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Author Question: As an hotelier and given the following occupancy and ADR scenarios, which one makes the most sense ... (Read 155 times)

mrsjacobs44

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Question 1

Why was Amtrak formed?
 
  What will be an ideal response?

Question 2

As an hotelier and given the following occupancy and ADR scenarios, which one makes the most sense from an operational and financial standpoint?
 
  What will be an ideal response?



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Andromeda18

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Answer 1

Amtrak was formed in 1970 when several railroads carrying passengers neglected passengers in favor of freight and service declined sharply.

Answer 2

Scenario 1 Scenario 2
Occupancy rate 70 Occupancy rate 50
ADR 100 ADR  150
Scenario 1 .70 x 100 = 70 REVPAR Scenario 2 .50 x 150 = 75 REVPAR

From an operational and financial standpoint, Scenario 2 is the most beneficial. At an occupancy rate of 50 and rate of 150 not only does the hotel have greater revenue and REVPAR but also there are less operational costs and physical wear on the building facilities and amenities.





 

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