In the 1970s I really wanted to work in Hotel Management. I fell into some short-term and part-time jobs that included working on the front desk of the biggest hotel in Montreal. I later learned bartending and worked as banquet waiter.
in 1979 I completed the first year of Hospitality Management at BCIT in Burnaby, British Columbia; but fate intervened that summer and I never started the second year.
Eventually I completed a Software Programmer diploma and did a lot of database and software development work. I long searched for employment that combined all my interests but that was not to be. When I did get software work it was usually for something like an insurance company or a car assembly plant.
About 1992 — during a period of severe under-employment — I decided that there might be a market for flexible management software aimed at the small to medium priced hotel or motel. At that pre-Internet point in time there were many options available for big hotel chains but not much for the smaller business.
I wrote a set of Notes setting out all the things that could be in in the software. While they do use the term 'Requirements' this is more a list of possibilities. At that time I was using Blue Gem as my business name and proposed Room Gem as the package name. I set out to find investors and discovered — not for the first time — that I was a lousy salesman with few financial resources. The actual software was never written.
Moving forward almost thirty years and I found myself describing my efforts online. I dug up my old backups and decided to put my old notes into a blog. I have only made a few formatting changes. You will see many questions were left for further investigation.
(The reformatting lost the footnotes which gave credit to The Hubbart Formula for Evaluating Rate Structures of Hotel Rooms, 1952. 'Available from the American Hotel & Motel Association')
Enjoy.
Room Gem Notes
COMPUTERIZED
HOTEL PROPERTY MANAGEMENT
SYSTEM REQUIREMENTS
I. ROOM GEM SYSTEM PROGRAMMING GOALS
A. QUICK AND EFFICIENT.
a. Vitally important to eliminate front desk bottlenecks.
b. Information must be instantly available on-line.
c. Copies of vital files should be downloaded to local computers.
1. In case of network problem information is still available.
d. No interference during shift changes.
e. Front desk entry screen should have a split screen mode.
1. would allow two clerks to efficiently use the same terminal.
2. this is quite important at smaller facilities.
B. FLEXIBLE AND EASY TO USE.
a. Regular maintenance to be done by front desk or accounting staff.
b. Multiple language displays are useful in some departments.
c. Full provision
1. for multiple currencies.
2. for multiple locations and companies.
3. and multiple tax rates.
C. ACCURATE DATA.
a. Essential to check for duplications and errors.
1. All data must be compared and corrected at time of entry.
2. Data corrections required once only.
D. EFFICIENT SOFTWARE PROGRAMMING.
a. Will allow easy software customization and maintenance.
b. Object oriented structured programming is required.
c. Use report writing and screen painter wherever possible.
d. Multi-user programming is done from the start.
1. System wide record locking.
2. Log off terminals after period of non-use.
E. END USER HELP.
a. Context sensitive on-line help must be available in all areas.
b. Software service required 24 hours a day.
1. Dial-in software control required.
2. Pagers & cellular phones allow full time programmer access.
F. DATA INTEGRATION & REDUNDANCY.
a. Data must be freely shared throughout the system.
1. Staff scheduling fully integrated with reservation information.
2. Management should find it easy to compare data from all departments.
b. Data elements should be stored in one location only (except for backups).
1. Data changes in one area will affect reporting in other areas.
II.
A. BACKUP COMMUNICATIONS AND COMPUTER SYSTEMS.
a. We need a manual backup system available 24 hours per day.
b. Audit files keep track of all transactions.
c. Transaction commitment and roll back
1. interrupted transactions to be cancelled or completed.
¨ no partially completed transactions in system.
¨ accurate indexes.
1. backup system to allow transaction roll back to any point in time.
A. EFFECTIVE SECURITY.
a. Encrypted password protection required.
1. with several levels of security.
b. Program files are compiled to prevent program tampering.
c. System level protection required on phone-in data lines.
B. NIGHT AUDITOR POSITION ELIMINATION.
a. Possible and desirable at most locations.
b. Reasons.
1. High responsibility position done under poor working conditions.
¨ low worker morale.
¨ high staff turnover.
¨ work done at night is more difficult, mistakes are common.
1. Audit is done under difficult front office conditions.
¨ accounting more efficient when done in accounting office.
1. Audit sometimes uncompleted before early morning checkouts.
¨ this means auditor is using front office during busy checkout time.
1. Higher use of credit cards.
¨ means fewer facility charges to guest folio accounts.
¨ means it is easier to correct billing mistakes after checkout.
1. Night staff better utilized handling serious late night problems.
a. Methods.
1. Most guest charges should be entered by facility staff.
¨ staff entering data require personal data entry accuracy.
¨ each cashier responsible for balancing at end of shift.
1. Credit card charges and cash count corrections done in daytime.
¨ can easily be done by early morning accounting staff.
1. Computer system will automatically do scheduled new day turnover.
¨ tape backups started by afternoon accounting staff.
¨ rooms are posted automatically to new day's room charges file.
¨ no interference between day turnover and front desk work.
¨ vouchers and cash paid-outs can be balanced several times a day.
¨ night staff only responsible for late night charges.
¨ all reports can be run for any period in time.
¨ means that backup copies are not needed.
¨ only summary reports are printed. Done during the day shift.
¨ other reporting is done better on display screen.
1. Day end turnover can be at any set time.
¨ does not have to be the same time as room posting time.
¨ perhaps at noon instead of middle of the night.
a. Remaining Night Audit Duties.
1. A few night auditing duties will still have to be done at night.
¨ confirming cash register readings.
¨ preparation of folios for express check-out.
¨ night manager duties.
1. These can all be done by the remaining front office & security staff.
COMPUTER SYSTEM FEATURES
I. DEPARTMENTS
A. Integrated information in all departments:
a. Front Office.
b. Reservations.
c. Food, Beverage & Catering.
d. Mail / Fax / Phones.
e. Housekeeping & Repairs.
f. Laundry / Valet.
g. Security.
h. Accounting, Personnel & Payroll.
i. Management & Planning.
j. Sales, Publicity & Public Relations.
II. RESERVATIONS
A. RESERVATION REQUEST.
a. MULTIPLE SOURCES.
1. Letter.
2. Telex, telegram or fax.
3. Phone.
4. Walk-in.
5. Travel agent, airline or housing bureau.
6. Convention or group.
7. Central reservation office or chain office.
b. PREFERENCES.
1. Floor - higher or lower.
2. Location - front / back / view.
3. Adjoining or connecting rooms / same floor.
4. Smoking or non-smoking.
c. MEAL PLANS.
1. American Plan (AP & MAP).
2. European Plan (EP).
3. Convention & Group Meals.
d. LENGTH OF STAY, ARRIVAL & DEPARTURE DATES.
1. Redundancy for confirmation.
e. TIME OF ARRIVAL.
1. Guaranteed or confirmed.
f. NUMBER OF PEOPLE.
1. Cots, twin, double, double double, etc.
g. IDENTIFICATION.
1. Name, address & company affiliation.
h. CONFIRMATION.
1. Is mailed with all data displayed.
¨ including check-in and check-out time information.
1. Only a range of room rates is confirmed for hotel reservations.
¨ other types of reservations require a set rate.
a. PERMANENT RESERVATIONS.
1. Permanent live-in hotel guest.
2. Business traveller on a regular schedule.
b. RIDING RESERVATIONS.
1. Uncertain date of arrival.
c. SPECIAL FACILITIES & REQUESTS.
1. Convention or Group Delegate.
2. TA (Travel Agent).
3. VIP. also called SPATT (Special Attention) or DG (Distinguished Guest).
A. FILE STRUCTURE.
a. Reservations must be allowed any time in the future.
1. Future reservations will be confirmed only as to type and class.
¨ they will be compared to RZFUTURE file with one record for each date.
¨ this file will also have future pricing information.
1. Files will be opened for room assignment several weeks in advance.
¨ the file names for these files will indicate date.
¨ room assignments will be made for all reservations open for date.
¨ date record for previous day will be deleted.
1. File records for days completed will be moved to audit files.
I.
II. FRONT OFFICE COMPUTERIZATION.
A. FRONT DESK REGISTRATION.
a. QUESTIONS ASKED GUEST.
1. Name.
2. Address.
3. Company.
4. Method of payment.
5. Room preference.
¨ room type.
¨ room number.
¨ smoking or non-smoking, etc.
1. Number of guests.
2. Group name & id number.
3. Departure date.
4. Automobile id.
¨ for parking and motel identification.
a. INFORMATION PROVIDED GUEST.
1. Liability disclaimer.
2. Hotel facility specials.
3. Perhaps multi-language.
b. RESERVATION CARD.
1. Presented for signature and confirmation.
c. PAYMENT METHOD.
1. Displayed in order of facility preference.
2. Computerized confirmation after credit card presentation
¨ approval number saved with request information.
1. Take account of both hotel and individual floor limits.
a. MEAL PLANS REQUESTS.
1. American Plan (AP) and Modified American Plan (MAP) facilities.
¨ use a default BLD code that can be modified by the clerk.
a. IDENTIFICATION CARDS.
1. Some properties provide ID cards to validate guest at hotel facilities
or when signing charges.
b. KEYS.
1. Often computerized with electronic door locks.
c. BELL SERVICE / DOORMEN / CONCIERGE.
1. Must be informed of the guest names and room numbers.
2. Commonly done with a copy of registration slip.
¨ could also be done with a bell captain desk terminal.
1. Computer should keep track of front rotation.
2. Concierge could use terminal for ticket sales and reservations.
I.
a. GROUP CHECK-IN.
1. Room Gem should print
¨ key envelopes coded by groups.
¨ in house ID cards.
¨ group baggage tags.
¨ and rooming lists.
a. PAYMENT IN ADVANCE.
1. Guest is flagged to prevent charges made in other departments.
A. ROOM ASSIGNMENTS (done by the Room Clerk using Room Rack display).
a. REGISTERED, NOT ASSIGNED (RNA).
1. RNA means the guest arrived early and no room is available.
2. While they are waiting the hotel may allow folio charges.
b. BLOCKING & ASSIGNING ROOMS.
1. Room clerk selects from a list of appropriate available rooms.
2. Room Gem should assist management goals such as:
¨ rotating room usage equally.
¨ increasing occupancy in higher rate rooms.
¨ restricting wings or floors to save energy.
1. It has been difficult to manipulate rooms with a computer system
room rack "solitaire" is used to manipulate groups and vacancies into blocks.
¨ this should be easy to do with a mouse and a graphic display.
1. Display should use the same order as the actual physical order.
2. Reserved rooms are blocked before guest arrival
¨ this must be flexible enough for last minute changes.
¨ display must make obvious which rooms are blocked or occupied.
a. SELL-UP.
1. Room Gem should assist sell-up to higher priced rooms.
b. SHOWING ROOMS.
1. It is the best way to sell a room. It can be done
¨ with a screen monitor at the desk.
¨ or with computer printed charts.
a. ROOM RACK SYMBOLS & COLOURS.
1. Modifiable by management according to individual needs.
2. Colours should flag special types of rooms such as
¨ special views.
¨ corner rooms.
¨ and adjoining rooms.
1. Standard Symbols.
¨ S=Single
¨ D=Double
¨ K=King
¨ Q=Queen
¨ St=Studio
¨ H=Sofa(Hide-a-bed)
¨ DD=Twin-Double or Double-Double.
¨ Perhaps we should use such graphic symbols such as ³, º, K, Q, », ±, _.
1. Other symbols might be needed for Tub and/or shower etc.
2. "M/M & FAM" = Mr. Ms. & family.
3. there could be a gradual size or colour progression in the room status symbols.
a. ROOM CHANGES.
1. Ideally room changes should be a mouse drag & drop operation.
2. Sometime the change is to the lobby until the new room is ready.
b. ON-CHANGE & OUT-OF-ORDER.
1. On-Change (OO) is short term (housekeeping).
2. Out-of-Order (OOO) is longer term (repairs & painting).
A. HOUSEKEEPING DEPARTMENT.
a. ROOM STATUS.
1. Must be transmitted between the front office and housekeeping.
2. Sometimes the arriving guest is given a temporary room
which can be changed to a permanent room later.
b. DISTANCE FROM FRONT OFFICE.
1. Might be far enough to require non-network communications.
c. PERSONAL INFORMATION.
1. Housekeeping normally not informed of personal guest information.
B. INFORMATION RACK DISPLAYS.
a. Arranged alphabetically for fast lookup.
b. Are required for use by phone operators etc.
c. Should include
1. people expected to arrive soon.
2. and those who have recently departed.
C. MAIL / MESSAGES / FAX / E-MAIL / TELEPHONE.
a. MAIL RACKS.
1. Used less and less in the 90's.
2. But a system to handle the guest's Fax messages is now required.
b. PHONE BILLING.
1. Smart switches allow for a direct interface with computer billing.
2. Otherwise nightly posting of phone charges is required.
I.
A. GROUPS & CONVENTIONS.
a. GROUP ID.
1. Each group needs its own unique group ID.
b. ATTENDANCE COUNT.
1. Expected number in group
¨ plus or minus actual sales difference
¨ less casualty factor (cancellations & no-shows)
¨ equals number of people actually attending.
a. RATE QUOTATIONS.
1. With flat rate all guests pay the same rate
© assignment is on best available basis (called Run of the House).
© equitable distribution required between types of rooms & rates.
1. With a spread all rates
¨ are reduced a certain number of dollars.
¨ or are reduced a certain percentage.
A. ROOM AVAILABILITY CALCULATIONS. (percentages used are management options)
a. ESTIMATED ADJUSTED STAYOVERS equals
¨ Rooms Occupied Last Night
¨ plus Complimentary Rooms (if not listed as being occupied)
¨ equals Actual Rooms Occupied Last Night
¨ less Adjusted Departures:
¨ [Announced Departures
¨ plus Estimated Understays (@6.0%)
¨ less Estimated Overstays (@2.0%)].
a. ESTIMATED ADJUSTED RESERVATIONS equals
¨ Announced Reservations
¨ plus Early Arrivals (@0.5%)
¨ less Cancellations (@2.0%)
¨ less No-Shows (@5.0%).
a. TOTAL ROOMS COMMITTED equals
¨ (Stayovers) plus b. (Reservations).
a. SPACE AVAILABLE FOR SALE equals
¨ Total Rooms in facility
¨ less Rooms Out-of-Order
¨ less c. (Total Rooms Committed).
a. ROOMS OCCUPIED TONIGHT equals
¨ c. (Total Rooms Committed) plus Estimated Walk-Ins.
A. RATE CALCULATIONS.
a. SPLIT RATES.
1. Indicates rate split between two or more guests in the same room.
2. Recorded as fraction of the full rate on each card
¨ or the full rate on one card.
¨ and a “shares with” indication on another card.
1. The system must account for late check-ins
¨ or early check-outs by one of the people sharing the room.
a. CHANGEOVER HOUR.
1. Shows when the break comes between charging for the previous night or the new day.
1. It is a management setup option and usually between 5 and 7 am.
a. HOURLY RATES.
1. Some hotels are experimenting with flexible rates
¨ an adjustment is made according to whether a person checks out
well before or well after the normal check-out time.
1. The hour could be the future basic unit of rate measurement.
a. WEEKLY & MONTHLY RATES.
1. Usually payment is prepaid.
2. Normal daily rate is posted
¨ until the deposit is almost exhausted.
¨ Then there is a reduced daily rate or free days until prepaid period ends.
1. This keeps accounting simple if the guest checks-out early.
a. DOUBLE OR TRIPLE OCCUPANCY.
1. Often charged at single rate or just slightly more.
2. The third person is often charged a flat extra charge.
3. Extra charges are also charged for cots brought into room.
b. PARLOUR ACCOMMODATION.
1. If one person occupies two connecting rooms.
¨ Do we register them once only in only one room?
¨ Perhaps this requires a master folio?
a. RATES FOR SPECIAL PEOPLE.
1. Special rate percentage reductions are offered.
2. For TA's (travel agents) this is commonly 50% off.
b. COMP & REDUCED RATES.
1. Should be recorded at the full rack rate
¨ with an accounting amount posted to a comp allowances account.
¨ to record the full cost of reduced or free accommodation.
a. DAY RATES.
1. Are commonly for 6 hours at 1/2 the full rate.
2. These options must be set up by management.
I.
II. ACCOUNTING & PAYROLL PRINCIPLES
A. ACCOUNT CODES.
a. Accounts should be accessible by a mnemonic account code.
b. There should also be a code to access external accounting systems.
B. Debit and Credit required for each transaction.
III. ACCOUNTS RECEIVABLE.
A. LEDGERS.
a. Each transaction creates a debit and a credit
1. posting to folio requires a contrary posting to either the guest or city ledger.
2. Guest ledger charges are later posted to city ledger accounts.
b. Comp Room Transactions.
1. Often there are two accounts
¨ a master A account for complimentary (or prepaid) charges.
¨ and another B account for individual charges.
a. GUEST LEDGER.
1. Transient Guests are those currently registered in the hotel.
¨ Their transactions are recorded in the Guest Ledger and posted as soon as possible.
1. Room charges are posted each night.
a. CITY LEDGER.
1. This Ledger includes
¨ accounts for customers who do not occupy sleeping rooms.
¨ usually local companies.
¨ Consolidation accounts for Guest Ledger transactions.
¨ posted at regular intervals (monthly?).
¨ Master accounts folios.
1. Master Account transactions.
¨ for tour companies.
¨ banquets and other catered events.
¨ for convention groups, etc.
¨ Options should allow posting of personal and group transactions.
1. Hotel Executive Accounts.
¨ monthly billing or payroll deduction.
1. Delinquent Accounts and Returned Cheques.
¨ reported and attempted collection.
¨ if over petty delinquent account collection limit.
¨ if uncollected then transfer to Unrecoverable Receivables.
1. Credit Card accounts.
¨ one for each type of card.
¨
a. DUE BILLS.
1. Used to handle non-billed rooms given hotels, advertisers etc.
2. Usually accepted at highest available room rate to use up quickly.
3. Should be recorded as advertising expense liability
¨ which is reduced when due bill is presented to pay room charges.
a. TRAVEL AGENCY ACCOUNTING.
1. Travel agencies must receive prompt reporting on all referred guests.
2. When agency collects room charge it must be collected from them.
3. Agency commissions must be remitted regularly.
4. Agency must get prompt notification of DNA’s (Did Not Arrive).
b. ADVANCE DEPOSITS.
1. Advance deposits should be recorded as liability until checkout.
I. CASHIER BALANCING & CONTROLS.
A. CASH REPORT ENTRY SCREEN.
a. Required to balance at beginning and end of work shift.
1. Cash on Hand.
2. Cheques, Vouchers, etc.
b. Bank is cash float for making change and cashing cheques etc.
c. Net Receipts equals Total Receipts less Total Paid-Outs.
a. Overage and Shortage
¨ is difference between Amount Actually On-Hand
¨ and Amount Should Be On-Hand.
a. Turn-In.
¨ equals Checks, Vouchers
¨ and other Non-Negotiable Items
¨ and All Cash Except the New Bank.
a. Due Back. (also known as Difference Returnable, Due Bank, Exchange or Difference Returnable).
1. is amount needed to reconstitute the Bank.
2. total of cheques, Paid-Out Vouchers and excess Cash.
b. Verification.
1. is difference between the Turn-In and the Amount Due.
A. CASHIER'S REPORT.
a. Cheque List.
1. If bank information is entered at time of presentation then a detailed list of cheques can be printed without later input.
1. List should include travellers cheques and types of payment.
a. Voucher List.
1. This would keep track of all Vouchers & Paid-Outs.
2. As in cheque list information is entered at time of posting.
I.
II. STATISTICS
A. ROOM OCCUPANCY STATISTICS.
a. HUBBART ROOM RATE FORMULA:
Operating Expenses
plus Taxes, Insurance, etc.
A. plus Depreciation (at Standard Rates on Present Fair Value eg. 15% p.a.)
plus Reasonable Return on Present Fair Value of Property (eg. 10% p.a.)
less Credits from Sources Other Than Rooms such as Income from Store Rentals, Income from Food & Beverage, Net Income from Other Operated Departments, and Miscellaneous Income
equals Amount to be Realized from Guest Room Sales to Cover Costs
and a Reasonable Return on the Present Fair Value of the Property (1).
Number of Guest Rooms Available for Rental times 365.25
times Average Occupancy Rate eg. 75%
equals Number of Rooms to be Occupied at Estimated Average Occupancy (2).
Reasonable Return (1) divided by Number of Rooms Occupied (2)
equals the Average Daily Rate per Occupied Room Required to Cover Costs
and a Reasonable Return on Present Fair Market Value (3).
As an alternative the Reasonable Return (1) could be divided by
(the total square footage available for rent multiplied by the average annual occupancy rate) to get the average rate per square foot.
This rate would then be multiplied by the square footage of each type of room.
a. IDEAL ROOM RATE:
According to this approach the hotel should sell an equal percentage of rooms in each rate class instead of filling from the bottom up. This spread produces an average rate equal to the average rate earned when the hotel is completely full. Differences between the ideal average rate and actual rates for each rate group could mean poor salesmanship, housekeeping or a problem with the rate structures.
A sample calculation:
200 rooms @ $50 single and $65 double.
300 rooms @ $65 single and $84 double.
100 rooms @ $70 single and $92 double. Total of 600 rooms.
At 70% occupancy and 10% double occupancy the ideal rate is computed:
From the bottom up:
200 rooms @ $50 + 20 rooms @ $15 (double = $10,300
220 rooms @ $65 + 22 rooms @ $19 supplement) = 14,718
420 (70% occupancy) 42 (10% double occupancy) $25,018
From the top down:
100 rooms @ $70 + 10 rooms @ $22 = $ 7,220
300 rooms @ $65 + 30 rooms @ $19 = 20,070
20 rooms @ $50 + 2 rooms @ $15 = 1,030
420 (70% occupancy) 42 (10% double occupancy) $28,320
Average total revenue: $26,669
Average Total Revenue divided by Occupied Rooms (420)
equals the Ideal Average Room Rate ($63.50).
A.OCCUPANCY STATISTICS.
a. OCCUPANCY PERCENTAGE.
1. The Common Occupancy Percentage
¨ equals Number of Rooms Sold
¨ divided by Number of Rooms Available for Sale.
1. Out-of-Order Rooms - if taken from Rooms Available
¨ the percentage indicates sales clerk salesmanship.
1. Rooms Sold Count.
¨ This can be affected by which rooms are included.
¨ The counting scheme selected less important than consistency.
¨ Day Occupancy is generally omitted.
¨ Why not express them as a percentage?
¨ Should emergency sleeping accommodation be included?
¨ Should parlours be included?
¨ Dormitory style... count the number of beds sold?
¨ Permanent or Guaranteed reservations without occupancy.
¨ Do we count these people in the house count?
¨ Comp rooms, are these to be counted?
¨ This is especially in a Casino (many Comp rooms).
a. DOUBLE OCCUPANCY PERCENTAGE.
1. Actually a measure of multiple occupancy.
2. It is a percentage
¨ calculated as (Number of Guests less Number of Rooms Sold)
¨ all divided by the Number of Rooms Sold.
1. Sometimes it is a Guests Per Room ratio:
¨ calculated as Number of Guests
¨ divided by Number of Rooms Sold.
a. BED OCCUPANCY PERCENTAGE.
1. Common used in most of the world, very rarely found in United States.
2. Also known as Guest Occupancy or Sleeper Occupancy.
3. It is a percentage
¨ calculated as Number of Beds Sold
¨ including cots and hide-a-beds,
¨ Doubles, Queens & Kings are counted as 2 people
¨ unless sold as single when no other singles available,
¨ divided by Number of Beds Available for Sale.
1. 70 percent room occupancy usually means about 50 percent bed occupancy.
C. SALES RATIOS.
a. SALES PER OCCUPIED ROOM.
1. Also known as Average Room Rate or Average Daily Rate (ADR).
2. It is the rate earned per day per occupied room
¨ calculated as Room Income divided by Number of Rooms Sold.
a. SALES PER AVAILABLE ROOM.
1. Sales (Revenue) per Available Room.
¨ previously known as Average Rate per Available Room.
¨ calculated as Room Income
¨ divided by Number of Rooms Available for Sale.
1. Sales (Revenue) per Guest.
¨ previously known as Average Rate per Guest.
¨ calculated as Room Income
¨ divided by Number of Guests.
¨ this ratio is particularly important in American Plan hotels.
1. Total Sales (Revenue) per Available Room.
¨ calculated as Total Operating Income
¨ divided by Number of Rooms Available for Sale.
a. NUMBER OF TIMES THE AVERAGE RATE WAS EARNED.
¨ Total Income Before Fixed Charges
¨ also known as House Profit.
¨ Net Profit from all Operating Departments.
¨ divided by Number of Available Rooms,
¨ divided by Sales per Occupied Room.
a. POTENTIAL OPTIMUM REVENUE RATIO (POR).
1. Commonly used by financial institutions & appraisers.
2. Also known as the Rate Achievement Percentage.
¨ calculated as Room Income
¨ divided by Potential Optimum Income
¨ which is income from all rooms sold at full rate.
1. Average Optimum Daily Room Rate is
¨ calculated as Potential Optimum Income
¨ divided by Number of Rooms Available for Sale.
1. Ratio of Actual to Optimum Room Rates is
¨ calculated as Average Actual Daily Room Rate
¨ divided by Average Optimum Daily Room Rate.
a. AVERAGE LENGTH OF GUEST STAY.
¨ calculated as Number of Guests Nights
¨ divided as Number of Guest Arrivals.
