Pearson New International Edition International pcl tp indd 1

Revenue Generation Reports
Most night audits include several revenue generation reports to detail daily and
month to-date or budgeted statistics or both. Comparisons to prior year or to bud-
geted figures, or to both, may be provided. Figure 9 shows a single day’s ADR 
report for the Altoona Hotel. Note that current (today’s) ADR data are compared
with month-to-date ADR data, forecasted ADR data, last year’s same-date ADR
data, and last year’s month-to-date ADR data. The comparisons are made in variance
dollars and variance percentages. Figure 9 illustrates just one type of revenue 
analysis report available to managers who need more information about the hotel’s
revenue sources than can be learned by reviewing a single day’s Manager’s Daily rev-
enue report.
Revenue generation reports are one of the most commonly used types of PMS
reports, because an analysis of revenue inevitably leads to an analysis of guests and
their purchase decisions. As managers learn more about their guests, they are better
able to serve them. Knowledge of past behavior of guests helps to better predict
future behavior. Revenue analysis reports can help FOMs learn about guest behavior
as they create reports such as “Revenue by Room Type.” These reports typically detail
the amount of revenue generated from each of the property’s room configurations
(e.g., standard king, king suite, and double-double). These can help FOMs under-
stand demand for each room type and can lead to better demand forecasting and
improved pricing strategies.
The FOM is not the only manager interested in revenue reports. For example,
David Berger is the food and beverage director at the Altoona. On Monday, his fine-
dining restaurant reported revenues of $2,000, and on Tuesday revenues were $4,000.
These numbers will mean more to David if he knows the number of guestrooms sold
on these two nights. Customized “Restaurant Revenue per Occupied Room” or
“Restaurant Revenue per In-House Guest” reports can help him learn the reasons for