BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The percentage of rack rate that the hotel actually receives is contained in the hotel’s achievement factor (AF), also called the Rate Potential Percentage. Achievement factor = Actual Average Rate Potential Average Rate.

Detailed explanation-2: -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.

Detailed explanation-3: -Achievement Factor means the percentage to be used in determining a Participant’s deferred cash incentive Award for achieving a specified percentage of the pre-established Performance Objectives.

Detailed explanation-4: -The rack rate is the normal price of a hotel room, before any discount. A second room can be reserved at a 50 percent discount off the rack rate. Rack rates for a hotel room start at $220 a night. The rack rate is the highest price at the hotel, without any discounts.

Detailed explanation-5: -Room Occupancy Percentage (ROP) is the rooms occupied divided by rooms available.