Average rate means average daily rate or average realized rate of the hotel. The hotel is selling its room at different platforms for different rates they may have they may be selling on online travel agents booking.com or Expedia. They may be selling to the offline travel agents, why a normal traditional travel travel agents, they may be selling to corporates they may be selling to the government, they may have different type of rooms superior room Deluxe rooms suites room. So, in order to convey the hotel's performance in the most simple way one rate where the hotel is able to achieve at the hotels to compare the various different hotels, we use average realized rate for for comparing different hotels or different years. In order to understand the hotels and performance in detail, we may need to look at individual segments individual distribution channels how we are able to create Like our rates However, when we are comparing different hotels or here or here to for top strategic management because you're the only average geologists because this is what the average in average we are able to capture.

So, it also is kept recognized is also calculated by room revenue divided by the paid occupied of lights. So, paid occupied two nights we discussed in the previous life, consider only the rules which are actually paid and not the free rules. So, mean the average daily rate will be depending on Road Rules revenue generated divided by the fate occupy too nice so that we can understand who does performance easily. It displays the efficiency of the hotel to manage the different price segments. So, they are hotel if the hotel is selling mostly on the walk ins and the travel agents out to the bar rate and their average rate can be much higher than any other hotel where with a similar price point But selling mostly to travel agents. For example, if you're a blessing consider hotel a and hotel p where they have both they're super they're selling their Deluxe rooms for hundred dollars each.

But hotel a is mostly selling online only and B is selling offline only to the travel agents their rates will their average achieve rates will be drastically different because of the different channels that they are selling. As as we discussed in the previous slide as well, the rates you can manage very high, but then your occupancy may not be very high. So, average rate itself will also will not tell us anything good about the hotel's performance, it just tells about the achieved rate of the hotel, but is it enough or is it not enough or is it coming at a cost of occupancy or not? So, instead of comparing the hotel's performance via average rate, we normally compare by another metrics which we are going to discuss now, the average rate can be discrete degrees or increased without any change in the price by just changing the distribution channels or focusing on different category of loops.

So the average A plus A we are saying that our average rate is higher than the previous year. It does not mean we increase the price. It just means that we are able to sell to a different market segment which were paying a higher price or we were able to sell higher room categories which were able to generate a higher average realized rates