Yield statistic

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The yield statistic is the ratio of actual revenue to potential revenue. Actual revenue is the revenue generated by the number of rooms sold. Potential revenue is the amount of money that would be received if all rooms were sold at their rack rates. Potential revenue can be determined in more than one way. Some hotels calculate their potential revenue as the amount that would be earned if all rooms were sold at the double occupancy rate. Other properties calculate their potential revenue by taking into account the percentage mix of rooms normally sold at both single and double occupancy. The second method results in a lower total potential revenue figure, since single rooms are assumed to be sold at less than double rooms. In fact, while it is unlikely that a hotel will attain a potential that is based on 100% double occupancy, a hotel using the second method may actually be able to exceed its potential if demand for double rooms exceeds sales mix projections. Generally once a hotel selects a particular method of calculating a yield statistic it will use that method consistently.

Reference

Stutts, A. T., & Wortman, J. (2006). Hotel and Lodging Management An Introduction (2nd ed.). Hoboken, NJ: John Wiley & Sons.

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