pricing of rooms
TRANSCRIPT
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/-