Chapter 2

Competencies
Analyze Average Daily Rate (ADR), Occupancy (OCC), and Revenue per Available Room (RevPAR).
Examine Competitive Set, Market share, and Index
Measure Yield indices: Potential Average Double Rate and Potential Average Double and Single Rate.
Chapter 2 Outlines

1. ADR and RevPAR in Y axis and OCC in X axis.

2. Revenue as two integrals: ADR vs. Demand and RevPAR vs. Supply

3. Yield as an integral of ADR and OCC

This chapter provides an in-depth analysis of six key variables essential to revenue management: Demand, Supply, Revenue, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Occupancy. These variables form the backbone of effective pricing strategies and financial performance in the hospitality industry. The chapter also explores the dual challenge of maximizing revenue while navigating various constraints that impact these variables.