pricing of rooms

PRICING OF ROOMS

FARM TOURISM

HUBBART FORMULARATE OF RETURN+OPERATING EXPENDITURE

365XNUMBER OF ROOMSXESTIMATED%OCCUPANCY

RATE OF RETURN(R.O.I) CALCULATE THE HOTELS DESIRED

PROFIT BY MULTIPLYING THE DESIRED RATE OF RETURN BY THE OWNER’S INVESTMENT

OPERATING EXPENDITURE

OPERATING EXPENDITURE CONSIST OF

VARIOUS FIXED CHARGES LIKE MANAGEMENT FEES. HUMAN RESOURCES OTHER MANAGEMENT CHARGES.

OPERATING EXPENDITURE

SALARY AND PAYROLL RELATED. ELECTRICITY DEPRICIATION. INTEREST. ROOM AMMENITIES

OPERATING EXPENDITURE

LAUNDRY TELEPHONE MARKETING PROPERTY TAX

OPERATING EXPENDITURE

SALARY AND PATROLL RELATED EXPENDITURE

(5X4000X12)=2,40,000. ELECTRICTIY 12X4000 = 48,000. DEPRICIATION@5%OF 30,00000. INTEREST OF 12%@ON 5,00,000 LOAN =

60,000. ROOM AMMENTIES 100X6X365 = 2,19,000.

OPERATING EXPENDITURE

LAUNDRY = 15,000. TELEPHONE = 5000. MARKETING = 20,000. PRORPERTY TAX = 10,000. TOTAL EXPENDITURE = 7,67,000.

DESIRED PROFIT

R.O.I XOWNER’S INVESTMENT 30,00,000 X 20% = 6,00,000.

TOTAL NUMBER OF GOODS SOLD

365 X10 X 60% = 2190. (365X NUMBERS OF ROOMSX ESTIMATED %OCCUPANCY)

AVERAGE ROOM RATE

RATE OF RETURN+OPERATING EXPENDITURE

365XNUMBER OF ROOMSXESTIMATED%OCCUPANCY

6,00,000+7,67,000

2190

=RS 624/-