Pearson New International Edition International pcl tp indd 1

FRONT OFFICE SEMANTICS
Room mix:
Ratio of a hotel’s room types. For example, number of double-bedded rooms compared to
king-bedded rooms, number of smoking-permitted rooms compared to nonsmoking rooms, and number
of suites compared to standard rooms.
Some revenue managers dislike STR reports because they view them as objective
measures (indexes) of a subjective activity (management). However, despite their lim-
itations, STR RevPar reports are perceived as the best indicator of a hotel’s opera-
tional quality and managerial proficiency.
A high occupancy index compensates for a lower ADR index (and the reverse is
also true). Therefore, the interpretation of a RevPar index is more complex than that
of either the occupancy index or ADR index. A RevPar index above 100 percent,
however, generally implies that a hotel leads its competitive set and is making good