HTM 4250 Lecture Notes - Lecture 3: Cash Flow, Demand Generation, Revpar

• School: University of Guelph
• Department: Hospitality and Tourism Management
• Course: HTM 4250
• Professor: Holmes

Document Summary

Demand (customers): the number of potential buyers with the interest and ability to purchase the products sold by a business at the specific price offered. Managing cash flow to forecast accurately, rms use three types of data: Data contained in a trailing period are often used in calculating a rolling average: rolling average: average calculated by using historical data generated during a changing time period. Shorter time periods reflect changing circumstances more effectively. Other things we can do is recognize trends and incorporate seasonality. Using trailing data: calculate revpar (or goppar) without new business, calculate revpar (or goppar) with new business, evaluate the difference. Sell 100 rooms at (half of the rooms: revpar = 0. 5 x = . 5, sell remaining 100 rooms at . 75 (assume sellout of remaining rooms, revpar = 0. 5 x . 75 = . 38, combined revpar. Rms monitor: occupancy and availability reports, group rooms pace reporting, non-rooms revenue pace reporting.