BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Average Directed Return Cost, the standard cost of charging back the client for any returns
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Annual Daily Revenue Cost, the standard cost paid annually for employees
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Average Daily Remuneration Cost, the standard cost based on Grade, Country, BU (salary and surcharge), part of Direct costs
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Adjusted Daily Rate Cost, the standard cost of an employee based on Grade (salary)
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Detailed explanation-1: -The ADR formula is: Room revenue / Number of rooms sold. Just remember to exclude any complimentary rooms or rooms occupied by staff members. ADR is important because it’s one of the primary metrics used to help you gauge the success of your hotel and how you measure against your competition.
Detailed explanation-2: -The definition of hotel ADR is simple: It stands for average daily rate, and it’s used to measure the average revenue that a hotel receives for each occupied guest room per day. By measuring the ADR for your property, you’re able to see the average rate that comes from all occupied rooms.
Detailed explanation-3: -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.
Detailed explanation-4: -ADR (Average Daily Rate) ADR is used to calculate the average rental revenue per occupied room at a given time. To find ADR, divide your total room revenue by the number of rooms sold. For example, if you sold 5 rooms out of your 10-room hotel and your total revenue was $2, 000, then ADR would be $400.