👉 Income generated solely from the sale of hotel rooms.
📊 What is Revenue?
Revenue is the total money earned from rooms sold over a specific period, excluding other sources like food or events.
🧮 Revenue Formula
Revenue = Average Daily Rate (ADR) × Number of rooms sold
✅ Importance of Revenue
- It is the main source of income for most hotels.
- It allows you to measure the effectiveness of sales strategies and pricing on occupancy.
- It is used to calculate key indicators such as REVPAR or GOPPAR.
📘 Example of Revenue
If a hotel sells 1,000 room nights at an average rate of £110
→ Revenue = 1,000 × €110 = €110,000