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Hotel Revenue Forecast Exercise

The document provides information about forecasting room revenue for a hotel over the course of a week. It includes the room availability, occupancy rates, estimated rooms sold, average daily rates (ADR), and total estimated revenue for each day of the week. It asks the reader to calculate estimated averages and determine which day performed better between Wednesday and Sunday based on occupancy rates and revenue.

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201 views2 pages

Hotel Revenue Forecast Exercise

The document provides information about forecasting room revenue for a hotel over the course of a week. It includes the room availability, occupancy rates, estimated rooms sold, average daily rates (ADR), and total estimated revenue for each day of the week. It asks the reader to calculate estimated averages and determine which day performed better between Wednesday and Sunday based on occupancy rates and revenue.

Uploaded by

LOVELY GRACE MADRIDEO
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

NAME: MARK ANTHONY BIBAÑO

COURSE: BSIHM (HACLO) 3Y1-2

WORKSHEET 1: FORECASTING ROOM REVENUE

Instructions:

This is your time to work and practice on your own.

Answer this in blank word document.

Save and submit your worksheet in PDF FORMAT with your name and solution

The price a hotel can obtain for its guest rooms is determined largely by demand. The ADR or average
daily rate for this hotel is Php9,200.00 for Monday through Thursday. The ADR increases over the
weekend, Friday, Saturday, and Sunday by 20%. You need to determine your daily revenue as well as the
total revenue for the week.

Monday Tuesday Wednesday Thursday Friday Saturday Sunday Estimated


Average
21-Dec 22-Dec 23-Dec 24-Dec 25-Dec 26-Dec 27-Dec
Room 550 550 540 570 570 570 570 560
Availability
Occupancy 40% 50% 65% 60% 80% 90% 50% 62%
Rate
Estimated 220 275 351 342 456 513 285 349
Rooms Sold
Estimated 9,200.00 9,200.00 9,200.00 9,200.00 11,040.00 11,040.00 11,040.00 9,988.57
ADR
Total
Revenue
for 1st
Week of
December
Daily Total 2,024,000 2,530,000 3,229,200 3,146,400 4,195,200 4,719,600 2,622,000 22,466,400
Revenue
SOLUTION: (18 points)

(For Estimated Average, Estimated Room Sold and Estimated ADR)

Estimated Average of Rooms Available = Total Numbers of Room available / 7 days

550+550+540+570+570 +570+570 = 3,920 / 7 = 560

Estimated Average of Occupancy Rate = Total Numbers of Occupancy Rate / 7 days

40%+50%+65%+60%+80%+90%+50% / 7 = 4.35% / 7 = 62.14%

Estimated Average of Estimated Rooms Sold = Total Numbers of Estimated Rooms Sold / 7 days

220+275+351+342+456+513+285 = 2,442 / 7 = 349

Estimated Average ADR = Total Estimated Average ADR / 7 days

9,200.00+9,200.00+9,200.00+9,200.00+11,040.00+11,040.00+11,040.00 = 69,920 / 7 = 9,988.57

Estimated Room Sold = Rooms Available * Occupancy Rate

Monday: 550 * 40% = 220

Tuesday: 550 * 50% = 275

Wednesday: 540 * 65% = 351

Thursday: 570 * 60% = 342

Friday: 570 * 80% = 456

Saturday: 570 * 90% = 513

Sunday: 570 * 50% = 285

QUESTION: (6 points)

Comparing Wednesday’s performance from Sunday’s performance, which is better? Why?

When comparing Wednesday's performance to Sunday's performance, Wednesday is better. The


estimated room occupancy on Wednesday (65%) is significantly higher than on Sunday (50%), indicating
that more rooms were sold on Wednesday. Additionally, the Average Daily Rate (ADR) on Wednesday is
the same as on Sunday (Php9,988.57), so the higher occupancy on Wednesday results in higher daily total
revenue. Therefore, Wednesday's performance is better due to higher room occupancy and revenue
compared to Sunday.

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