Room Rate Definition

For example if 45 out of 50 rooms are occupied you can charge more for the remaining 5 rooms.

Room rate definition.

Room rate the rate charged daily for a hotel room charge per unit rate amount of a charge or payment relative to some basis. It is a hotel kpiwhich measures the average rate per available room similarly to adr. It is sometimes quoted to potential customers over the phone and. Additionally at low demand seasons when your occupancy is low you can charge less for your rooms to attract bookings.

The average daily rate adr measures the average rental revenue earned for an occupied room per day. The operating performance of a hotel or other lodging business can be determined by using the. Information and translations of room rate in the most comprehensive dictionary definitions resource on the web. This is generally printed on the tariff sheet of the hotel and these details are also submitted to the local government authorities for hotel licensing and in some countries for gov.

You must increase your room rates when demand exceeds supply. Revpar is also calculated by dividing a hotel s total room revenue by the total number of. If you book a hotel room for a vacation or business travel you will likely notice that the posted room rates are based on double occupancy. Meaning of room rate.

Information and translations of room rate in the most comprehensive dictionary definitions resource on the web. Standard room rates and rate codes used in the hospitality industry. This approach will increase your adr and revpar. This means that the hotel s rate calculation factors in.

Meaning of room rate. The measurement is calculated by multiplying a hotel s average daily room rate adr by its occupancy rate. 2003 2012 princeton university farlex inc. Is the standard rate or published tariff defined by the hotel management for a particular room category type.