MANAGEMENT

BUISENESS MANAGEMENT

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What is ADRC?
A
Average Directed Return Cost, the standard cost of charging back the client for any returns
B
Annual Daily Revenue Cost, the standard cost paid annually for employees
C
Average Daily Remuneration Cost, the standard cost based on Grade, Country, BU (salary and surcharge), part of Direct costs
D
Adjusted Daily Rate Cost, the standard cost of an employee based on Grade (salary)
Explanation: 

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: -ADR is calculated by dividing room revenue by rooms sold. The metric is of course applicable for any currency.

Detailed explanation-3: -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-4: -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.

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