HOSP 320 Homework Assignment Week 6 .
1. How are RevPar, ADR and Occupancy are calculated and describe in detail what each tells the general manager about the success of the sales and front office department in effectively managing inventory?
2. What are allocation controls? What are availability controls? What are the benefits and disadvantages of each? (Note: disregard the side labels in the book, they are reversed. Use the actual written paragraphs for information) (hint: chart format may be easier to use)
- Describe and discuss the difference in a management company and a franchise company. Discuss the advantages and disadvantages of each. (hint: chart format may be easier to use) Discussions
o Hotel management companies (graded)
o Franchising (graded)
Average Daily Rate, abbreviated as ADR, is calculated by dividing Room Avenue by rooms sold. On the other occupancy is define by Stutts and Wortman (2005) is the percentage of existing rooms that were sold in the course of certain period of time. Specifically, occupancy