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Percentage of 6o-!ho
This data indicates the proportion of reserved rooms that the e"pected guest did not arrive to occupy on the e"pected arrival date. This ratio helps the Front Office Manager to decide hen to sell rooms to al'-ins or the amount of overboo'ing. 6o !ho $ 9 No. of No-Show Rooms 6o. of Rooms Reservations X 100
7al' :n $9 No. of Walk In Rooms X 100 No. of Room Arrivals ;fora period e.g. day# ee'# month# year< Overstay $ 9 No. of Overstay Rooms X 100 No. of Ex e!te" #he!ko$ts ;fora period e.g. day# ee'# month# year<
7here= 6o. of E"pected (hec'outs 9 Actual (hec'outs % &n"er stay - Overstay
8nder stay $ 9 No. of &n"er stay Rooms X 100 No. of Ex e!te" #he!ko$ts ;fora period e.g. day# ee'# month# year<
7here= 6o. of E"pected (hec'outs 9 Actual (hec'outs > 8nder stay - Overstay
Forecast Formula Total 6umber of Cuest Rooms 'less( N$m)er of O$t-of-Or"er Rooms 'less( N$m)er of Stay over Rooms 'less( N$m)er of Room Reservations 'a""( N$m)er of Room Reservations X No Show * 'a""( N$m)er of &n"er stay Rooms 'less( N$m)er of Overstay Rooms 'e+$al to( N$m)er of Rooms Availa)le for Sale
Indian Hotel
Ten Day Occupancy Forecast Weekendinq Date Prepared To be submitted to all Department H #$ Date % Day '$ (stimated Departure )$ Fteservation *rrivals + ,roups -$ Reservation *rrivals+ Individuals .$ Future Reservations /a!ter t"e !orecast is complete0 1$ (2pected Walk+ins /based on past ' eeks0 3$ Total *rrivals 4$ Stayovers 5$ Total Forecasted Ftooms #6$ Occupancy &ultiplier /based on no o! 7uests per occupied room !or avera7e o! t"e same day !or last ) eeks0 ##$ Forecasted no o! 7uests #'$ *ctual Rooms Occupied #)$ Forecasted 8ariance /di!!erence bet een actual % !orecasted occupancy0 #-$ (2planation /to be completed by FO & Ona7er % submitted to ,&0 Prepared By eads at least one eek be!ore t"e !irst d ay listed on !orecast Fri Sat Sun &on Tue Wed T"u Fri Sat Sun
*PPRO8(D
Date:
A three day forecast is an updated report that sho s a more current estimate of room availability. :t details any significant changes from the ten-day forecast. The three-day forecast is intended to guide management in finetuning staff schedules and ad@usting room availability information.
Indian Hotel
Three Day Forecast Form
Toni7"t
Tomorro
)rd =i7"t
+ (2pected Departures + (arly Departures > ?ne2pected Stay+overs > ?noccupied Rooms @ Rooms *vailable !or Sale > (2pected *rrivals > Walk+Ins + =o S"o s @ Occupied Rooms @ Occupancy A @ (2pected House <ount
?istribution= Ceneral Manager D Front ?es' D %ouse'eeping I F% B &ana7er ; (2ecutive <"e! I *ccounts I Sales I Banquets I Security
Ma'e counts of the rac' and reservations ;usually t ice in a day<. (hec' room rac' against the folio buc'et to find sleepers and s'ippers. (hec' %ouse'eeping reports against the room rac' to find sleepers and s'ippers. (hec' for rooms that are due out# but still have balances on theirfolios# especially here credit cards are the indicated source of payment. (hec' reservations forany duplication. (all the reservation system to ma'e sure all cancellations ere transmitted. Ma'e sure that the guest is not already registered. (all the local airport and Rail ay !tation for a report on cancellation. (hec' the eather reports for cities from hich a numberof guests are e"pected. (hec' ith other hotels for duplicate reservations ;especially for (onvention and (onference boo'ings<.
A A A A A
(hec' arrival dates on all reservation forms to be sure none ere misfiled. (hec' the room cancellation list. Afterthe cut-off time# pull any reservations that ere not guaranteed. :f any rooms are out of order# chec' to see if they can be made up. At the end of the shift# log all pertinent information for the incoming staff. Cood communication is essential.
Occupancy Ratios
:t measures the success of the Front Office in selling the hotels primary products i.e. guest rooms. The follo ing data must be collected to calculate basic occupancy ratios 6umber of rooms available for sale 6umber of rooms sold 6umber of guests 6umber of guests per room 6et rooms revenue Cenerally all the above said data are available in the ?aily Operations Report. Occupancy Percentage# Average ?aily Rate ;ARR<# Average Rate per Cuest# Revenue per Available Room# and Multiple ;?ouble< Occupancy Ratios can be obtained from these data. Occupancy Percentage and A?R ;ARR< also appear on the ?aily Operations Report. The 6ight Auditor computes the Occupancy Ratios# hile Front Office Manager analyFes the information to identify trends# patterns or problems. :t should be considered that a particular condition may produce different effects. For e"ample# if double occupancy increases# the ARR also increases as the tariff for double occupancy is higher than single occupancy and at the same time the Average Rate per Cuest decreases. The follo ing data of Rooms ?ivision is needed to calculate occupancy ratios.
Planning and Evaluating.................................1 Forecasting Room Availability.....................1 Percentage of No-Show........................... Sam!le Forecast Forms........................... "ndian #otel..........................................$ %aily &hec'list for Accurate Room &ount...........( Room &ount &onsiderate............................) Evaluating Front *ffice *!erations................) %aily *!erations Re!ort.........................) *ccu!ancy Ratios................................+ Rooms Revenue Analysis.........................., #otel "ncome Statement.........................., "ndian #otel.......................................1Summary Statement of "ncome For the year ended 1Rooms Revenue Rs. +-4,55 Occupancy Percentage Most commonly used operating ratio in the Front Office. :t indicates the proportion of rooms eithersold or occupied to numberof rooms available during a specified period of time. :t is important to note that# some hotels use the number of rooms sold to calculate# hile others use the numberof rooms occupied# including complimentary rooms or OOO rooms in calculation# hich alter some vital operating ratios# e.g. RevPAR. 7hen OOO rooms are included in the number of rooms available then the front Office Managers are forced to rectify I repair the rooms and sell it as early as possible. (onversely# not including OOO rooms may allo managers to artificially increase the calculated Occupancy Percentage simply by improperly classifying unsold rooms as out-of-order. !ome hotels do not include OOO as they are not actually sellable. Also to the e"tent that the occupancy percentage is used to evaluate the performance of Front Office staff having no control over out-of-order rooms. Regardless of the approach chosen# it should be used consistently.
Multiple Occupancy Ratio Also called Double Occupancy Ratio is mainly used to forecast Food H 1everage revenue# to indicate clean linen re*uirements# and to analyFe Average ?aily Room Rate. Multiple Occupancy can be calculated
by determining a multiple occupancy percentage or by determining the average number of guests per room sold or occupied ;also called the Occupancy &ultiplier or the &ultiple Occupancy Factor0$
Average ?aily Rate ;A?R< Also called Average Room Rate ;ARR<. Most Front Office Managers calculate an average daily rate even though the room rates vary significantly ithin a property.
some hotels include complimentary rooms in the denominator to sho the true effect of complimentary rooms on the average daily rate. This is sometimes called *vera7e House Rate$ Revenue Per Available Room ;RevPAR< :n this the total revenue generated is divided by the number of available rooms. :t measures# the revenue generating
capability of the hotel. %otels ith strong food# beverage# ban*uets and recreational facilities have RevPAR ell above the A?R
Another approach of RevPAR can be of calculating total revenue earned by the hotel including F H 1 outlets# 1an*uets# %ealth (lub and others and divided by number of available rooms# e.g.
Rate Per Cuest %otels# in particular# are often interested in the average room rate perguest ;ARC<. This rate normally based on every guest in the hotel# children.
The net income generated by rooms division is calculated by deducting payroll and other related e"penses from the amount of revenue generated by rooms division over a specific period. Rooms ?ivision is considered the largest earning revenue centre ithin the hotel.
:ndian %otel
!ummary !tatement of :ncome For the year ended.................................
OPERAT%J ?EPAR:%D1JT! Rooms Food Bevera7e Telecommunication Rentals H Other :ncome Total ?ndistributed Operatin7 (2penses *dministrative % ,eneral &arketin7 Property Operations and Maintenance 8tility (osts her #B 4'B ##B614 16B .)B34')B )1B5#) 1B -#B')' .B 1-B'31 '#B 55B#3# )'B 6.B#-5 -B 41B33-!chedules#4B .)B##. .B 6#B451B #3B15# 1 5-B'1) :ncome #-C '6B-1# .B 61B)4' 'B )1B)-5 .#B5'3 #B ).B 4.B-.4 #-B 5.B##1 5B 51B655 /+0 1B4.'
Operated Departments
'B34B63B'3)
)#B43B4)5 - .3B36B'#4
. /
''B#.B##5 #B11B)-B653
5B 5-B1)4 #1B 33B.-) #'B 11B44. #1B #-B444 -C 5#B1-6 ##B 6.B)-3 #1B )4B55) #1B )4B55)
0 2 )
#1B--B1#.
:ncome After 8ndistributed Operating E"penses Rent# Property Ta"es H :nsurance :ncome 1efore :nterest# ?epreciation H Amortisation and :ncome Ta" :nterest E"pense :ncome 1efore ?epreciation# H Amortisation and :ncome Ta" ?epreciation H Amortisation Cain on !ale of Property :ncome 1efore :ncome Ta" :ncome Ta"
'B34B63B'3)
6et Revenue ;Rs.<
)#B43B4)5 5 3-B#-B4))
(ost of !ales ;Rs.< E"penses ;Rs.<
6et :ncome
Pa yro ll H Re lat ed Ot
30B 3-B')5 +-B 4-B6-# 2,B 56B#54 +0B .3B'6) EEEEEEEEE-B3'' /0B )3B3#3 +.B 65B-)6
.,#,3#,32
:n the :ncome !tatement# !chedule refers to departmental income statement# e.g. !chedule + is the income statement of Rooms ?ivision
Fi7ures
Salaries and Wa7es (mployees Bene!its <ommission <ontract <leanin7 ,uest Transportation Daundry Dinen Operatin7 Supplies Reservation (2penses /!ees !or <RS0 Ot"er Operatin7 (2penses
Sources
*ttendance <ard ; Payroll re!erred Payroll Records Travel *7ency Billin7 Supplier Invoice Invoice Housekeepin7 Supplier Invoice Supplier Invoice Reservation System Invoice Supplier Invoice /equipment rental etc$0
7ith the helpofRoom ?ivision :ncome !tatement# the Front Office Manager determines the action plan in terms of revenue and services.
Indian Hotel
Rooms Division Statement o! Income For t"e year ended$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ Revenue *llo ance =et Revenue (2penses Salaries % Wa7es (mployees Bene!its ,otal -ayroll . Relate" Ex enses Ot"er (2penses <able ; Satellite Television <ommissions <omplementary ,uest Services <ontract Services ,uest Relocation ,uest Transportation Daundry % Dry <leanin7 Dinen Operatin7 Supplies Reservations Telecommunications Trainin7 ?ni!orms Ot"er ,otal Other Ex enses ,otal Ex enses Departmental Income /Doss0 4B4.B5#5 'B#'B-110/01/212 '6B#66 11B33. 'B-'6 )6B43#B'-# -4B.1. -'B-5. #'B#-6 #B''B166 -6B564 #'B--' 3B#'' 16B36. .B#66 -B3)B-43 13/41/150 Rs$ -.B'4B-41 <urrent Period Rs$ 1#B'-B55# .-B1). 16B36B).1
Indian Hotel
Bud7et Report + Rooms Division For EanuaryB '661
*ctual Bud7et Reven$e Room Sales *llo ances =et Revenue Ex enses Salaries % Wa7es (mployee Bene!its Total Payroll % Related (2penses Ot"er (2penses <ommissions <ontract Services ,uest Transportation Daundry % Dry <leanin7 Dinen Operatin7 Supplies Reservations ?ni!orms Ot"er Operatin7 (2penses Total Ot"er (2penses ,otal Ex enses 7e artmental In!ome
8ariances % Rs$
Rs$ #.B1'B-66 -B)36 #.B.4B6)6 'B64B'16 -6B#.6 'B-4B-#6 -B)36 5B'#6 #3B.66 #'B#46 #5B616 #5B)36 #3B)-6 )B3-6 .B#.6 #B63B5'6 )B.1/220 Rs. 16/01/500
Rs$ #-B.6B466 )B666 #-B-3B466 #B44B'#6 .3B5#6 'B-1B#'6 3B.'6 4B3)6 #'B666 5B3.6 #4B3.6 #)B-46 '6B#'6 'B5'6 1B3'6 55B556 2/40/110 Rs. 11/01/080
Rs$ #B##B166 /#B)360 #B#6B')6 /'6B6.60 #3B316 /'B'560 )B#.6 /-460 /.B.660 /'B-)60 /)#60 /.B4560 'B346 /4'60 #B.36 /3B5)60
'10/660(
3$15 /-.$130 3$1# /#6$1.0 )6$13 /6$5)0 -#$45 /.$.60 /-.$4)0 /'-$5'0 /#$1.0 /-)$150 #)$4' /'4$640 ')$)1 /3$5)0 /'$5.0 5$64
Rs. 1/00/010
?n!avourable 8ariance
:&7;E, EX#EE7S A#,&A9 A#,&A9 EX#EE7S :&7;E,