Hello, in the previous two slides, we have discussed occupancy and average rate now, we are going to discuss about the remaining per available room rate. So, occupancy percentage and average and average rate are telling us only, but one side of the equation if the occupancy is very high it may come at every if every word is very high, it may come it may happen that our rules are not 100% occupied. So, another matrix which is called revenue per available room take care of both of these metrics. So, by if you if you measure these metrics the revenue per available room or in short we call it a wrap up their occupancy percentage and average rate are made redundant. So, how we calculate that room revenues divided by available books. So, this is this metric will be able to tell us the efficiency of the hotel in managing the occupancy and the average rate together.

Some hotels may Have a strategy of putting a higher price but accepting a lower volume of the business, some orders may go for a very high rate, very low rate, but getting the most of the value business which are key which strategy is good or bad we will look at later however, the efficiency of the different strategies will be measured by a revenue per available room, higher the revenue per available room will be higher will be the profit of the company. It can also be calculated by occupancy percentage multiplied by the average realized rate. So, the higher the rate means higher the chances of the hotel to affect the to increase the profitability of the hotel. So, it's also mostly used when we are comparing different hotels with different strategies and different sizes. So normally instead of comparing the average rate between the two hotels or occupancy rate between the two hotels we use rev par which is giving us the efficiency Which is giving us the picture a whole picture of both strategies put together between the different hotels