Pearson New International Edition International pcl tp indd 1

REVENUE MANAGEMENT
A
B
C
D
E
F
G
H
ADR
Percentage
Comp
Percentage
ADR
Percentage
Line
Year
Month
property
Change
set
Change
index
Change
1
200Y
Oct.
$ 125.71
3.45
$ 124.51
3.21
100.96
2.15
2
200Y
Nov.
126.10
3.25
125.99
3.40
100.09
0.74
3
200Y
Dec.
116.89
2.45
117.50
2.10
99.48
(1.05)
4
200Z
Jan.
122.30
1.20
123.45
3.40
99.07
(2.22)
5
200Z
Feb.
127.80
0.78
126.99
2.55
100.64
0.01
6
200Z
March
115.08
1.22
117.66
1.45
97.81
(0.05)
7
200Z
April
125.65
1.40
128.95
2.66
97.44
(1.25)
8
200Z
May
122.24
0.61
124.50
5.41
98.18
(2.01)
9
200Z
June
126.13
2.20
127.11
4.51
99.23
(3.25)
10
200Z
July
125.98
2.51
128.91
2.60
97.73
1.52
11
200Z
Aug.
126.12
1.40
129.54
1.98
97.36
(3.13)
12
200Z
Sept.
126.74
0.66
128.63
2.65
98.53
(2.20)
13
200Z
Oct.
127.02
0.01
131.25
5.41
96.78
(4.15)
Three months—ending October
14
200X
122.41
4.50
119.40
4.10
102.52
2.30
15
200Y
126.54
3.37
125.01
4.70
101.22
(1.27)
16
200Z
126.75
0.17
128.66
2.92
98.52
(2.68)
FIGURE 12
ADR Indexes for 13-month period at the Altoona Hotel.
301

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revenue management decisions. Figure 13 details the evaluations typically made
when examining a hotel’s RevPar index.
GoPar
The concept of GoPar has recently been touted as an alternative method of evaluat-
ing the effectiveness of the DOSM’s sales efforts as well as the decisions of revenue
managers. GoPar is the hotel’s total revenue minus the expenses controllable by man-
agement. For example, the costs of a hotel’s gardening services, utility bills, and even
food and beverage expenses are assessed when computing GoPar. These same
expenses, by contrast, are not considered when computing RevPar. Neither the rev-
enue manager, the FOM, the DOSM, nor their staff control most of the costs used
to compute GoPar.
If revenue managers do not directly control most of the costs involved in operat-
ing their hotels, why is GoPar (a term more familiar to hospitality accountants than
revenue managers) suggested as a method to evaluate their decision making? The
answer can be found in the way some hoteliers manipulate the RevPar index. To see
how this manipulation can occur, assume that the revenue manager of the Altoona
Hotel has achieved the RevPar index listed in Figure 14. Assume also that the