2. ROOM RATE DETERMINATION
Purpose of Room Rate Determination
• Profit
• Capital Investment
• Pattern of Competition
• Target Market
• Product Line
3. ROOM RATE DETERMINATION
Formula of Room Rate Determination
The Rule of Thumb
The Hubbart/Bottom-Up
Break Event Point Analysis
Factors to Influence the Room Rate
Internal Factors
External Factors
4. ROOM RATE DETERMINATION
Factors to Influence the Room Rate
• Internal Factors
A. Target Company
B. Marketing Mix
C. Expenses/Costs
• External Factors
A. Market & Demand
B. Competitor
C. Environment
5. ROOM OCCUPANCY
Factors to Influence the Room Rate
• Internal Factors
A. Target Company
B. Marketing Mix
C. Expenses/Costs
• External Factors
A. Market & Demand
B. Competitor
C. Environment
6. ROOM OCCUPANCY
Factors to Influence the Room Rate
• Internal Factors
A. Target Company
B. Marketing Mix
C. Expenses/Costs
• External Factors
A. Market & Demand
B. Competitor
C. Environment