Cost price: Difference between revisions
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Data on the [[occupancy rate]] of the rooms, as well as the variable and fixed [[costs]] per room are available on the history. So you could calculate the cost price per room (type) and per season. So, by doing so you also know what the minimum price has to be, to cover these costs. <br> | Data on the [[occupancy rate]] of the rooms, as well as the variable and fixed [[costs]] per room are available on the history. So you could calculate the cost price per room (type) and per season. So, by doing so you also know what the minimum price has to be, to cover these costs. <br> | ||
In hotel industry a famous ratio to work with would be the [[RevPAR|Revenu per available room]]. | In hotel industry a famous ratio to work with would be the [[RevPAR|Revenu per available room]]. | ||
== Example of cost price per room == | |||
So, to an indication of the average cost price per occupied room would be of € 107.10 (check [[Revenue per room]]) - profit of € 23.97 = € 83.13 per occupied room. <br> | |||
If you make additional costs let's say in a total of € 400,000 (in your [[Decisions]] and, let's pretend you have the same occupancy rate, your average cost price per occupied room will go up with € 400,000 ./. 18,200 = € 21.97. So the average cost price now would be € 21.97 + € 83.13 = € 105.10 per occupied room. <br> | |||
Just to 'compensate' for the additional costs, and keep all the rest the same, and let's pretend the same occupancy rate, your sales prices must (on an average) go up with € 21.97 | |||
== Sales price == | |||
If you make more costs, see the calculation above, you nee to 'cover for that' by: | |||
* higher sales prices | |||
* or more sales, so a higher [[occupancy rate]] | |||
* or less costs on other cost types, which is hardly impossible to realise. | |||
<br><hr> | <br><hr> | ||
Revision as of 12:59, 28 May 2021
Cost price per room
Data on the occupancy rate of the rooms, as well as the variable and fixed costs per room are available on the history. So you could calculate the cost price per room (type) and per season. So, by doing so you also know what the minimum price has to be, to cover these costs.
In hotel industry a famous ratio to work with would be the Revenu per available room.
Example of cost price per room
So, to an indication of the average cost price per occupied room would be of € 107.10 (check Revenue per room) - profit of € 23.97 = € 83.13 per occupied room.
If you make additional costs let's say in a total of € 400,000 (in your Decisions and, let's pretend you have the same occupancy rate, your average cost price per occupied room will go up with € 400,000 ./. 18,200 = € 21.97. So the average cost price now would be € 21.97 + € 83.13 = € 105.10 per occupied room.
Just to 'compensate' for the additional costs, and keep all the rest the same, and let's pretend the same occupancy rate, your sales prices must (on an average) go up with € 21.97
Sales price
If you make more costs, see the calculation above, you nee to 'cover for that' by:
- higher sales prices
- or more sales, so a higher occupancy rate
- or less costs on other cost types, which is hardly impossible to realise.
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