Economical hotels in Chesapeake Va.|Different Types of Hotels|For Hotels: RevPar and ARR Explained|Hotels - Singapore... - 0 views
started by Carey Foley on 02 Mar 12
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Many stay in middle-of-the-road lodges. These places offer a lot more than the budget places to stay, but they don't come in close proximity to what the luxury lodges provide. You'll get some freebies there, but you won't get the pampering and the do-anything-for-you attitude that you'll get in the luxury hotels. That doesn't seem to be required, though, because these standard hotels are nevertheless very popular. It gives people the feeling likely staying in a pleasant hotel without requiring them to spend such an excessive amount of money. The fixtures in these hotels will be newer than the spending plan hotels, as will the linens. They will be nice places overall, but they won't have the spas and free deep massages and other treatments that many the luxury options furnish. For travellers on a good budget, these hotels may be too costly, as well.
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The amount of hoteliers understand and employ RevPar and ARR? What do they mean and just how can they benefit a hotel in decision making with regard to future revenue growth together with profitability?
ARR = Standard Room Rate
RevPar = Income Per Available Room
Let us take an example of a 50 bedroom hotel which has sold 30 bedrooms at 100 per room, and has now 20 rooms unsold.
Your ARR is 100 x 30 = 3000 broken down by 30 = 100 for each room
ARR just takes an average of the rooms which have been completely sold. RevPar takes an average of the rooms sold and the rooms unsold.
In buying reliable measure of what sort of hotel is performing on rates and revenue, ARR yields an inflated impression with the real figures, while RevPar provides true picture of profit achieved from accommodation available ie. over-all capacity.
So how do hotels use this to their advantage? There several ways at looking at revenue generation eg.
(1) lower the rate and sell 50 rooms at 80 = 4000 using a RevPar of 80
(2) sell 30 rooms at 100 per room, in that case lower the rate distribute more rooms increasing the overall turnover and RevPar
Your choice for hoteliers is how to use demand in their own area, to help flex rates, to match demand and rates to optimise occupancy and income, and to be looking to achieve the best RevPar they are able to.
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Rest is what every traveler needs after having a very long flight. So it is just fitting that magnificent rest is what you'll get with the available hotels in the Singapore airport.
There are actually two hotels near Changi airport in Singapore plus they serve different needs associated with different travelers.
Ambassador Transit Places to stay
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