B Cost and revenue per room

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Assignments

Name of assignment

Cost and revenue per room.

Situation

Until now, the hotel has mainly looked at the total of the revenues and the total costs n the operating review. There is actually little insight into the exact distribution of the costs, the costs per room, cost per room occupied, etc. The [[RevPAR] and RevPOR did provide an initial impetus.

Goal

Now that there is a new situation and a new strategy, Jill Jandal also wants to have a much better grip on the figures. The aim is to gain insight into the exact costs and revenues per room and per occupied room in recent years. This should become the basis for determining the selling price. this is now mainly determined on the basis of sentiment. Because turnover is also achieved in banqueting and via food and beverage, some assumptions have to be made.

Task, deliverable

Make an analysis that gives Jill Jandal more insight in the cost and profit per room. Do so using the data from the past year:

• Divide the fixed and variable costs over the three turnover groups. Do this on the basis of substantiated assumptions (link to your strategy).
• Subsequently make a calculation of the fixed and variable costs per available room and per occupied room.
• Make a calculation of the RevPAR and RevPOR.
• Look for benchmarks from hospitality companies of similar size. What is your conclusion?

Assessed elements

• Is he distributions of the costs, linked to the strategy, done in an acceptable and thought over manner?
• Are the calculations done well?
• In the comparison with the benchmarks done well?
• Are all the sources accounted for?

Additional information

• Revenue per room
• Costs
• Revenues
• RevPAR
• RevPOR

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