Equivalent Room Occupancy Formula

The equivalent occupancy formula can be used when management wants to know.

Equivalent room occupancy formula.

The number 36 comes from the notion that every person should be allotted a minimum space of 6 feet of length and width which means that the recommended space that one person should have is equal to 36 square feet. Multiply a hotel s average daily room rate by its occupancy rate and you ll get the revpar. In a 300 room hotel 70 occupancy equals 210 rooms occupied. Revenue per available room revpar is a strong performance index metric used in the hotel industry.

Call related activity covers talk time hold and after call work acw. Multiply that by 100 and you will get 21 000 as your total room revenue. Divide 21 000 by the total number of rooms available 300 and you ll have your 70 revpar. Divide the available floor space by 36 to get an approximation of the maximum occupancy of the room.

Occupancy is the percentage time that advisors take on call related activity compared to the logged in time. What other combinations of room rate and occupancy percentage provide equivalent net revenue. To calculate your property s annual revpar simply take your rooms available multiplied by 365 days in a year. If you measured the room in sections add up the square feet of each section.

In order to maximize their profit they need to sell the right product to the right customer at the right time for the. The marginal cost of providing a room is the cost the hotel incurs by selling that room for example cleaning and supplies. Similarly a 200 room hotel with guests in 150 rooms has a 75. For example if your room is 50 feet long and 40 feet wide the area is 2 000 square feet 50 x 40 2 000.

Yield management is the process of understanding anticipating and influencing consumer behavior in order to maximize yield or profits from a fixed perishable resource such as airline seats or hotel room reservations. The formula for occupancy percentage number of rooms occupied total number of rooms available for sale 100 there are generally two ways used to calculate the occupancy percentage in hotel one by the number of rooms occupied and another by the rooms sold rooms sold occupied rooms complimentary and house use. This cost would not be incurred if the room were. This square footage per person varies significantly depending on the type of building and can be found in section 1004 of the international fire code.

To estimate the occupancy of a space divide the square footage of the room by the square footage required per person.