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:
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
