Room Achievement Factor, Rate Potential Factor, ARR, Average Potential Rate, Front Office Formulas, Revenue Management Formula

Formula For Calculating Room Achievement Factor AF (Rate Potential Percentage)

The Room Achievement factor is also known as Rate Potential Percentage of a hotel, is defined as the percentage of the Rack Rate that the hotel actually receives by selling their rooms. 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)

Actual Avg. Rate :

Potential Avg. Rate:

Room Achievement Factor=

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

                                             = 0.74  or 74%

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