If the average room rate is $50 when 500 rooms are sold, and if the multiple occupancy is 60% and double rooms are priced $17 higher than single rooms, compute the double room rate

Question

BlackTom AI · Accepted Answer

To solve this, I’ll break down the information and set up the relationship between single and double room prices.

- First, total rooms sold = 500. The multiple occupancy (double rooms) is 60%, so number of doubles = 0.60 × 500 = 300. Singles = 500 − 300 = 200.

- Let the single room price be s. Then the double room price is d = s + 17 (since doubles are $17 higher).

- Total revenue from 500 rooms at the average rate of $50 is 500 × 50 = 25,000.

- The revenue from singles is 200 × s, and from doubles is 300 × d = 300 × (s + 17) = 300s + 5100. Therefore, total revenue is 200s + 300s + 5100 = 500s + 5100.

- Set the total revenue equal to 25,000: 500s + 5100 = 25,000. Subtract 5100 from both sides: 500s = 19,900. Divide by 500: s = 19,900 ÷ 500 = 39.8.

- Now compute the double room rate: d = s + 17 = 39.8 + 17 = 56.8.

- Therefore, the double room rate is 56.8, which can be written as 56.80 for currency formatting.

254_AC360 Financial & Managerial Accounting

If the average room rate is $50 when 500 rooms are sold, and if the multiple occupancy is 60% and double rooms are priced $17 higher than single rooms, compute the double room rate

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254_AC360 Financial & Managerial Accounting

If the average room rate is $50 when 500 rooms are sold, and if the multiple occupancy is 60% and double rooms are priced $17 higher than single rooms, compute the double room rate

查看解析

登录即可查看完整答案

类似问题

Part 1What is an alternative name for revenue​ management?Part 2 A. yield management B. cash flow management C. price and demand management D. income management

Which of the following answers is not a strategic revenue management topic?

Which of the following is a necessary room revenue variable to establish the net room revenue differential?

Which of the following is a step in the displacement analysis process?

A displacement analysis should be conducted:

Which stay control measure is seldom the best option for revenue maximization?

更多留学生实用工具

希望你的学习变得更简单

Part 1What is an alternative name for revenue management?Part 2 A. yield management B. cash flow management C. price and demand management D. income management