Revenue Management
Value
Oragnizational profit(tangible benefit)=Selling price-Costs
Personal Profit=Perceived value(intangible benefit)-Selling Price
Quality, Service, Price
Intangibilitiy, Inconsistency, Inseparability, and Inventory
Strategic Pricing
Value=Perceived Benefit-Price
4 Ps= Product, promotion, place, and price
Supply, Demand, Equilibrium price, break-even point
Fixed, variable and mixed costs
ADR=Total room revenue/total rooms sold
Occupancy %= Total rooms sold/total rooms available for sale
RevPAR=ADRxOccupancy%
RevPOR=Total Revue/Total Occupied Rooms
Accountant's Profit Formula
Profit=Sales-Costs
Profit= The Reward for Risk
ROI= Return on Investment
ROI= Investment Return/Original Investment
Revenue-Expense=Profit
