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Calculating PAR Rate in hotel Front office, Potential Average Rate (PAR), Rate Spread, Multiple Occupancy Percentage, Potential Average Single Rate, Potential Average Double Rate.

Potential Average Rate (PAR) Online Calculator

PAR or Potential Average Rate is a very important ratio in the revenue management department. The Potential Avg. Rate (PAR) is a collective statistics that combines the potential average rate, multiple occupancy percentages and the rate spread.

There are two steps involved to calculate the potential average rate:

Step 1: Is by multiplying the Rate Spread by the hotel's Multiple Occupancy Percentage.

Step 2: Add the result from Step 1 to hotel's Average Single Rate which will then give the 'Potential Average Rate (PAR)'

The Formula for Potential Average Rate (PAR)

Potential Average Single Rate = (Multiple Occupancy Percentage X Rate Spread) + Potential Average Single Rate

Potential Average Rate (PAR) Calculator:

Multiple Occ. %:

Rate Spread :

Potential Avg. Single Rate:

Potential Average Rate (PAR) =

Example 1 - Potential Avg. Rate:

Multiple Occupancy 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

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Authored and managed by Augustine, a hotelier with over 20 years of experience in the industry. He has a 3-year diploma with 'honors' from the American Hotel & Lodging Educational Institute and a Bachelor of Computer Application - BCA Degree.