the physical contacts and financial exchanges between the guests and the hotel.
What is rooming list in front office?
The Rooming List:
A roster of guests and their lodging needs presented to a hotel by a group prior to a meeting
.
What is upselling in front office?
Upselling refers to
persuading a customer to buy additional products and services
, something that they didn’t plan to buy initially. Upselling in the front office and front desk upselling are the same things. They encompass selling additional services or room upgrades to guests that arrive at a hotel.
How do you calculate par in front office?
Rate (PAR) is a collective statistics that combines the potential average rate, multiple occupancy percentages and the rate spread. There are two steps involved to calculate the potential average rate: Step 1: Is
by multiplying the Rate Spread by the hotel’s Multiple Occupancy Percentage
.
How do you calculate ADR?
Calculating the Average Daily Rate (ADR)
The average daily rate is
calculated by taking the average revenue earned from rooms and dividing it by the number of rooms sold
. It excludes complimentary rooms and rooms occupied by staff.
