 # 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)'

## Potential Average Rate (PAR) Calculator:

Multiple Occ. %:

Potential Avg. Single Rate:

## Potential Average Rate (PAR) =

Example 1 - Potential Avg. Rate:

Multiple Occupancy Percentage = 9.00

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

Potential Avg. Single Rate         = 105.00

Potential Average Rate (PAR)    = (5.00 X 15.00) + 105.00

= (75) + 105

= 180

### Sales and Marketing Training

Setupmyhotel.com is build to help hoteliers setup their operations. Get sample Stationery, Formats, SOP's, Staff Training Tips, Job Descriptions and more.
See you around and happy Hoteliering..