Pearson New International Edition International pcl tp indd 1

FRONT OFFICE SEMANTICS
Revenue:
Money the hotel collects from the sale of rooms or from the sale of the hotel’s products and
services.
Sales:
Number of units (such as guestrooms) sold.
Generally, FOMs are interested in maximizing both revenue and the number of
rooms sold, because when the maximum number of rooms is sold at the highest possi-
ble ADR, RevPar is maximized. By accurately forecasting future demand (sales) and
revenue, FOMs can make the rate and sales decisions needed to maximize RevPar. In
addition, an understanding of anticipated revenues and number of rooms sold helps
FOMs and other managers to schedule the correct number of staff at the right time.
Assume in Lea’s hotel that one front desk agent can properly (according to stan-
dards) check in 50 guests during a shift. If Lea forecasts 200 check-ins on a specific
shift, she would need four front desk agents (200 guests 
⫼
50 guests per front desk
agent) for that shift. Without a room sales forecast, she might schedule too few or
too many staff members. A sales history can be properly maintained if PMS records
are accurate.