Hotel Front Office Management, 3rd Edition

CHAPTER RECAP 283Figure 10-7. These formulas offer an easy method for determining operating statistics.StatisticOccupancy percentageMethodnumber of rooms sold 100number of rooms availableDouble occupancy percentage number of guest number of rooms sold 100number of rooms soldYield number of rooms sold average daily rate 100number of rooms available rack rateAverage daily rateRevPARroom incomenumber of rooms soldroom revenuenumber of available roomsorhotel occupancy percentage average daily rateSolution to Opening DilemmaIt is important to prepare a training outline that will maximize the front office manager’sefforts in training the night auditor. The session can begin by explaining that the objectiveof the night audit is to evaluate the hotel’s financial activity and that the night auditprocess monitors departmental financial activity. The outline should cover the major conceptsof posting room and tax charges, assembling guest charges and payments, reconcilingdepartmental financial activities, reconciling the accounts receivable, running thetrial balance, and preparing the night audit report. The front office manager should explainthe formulas used to balance the night audit: formula to balance guest ledger, formulato balance city ledger, and formula to balance bank deposit, as well as formulas tocompute operating statistics.Chapter RecapThis chapter demonstrated the importance of producing an accurate summary of thefinancial transactions that occur in a hotel on any given day. The components of the nightaudit were listed and described. These include posting room and tax charges, assemblingTLFeBOOK