Formula For Calculating Room Achievement Factor AF (Rate Potential Percentage)
The Room Achievement factor also known as Rate Potential Percentage of a hotel, is defined as the percentage of the Rack RateThe published tariff for each room type/category in a hotel. that the hotel receives by selling their rooms. The room Achievement factor is calculated by dividing the Actual Average Rate (ARR or ADR) by the Potential Average Room Rate.
Additionally, depending upon the hotel’s management policy the Actual Average Rate is either divided by the total Rooms Sold or OccupiedA room status term indicating that a guest is currently registered to the room. Rooms. Room Sold = (Occupied Rooms – ComplimentaryA complimentary or 'comp' room is an occupied room for which the guest is not charged. A hotel may o... and House use)
The Formula for Room Achievement Factor AFThe Formula for Room Achievement Factor AF:Room Achievement Factor = Actual Average Rate / Potential...
Room Achievement Factor = Actual Average Rate / Potential Average Rate
Calculate Your Room Achievement Factor (AF)
Result:
Example 1 – Where Actual Average Rate Taken as Rooms Sold:
Actual Average Rate = 173.00
Potential Average Rate (PARPAR (Potential Average Rate) = Room Revenue at Published Tariff or Rack Rate / Number of Rooms sold....) = 223.00
Room Achievement Factor (AF) = 173.00 / 223.00
= 0.78 or 78%
Example 1 – Where Actual Average Rate Taken as Occupied Rooms:
Actual Average Rate = 165.00
Potential Average Rate (PAR) = 223.00
Room Achievement Factor (AF) = 165.00 / 223.00
= 0.74 or 74%
