FO Formula – Room Achievement Factor (AF) Calculator | Rate Potential Percentage

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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 Rate 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 Occupied Rooms. Room Sold = (Occupied Rooms – Complimentary and House use)

The Formula for Room Achievement Factor AF

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 (PAR) = 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