Potential Average Rate (PAR) Online Calculator
PARPAR (Potential Average Rate) = Room Revenue at Published Tariff or Rack Rate / Number of Rooms sold.... or Potential Average Rate is a very important ratio in the revenue management department. The Potential Avg. Rate (PAR) is a collective statistic that combines the potential average rate, multiple occupancy percentages, and the rate spread.
There are two steps involved in calculating the potential average rate:
Step 1: This is by multiplying the Rate SpreadThe Formula for Calculating Rate Spread:Rate Spread = Potential Average Double Rate - Potential Aver... by the hotel’s Multiple Occupancy PercentageMultiple Occupancy Percentage is used to determining the double occupancy ratio of the hotel and to ....
Step 2: Add the result from Step 1 to the hotel’s Average SingleA guest room assigned to one guest/pax. In beverage operations; a drink prepared with the standard m... Rate which will then give the ‘Potential Average Rate (PAR)’
The Formula for Potential Average Rate (PAR)
Potential Average Single Rate = (Multiple Occupancy PercentageOccupancy Percentage is the most commonly used operating ratio in the hotel front office; The Occupa... X Rate Spread) + Potential Average Single Rate
Potential Average Rate (PAR) Calculator:
Calculate Room RateThe price of hotel charges for overnight accommodations. Spread (RRS)
Example 1 – Potential Avg. Rate:
Multiple OccupancyThe number of rooms sold to the total. Percentage = 9.00
Rate Spread = 25.00
Potential Avg. Single Rate = 125.00
Potential Average Rate (PAR) = (9.00 X 25.00) + 125
= (225) + 125
= 350
Example 2 – Potential Avg. Rate:
Multiple Occupancy Percentage = 5.00
Rate Spread = 15.00
Potential Avg. Single Rate = 105.00
Potential Average Rate (PAR) = (5.00 X 15.00) + 105.00
= (75) + 105
= 180
