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Say for example a baker who sells cakes for 10 per piece.
Total revenue formula hotel. The formula to do this is below and we cover net revenue fully here. If she regularly sells 100 pieces of cake per month her total revenue is 1 000. The formula for calculating total revenue can be written as. Once the business deducts the total cost of promotional discounts or refunds this reveals a more insightful figure called net revenue or net sales.
Regarding the total revenue function only in a perfectly competitive market p is obtained to be a constant independent of the firm s quantity sold q. Revenue number of units sold x price per unit of good or service. Here is the formula for total revenue. It is a very classic kpi and regarded as one of the most important financial calculation for any hotel to see how much revenue they have made within a certain period of time.
Trevpar 25 585 26 258 99 16. Total hotel revenue for 01st sep 2017 25 585 26. And q quantity sold per period. Total hotel revenue for 30th aug 2017 33 890 00.
When an analysis is carried out revpar figures can be compared to revpar of the hotel during the same time frame of the previous years or to its compset. Where p price of the product. Total revenue p x q p refers to the price per unit of that product while q refers to the quantity sold during the period you re calculating for. Revenue per available room.
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