Answer :
This question is related to hotel performance metrics in the field of Business. When comparing the actual room rate to the potential room rate, several metrics may be calculated. Let's explore each option:
A. Contribution Margin
- This usually relates to the difference between sales and variable costs. It is not directly calculated using room rates, so this option isn't applicable here.
B. Discount Percentage
- It is calculated as the percentage reduction from the potential room rate to the actual room rate.
- Discount Percentage = [tex]\left(\frac{\text{Potential Average Room Rate} - \text{Actual Average Room Rate}}{\text{Potential Average Room Rate}}\right) \times 100[/tex]
- Plugging in the values: [tex]\left(\frac{110 - 78}{110}\right) \times 100 = 29.09\%[/tex]
- So, the discount percentage is approximately 29.09%, not 71%.
C. Yield Statistic
- This typically refers to the comparison of actual revenue to the potential revenue.
- Yield = [tex]\frac{\text{Actual Room Rate}}{\text{Potential Room Rate}} \times 100[/tex]
- Calculate yield: [tex]\frac{78}{110} \times 100 = 70.91\%[/tex]
- The yield statistic is approximately 70.91%, which is close to 71%.
D. Rate Achievement Factor
- Similar to yield, it concerns the actual rate as a percentage of the potential rate.
- Rate Achievement Factor = [tex]\frac{\text{Actual Rate}}{\text{Potential Rate}} \times 100[/tex]
- This calculation is the same as the yield statistic, yielding approximately 70.91%.
Among the provided options, the most accurate match for 71 percent is the Yield Statistic (Option C), as it directly computes to approximately 71%.
