BUISENESS MANAGEMENT
INVENTORY CONTROL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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ADR and Occupancy would increase, and RevPAR would be unchanged
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RevPAR and Occupancy would increase, and ADR would be unchanged
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ADR and RevPAR would increase and occupancy % would be unchanged
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ADR and RevPAR would decrease and occupancy % would increase
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Detailed explanation-1: -It acts as an indicator of the hotel’s overall performance and profits. ADR helps hotel owners determine the average rate of the rooms sold over a specific period of time. This duration can be variable – it may be 30-days, a quarter, or even a year.
Detailed explanation-2: -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-3: -Many other factors can affect your occupancy rate, including room rates, the guest experience, your online reputation, room cleanliness and the quality and availability of your facilities.
Detailed explanation-4: -Revenue per available room (RevPAR) – A metric used to assess how well a hotel has managed their inventory and rates to optimize revenue. Calculated by multiplying occupancy by ADR.