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Flashcards in Rooms - Chapter 4 Deck (23):

average daily rate

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


average rate per guest

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


competitive set

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


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.



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


house count

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


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.


income statement

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


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.


multiple occupancy percentage

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


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.


occupancy percentage

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


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.


operating ratios

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



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


rack rate

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


revenue per available customer (RevPAC)

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


revenue per available room (RevPAR)

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


room rate variance report

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


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.



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.



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


yield statistic

The ratio of actual rooms revenue to potential rooms revenue.