gunner2010
Mouseketeer
- Joined
- Mar 26, 2013
I don't disagree that some expenses are there regardless. However, I would have to imagine, an empty room costs the hotel less than a room booked at 75% off. An empty room doesn't take showers, run the A/C, watch TV, have to have the bedding changed etc. And not all hotels have restaurants & room service.
There is a breakeven point for profit based on the number of rooms sold and the ADR (avg daily rate). Once you past that point, it becomes profit.
So there are times where a 75% off room is a profit that you will take.
Heck tonight, right before I left the hotel, we opened up some rooms at 40% off our BAR (best available rate). Basically I was fine for the night and anything I took, moving forward for the night was just that much more profit.
I would take pretty much anything for the rest of the rooms I had because it was better then having those rooms sitting empty in the morning.
We make over 75% profit on our rooms (on average). Now that is just your rooms. After you factor in everything else, you still walk away with a very nice profit, but nothing close to that number
Maxing room revenue in hotels is a science and most hotels will have people on site (or in their corp office) who's only job is to max revenue. Heck to hold my certification with my hotel brand, I have to pass annual tests on revmax.