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Analyzing and Optimizing Front Office Operations: Daily Report and Ratios

Understand and assess front office performance through daily operations report, occupancy ratios, and key metrics. Learn to calculate occupancy percentages, revenue analysis, and evaluate various front office ratios for enhanced efficiency.

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Analyzing and Optimizing Front Office Operations: Daily Report and Ratios

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  1. ANALYSIS AND EVALUATING FRONT OFFICE OPERATIONS Unit V

  2. ANALYSIS AND EVALUATING FRONT OFFICE OPERATIONS • Daily Operations Report: - Occupancy ratios - Rooms Revenue Analysis - Operating Ratios - Rooms Division Income Statement - Budget Reports

  3. OCCUPANCY RATIOS Occupancy ratios measure the success of the front office in selling the hotels primary product; guest rooms. The following room statistics must be gathered to calculate basic occupancy ratios: - Number of rooms available for sale - Number of rooms sold - Number of occupied rooms - Number of guests - Net rooms revenue

  4. OCCUPANCY RATIOS Generally these data are contained in the Daily Operations report. Occupancy ratios that can be computed from these data include: -Occupancy percentage - Average Daily Rate - Multiple occupancy ratio - Average rate per guest

  5. Various Front Office Ratios House Count: (Total No of Guest stays in a particular time.) Previous night House Count + Arrivals – Departures Or Single Rooms + 2 X (Double Rooms) + Extra Beds Heritage Institute of Hotel & Tourism 5

  6. Various Front Office Ratios Room Count: (Total No of Rooms occupied in a particular time) Total No of Available Rooms – No of Vacant Rooms Or Total No of Rooms Occupied Previous Night + No of new Arrivals – No of Departures. 6

  7. Various Front Office Ratios Occupancy Percentage: Relationship of the no of Room sold to the no of Room available for sale. This measures the success of the sales department. No of Room sold ------------------------------ X 100 No of available for Sale

  8. Various Front Office Ratios Multiple Occupancy Percentage: No of Room Sold with 2 persons or more occupying each Room is called Multiple Occupancy. House Count – No of Room sold -------------------------------------------- X 100 No of Room sold OR House Count ------------------------ - 1 X 100 No of Room sold

  9. Various Front Office Ratios Average no of Guest per Room ( AGR) House Count --------------------- Room Count

  10. Various Front Office Ratios Single Occupancy Percentage: No of rooms occupied by one person is called Single occupancy. (100 – Double occupancy %) Or House Count 2 - ------------------------ X 100 No of Room Sold Or 2 X (No of Rooms Sold) – House Count ----------------------------------------------------- X 100 No of Rooms Sold

  11. Various Front Office Ratios Bed Occupancy Percentage: (Guest Occupancy or Sleeper Occupancy) No of Bed sold ------------------------------------ X 100 No of Bed available for sale

  12. Various Front Office Ratios Average Room/Daily Rate (ARR/ ADR): (Ratio of Room income to the no of occupied Rooms) Total Room Revenue -------------------------------- Total no of Rooms Sold Rev Per: (Revenue Per available Room): Total Room Revenue ---------------------------------------- Total Rooms Available for Sale

  13. Various Front Office Ratios Average Revenue Per Guest (ARPG / ARG): Total Room Revenue ---------------------------- House Count

  14. Various Front Office Ratios Overstay Percentage: (This is the percentage of schedule Departures who remain on in the Hotel, even after their schedule Departures) No of Overstay -------------------------------------------- X 100 Total no of schedule Departures

  15. Various Front Office Ratios Under stay Percentage: (This is the percentage of those Guest who leaves before the schedule date of Departures) No of Under stay ----------------------- X 100 No of Stay Over

  16. Various Front Office Ratios No Show Percentage: (This is the percentage of those Guest who did not arrive in spite of having Confirmed Reservation) No of (DNA) Did Not Arrive Guest ------------------------------------------------ X 100 No of Confirmed Reservation Guest

  17. Various Front Office Ratios Cancellation Percentage: (It is the percentage of total no of cancellations against total no of Reservations) Total No of Cancellations ------------------------------------------------- X 100 Total No of confirmed Reservations

  18. Various Front Office Ratios Foreign Guest Percentage: Foreign Guest = (Total House Count – Total Local (Indian) House Count) No of Foreign Guest in the Hotel ------------------------------------------------------ X 100 Total no of Guest in the Hotel (House Count)

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