Market
brief for Tuesday, January 28, 2014
So, where exactly today is the travel,
hospitality, tourism, and hotel industries heading? Peabody
hotels is seeking expansion, a wonderful and enticing looking brand. Chicago Four Points by Sheraton is being
talked about as a Marriott AC brand possibility.
Occupancy,
average daily rate and revenue per available room are worth the look anew? Perhaps, new perspectives can dawn even at
the completly basic concepts level, though dawn they will only perhaps.
Occupancy is the eternal desire pf
management, because occupancy measures the attractiveness of the hotel property
and brings dollars into revenue.
The average daily rate is variable or
fixed depending upon the management team’s descision making process. Higher
prices per room when demand is peaking and lower prices during low seasons
might stmulate many as a business model.
Or, the rate per room is always at a fixed and known price every day of
the year no matter high or low season.
Hypothetical hybrid models always up for discussion and
exploration.
Revpar is a basic metric within the hotel
and hospitality industry meaning the revenue per available room. It is derived by musltiplying the average
daily rate by the occupancy value for that room.
The numerical values of these essential
terms in our industry guide management’sestimations of a particulat property
and shed light on needs that may become evident if the values are too low.
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