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Adjusted RevPAR
Adjusted RevPAR (or ARPAR, adjusted revenue per available room), is a performance metric used in the hospitality industry. It is calculated by dividing the variable net revenues of a property by the total available rooms (see more formulas below). The difference between ARPAR and other metrics (RevPAR, TRevPAR, GOPPAR) is that it accounts for variable costs and additional revenues. Calculations Various formulas can be used to calculate ARPAR * (Room Revenue + Other Revenues – VarCPOR х Number of occupied rooms) / Total Number of rooms available for sale * (Room Revenue/Number of occupied rooms + Other Revenues/Number of occupied rooms – VarCPOR) x Occupancy * Room Revenue/Number of occupied rooms + Other Revenues/Number of occupied rooms – VarCPOR) х Number of occupied rooms/ (Number of rooms at the hotel x Number of days in the period) where VarCPOR is Variable Costs per Occupied Room The most commonly used formula is: *ARPAR = (ADR – Var costs per occ room + Ad ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
RevPAR
RevPAR, or revenue per available room, is a performance metric in the hotel industry that is calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured.Mauri, A. G. (2012), ''Hotel Revenue Management: Principles and Practices'', Pearson, , pp. 27-38. However, if the calculation uses total hotel revenue instead of guestroom revenue it equals TRevPAR (Total Revenue Per Available Room). TRevPAR is another closely related performance metric in the hotel industry. Since RevPAR is only a measurement for a point in time (say a day, or month or year) it is most often compared to the same time frame. It is often used in comparison to competitors within a custom defined market, trading area, or advertising region or a self-selected competitive set as defined by the hotel's owner or manager, which is referred to as RevPAR Index or RGI (Revenue Generating Index). Also, comparisons are usually best considered between hotels o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
TRevPAR
TRevPAR, or total revenue per available room, is a performance metric in the hotel industry. TRevPAR is calculated by dividing the total net revenues of a property by the total available rooms. TRevPAR is the preferred metric for accountants and hotel owners because it effectively determines the overall financial performance of a property, while RevPAR only takes into account revenue from rooms. TRevPAR is useful for hotels where rooms are not necessarily the largest component of the business. Outlets such as banquet halls also provide a source of revenue for these hotels. Calculation :TRevPAR = TotalRevenue /RoomsAvailable \, * ''TRevPAR is total net revenue per available room'' * ''Total Revenue'' is the net revenue generated by the hotel * ''Rooms Available'' is the number of rooms available for sale in the time period. See also * RevPAR * GOPPAR * Adjusted RevPAR References {{reflist Pricing Business terms Revenue Hospitality management ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
GOPPAR
GOPPAR is the abbreviation for gross operating profit per available room, a key performance indicator for the hotel industry. It gives greater insight in the actual performance of a hotel than the most commonly used RevPAR as it not only considers revenues generated, but also factors in operational costs related with such revenues. GOPPAR is the total revenue of the hotel less expenses incurred earning that revenue, divided by the available rooms. GOPPAR does not take into consideration the revenue mix of the hotel, so while it does not allow an accurate evaluation of the room revenue generated it demonstrates the profitability and value of the property as a whole. Calculation :GOPPAR = Gross Operating Profit/Rooms Available \, * ''GOPPAR'' is the gross operating profit per available room * '' Gross Operating Profit'' is the net revenue from the hotel after expenses * ''Rooms Available'' are the rooms available for sale during the time period See also * RevPAR * TRevPAR TRevPAR, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Supply Chain Management
In commerce, supply chain management (SCM) is the management of the flow of goods and services including all processes that transform raw materials into final products between businesses and locations. This can include the movement and storage of raw materials, work-in-process inventory, finished goods, and end to end order fulfilment from the point of origin to the point of consumption. Interconnected, interrelated or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain. Supply-chain management has been defined as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronising supply with demand and measuring performance globally". SCM practice draws heavily on industrial engineering, systems engineering, operations management, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Pricing
Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and quality of product. Pricing is a fundamental aspect of product management and is one of the four Ps of the marketing mix, the other three aspects being product, promotion, and place. Price is the only revenue generating element amongst the four Ps, the rest being cost centers. However, the other Ps of marketing will contribute to decreasing price elasticity and so enable price increases to drive greater revenue and profits. Pricing can be a manual or automatic process of applying prices to purchase and sales orders, based on factors such as: a fixed amount, quantity break, promotion or sales campaign, specific vendor quote, price pre ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Business Terms
Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services). It is also "any activity or enterprise entered into for profit." Having a business name does not separate the business entity from the owner, which means that the owner of the business is responsible and liable for debts incurred by the business. If the business acquires debts, the creditors can go after the owner's personal possessions. A business structure does not allow for corporate tax rates. The proprietor is personally taxed on all income from the business. The term is also often used colloquially (but not by lawyers or by public officials) to refer to a company, such as a corporation or cooperative. Corporations, in contrast with sole proprietors and partnerships, are a separate legal entity and provide limited liability for their owners/members, as well as being subject to corporate tax rates. A corporation is more complica ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Microeconomics
Microeconomics is a branch of mainstream economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. Microeconomics focuses on the study of individual markets, sectors, or industries as opposed to the national economy as whole, which is studied in macroeconomics. One goal of microeconomics is to analyze the market mechanisms that establish relative prices among goods and services and allocate limited resources among alternative uses. Microeconomics shows conditions under which free markets lead to desirable allocations. It also analyzes market failure, where markets fail to produce efficient results. While microeconomics focuses on firms and individuals, macroeconomics focuses on the sum total of economic activity, dealing with the issues of growth, inflation, and unemployment and with national policies relating to these issues. Microeconomics also d ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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