Pearson New International Edition International pcl tp indd 1

FRONT OFFICE SEMANTICS
RevPar (revenue per available room):
Average revenue generated by each guestroom during a given
time period. The formula for RevPar is
Occupancy % (
⫻
) ADR 
⫽
RevPar
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Overreliance on corporate travel. Many extended-stay guests travel because of
their work. When business is good, there are many travelers. When the econ-
omy slows, however, so does business travel. During a slow economy, the
extended-stay segment, which is so dependent on business travel, suffers more
than other segments of the hotel industry.
OVERVIEW OF THE LODGING INDUSTRY
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Competing in a Multicompetitor environment. Nearly every hotel must compete
with other hotels for guests. Extended-stay hotels are unique, however, because
they face more than the normal number of competitors as they seek business
from potential guests. Naturally, the extended-stay hotel must compete with
other extended-stay properties. However, its most serious challenge may come
from the apartment industry, which has the facilities to compete for the long-
term traveler’s business. In markets where apartment units are in great supply
and where demand is less than supply, apartment owners who decide to target
the extended-stay traveler can create significant challenges.