Monday, November 28, 2016

Week 8 EOC: Quiz ch.8 question 4

a. The total revenue of Oct. 2009 is $545000 and total revenue of Oct. 2010 is $583000
b.  THe GOP of Oct. 2009and 2010 are $16200 ('09) and $184550 ('10). It is for shortcomings such as these that hoteliers now consider an analysis of a hotel’s GOPPAR to be of such importance. As you may remember, gross operating profit (GOP) is total hotel revenue less those expenses that are considered directly controllable by management.
c.    The GOP percentage for OCt. 2009 and 2010 are 26.72% ('09) and 31.66% ('10). While GOPPAR is not really a new concept, it has recently been touted as an alternative to the RevPAR analysis method of evaluating the effectiveness of a hotel’s revenue generation ability. Gross operating profit per available room (GOPPAR) is simply defined as a hotel’s total revenue minus its management’s controllable expenses per available room.
d.  The flow through of Santi's hotel is 59.34% this indecates an effeciency in managment. Flow-through is a concept that, while not directly connected to rooms pricing, is extremely helpful to understanding the pricing philosophy that is best used by a specific hotel. (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. [The Art Institutes].)

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