excel solver examples staffing revenue expenses

EXCEL SOLVER EXAMPLES STAFFING REVENUE EXPENSES MANUAL

You can be continually aware of how your hotel is positioned.

It can show you the variance between you and your competitors – if your index is lower can you make an investment, in technology for example, to help close the gap?.

It will allow you to see how well your strategy is working relative to competitors.

There are a few reasons you might want to calculate your RevPAR Index: This means you’ll be easily getting more than your expected market share. So, if your hotel’s RevPAR is $70 and the group’s is $50 your RevPAR index will be 140.

To calculate the index you need to divide your RevPAR with the aggregated group of hotels’ RevPAR and multiply it by 100. Naturally an RGI of greater than 100 represents more than the expected market share, and less than 100 represents you are not getting as much of the share as you should. This indicates your hotel is getting the expected, or fair, market share amongst the particular group of hotels. The RevPAR Index, or revenue generating index (RGI) should be 100. RevPAR is the straightforward calculation to understand how well you are selling and profiting from your rooms, The RevPAR Index measures the performance of your RevPAR relative to a grouping of other hotels, such as a competitive set, market, or sub-market. It’s important to understand that RevPAR and RevPAR Index are not the same thing. If you can’t solve your occupancy problem, then perhaps you can make more money on the rooms you are selling, even without raising rates – since increasing rates could be counterproductive. This is why RevPAR is important to track. You might have 100 rooms at a rate of $100 per night, but if your occupancy is only 50% then your revenue figure won’t be anywhere near what your target is. In fact, you first need to calculate your ADR before you begin calculating RevPAR.ĪDR will simply tell you how much revenue each sold room is selling for on average, while RevPAR will tell you how much revenue you’re bringing in for all your rooms. While they both relate to room revenue they’re very different metrics. Note that you’ll also need to calculate your ADR for the first example. That’s a lot of room nights to yield and optimise! So with the 300 room property above, the annual room nights available is 109,500. To calculate your property’s annual RevPAR, simply take your rooms available multiplied by 365 days in a year. Multiply that by 100 and you will get $21,000 as your total room revenue.ĭivide $21,000 by the total number of rooms available (300) and you’ll have your $70 RevPAR. In a 300 room hotel, 70% occupancy equals 210 rooms occupied. The other way to calculate it is by dividing the total number of rooms available in your hotel with the total revenue from the night.

If your hotel is occupied at 70% with an ADR of $100, your RevPAR will be $70. Simply multiply your average daily rate (ADR) by your occupancy rate. If the RevPAR of your property is increasing, it must mean your average room rate or occupancy rate is increasing – or both!Īlways use RevPAR in combination with other key performance metrics to optimise your hotel’s performance. You should use RevPAR to understand the best way to maximise the revenue generated per room. It provides a glimpse into the number of rooms that are being sold at a hotel and how much revenue is being generated from those bookings. RevPAR stands for revenue per available room, and is one of the most common and important hotel metrics. Putting your hotel in front of 600,000+ travel agents. Specialists in providing advice and services to the hotel industry. Unprecedented reach to global and regional markets with real-time online distribution.Ĭonnecting you to apps that make your everyday better.įind a PMS to help you run your hotel more effectively.

EXCEL SOLVER EXAMPLES STAFFING REVENUE EXPENSES MANUAL

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Excel solver examples staffing revenue expenses