BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -It refers to a chart indicating occupancy % necessary to achieve equivalent net revenue, given different discount levels. Discount grids are used to assist management in evaluating room rate discounting strategies.

Detailed explanation-2: -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))

Detailed explanation-3: -FORMULA 4: POTENTIAL AVERAGE RATE It is the collective statistic that effectively combines the potential average rates, multiple occupancy percentage, and rate spread. It is determined in 2 steps. The first step involves multiplying the rate spread by the hotel’s multiple occupancy percentage .

Detailed explanation-4: -Minimum length of stay (MLOS) A restrictor that requires that a reservation is made only for at least a specified number of consecutive nights. It allows the hotel to develop a relatively even occupancy pattern during high demand periods or special events.

Detailed explanation-5: -ADR – An occupancy ratio derived by dividing net room’s revenue by the number of rooms sold 3. Average rate per guest – An occupancy ratio derived by dividing net rooms revenue by the number of guests 4.