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Flashcards in Rooms - Chapter 4 Deck (23):
1

average daily rate

An occupancy ratio derived by dividing net rooms revenue by the number of rooms sold.

2

average rate per guest

An occupancy ratio derived by dividing net rooms revenue by the number of guests.

3

competitive set

The group of hotels in a market that provide the most important competition for a hotel.

4

daily report of operations

A report that summarizes the hotel’s financial activities during a 24-hour period and provides insight into revenues, receivables, operating statistics, and cash transactions related to the front office; also known as the manager’s report.

5

forecasting

The process of predicting events and trends in business; typical forecasting for the rooms division includes room availability and occupancy.

6

house count

The forecasted or expected number of guests for a particular period, sometimes broken down into group and non-group business.

7

Hubbart Formula

A bottom-up approach to pricing rooms; in determining the average price per room, this approach considers costs, desired profits, and expected rooms sold.

8

income statement

A financial statement that provides important information about the results of hotel operations for a given period of time.

9

market condition approach

An approach to pricing that bases prices on what comparable hotels in the hotel’s competitive set are charging for a similar product.

10

multiple occupancy percentage

The number of rooms occupied by more than one guest divided by the number of rooms occupied by guests.

11

multiple occupancy ratio

A measurement used to forecast food and beverage revenue, indicate clean linen requirements, and analyze daily revenue rate; derived from the multiple occupancy percentage or by determining the average number of guests per rooms sold; also called the double occupancy ratio.

12

occupancy percentage

An occupancy ratio that relates the number of rooms sold to rooms available for sale during a specific period of time.

13

occupancy ratios

A measurement of the hotel’s success in selling rooms; typical occupancy ratios include average daily rate, revenue per available room, average rate per guest, multiple occupancy statistics, and occupancy percentage.

14

operating ratios

A group of ratios that assist in the analysis of hospitality operations.

15

overstay

A guest who stays after his or her stated departure date.

16

rack rate

The standard rate the property establishes for a particular category of rooms.

17

revenue per available customer (RevPAC)

A revenue management measurement that focuses on revenue per actual guest.

18

revenue per available room (RevPAR)

A revenue management measurement that focuses on revenue per available room.

19

room rate variance report

A report listing rooms that have not been sold at rack rates.

20

rule-of-thumb approach

A cost approach to pricing rooms in which the room rate is set at $1 for each $1,000 of construction and furnishings cost per room, assuming an occupancy of 70 percent.

21

stayover

A room status term indicating that the guest is not checking out today and will remain at least one more night; a guest who continues to occupy a room from the time of arrival to the stated date of departure.

22

understay

A guest who checks out before his or her stated departure date.

23

yield statistic

The ratio of actual rooms revenue to potential rooms revenue.