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25 Top Management Tools in Hospitality

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Submitted By eskimopie23
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Daily

1. ADR
The Average Daily Rate is a method to calculate the average amount paid per room per night. For example, when a hotel earned €100,000 in a year with 500 rooms available, its ADR would be €100,000/500 = €200.
ADR alone is not specific enough to function as a key indicator of a hotel’s performance. A hotel may have a high ADR but occupancy can still be low, meaning that the hotel is loosing out on potential profits. The importance here is that ADR is valuable for calculating RevPar.
Total Room Revenue
Number of rooms sold = €

http://www.wikinvest.com/metric/Average_Daily_Rate_-_Hotels_%28ADR%29

2. RevPAR
Revenue per available room, referred to as RevPAR, is an indicator used to measure the revenue gained by selling hotel rooms. This indicator is one of the most important ratios of all in the process of RM, as it gives a clear picture on revenue per room and how certain tactics and decisions turn out to either have a positive or negative effect. RevPar is calculated by multiplying occupancy with ADR. This also means, that although RevPar of one hotel might be higher than that of the competitor, this hotel can still have a lower bottom line because of revenue from other departments or a bigger amount of rooms
Total Room Revenue
Number of available rooms = €

3. Bed occupancy
The occupancy percentage for a hotel property is computed daily and can be used to predict demand, however without giving too much detail. Calculating single or double occupancy percentages can give a little more insight in the expected average amount of guests and combined with demand and rate history can help a hotel to anticipate on this. http://www.hotelmarketingcoach.com/Revenue%20Management.htm http://www.hotelmule.com/management/html/88/n-588.html Weekly
4. GOPPAR
Gross operating profit per available room, also referred to as

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