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Will a room-rate change offset the occupancy response?
Compare room contribution rather than revenue alone after variable occupied-room costs.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Available rooms
- 100
- Days in period
- 30 days
- Current average net room rate
- $160
- Current occupancy
- 70 %
- Proposed net room rate
- $180
- Expected occupancy at proposed rate
- 65 %
- Variable cost / occupied room-night
- $35
Room contribution change in period
Example result only, not a forecast or promise.
- Current room contribution
- $262,500
- Proposed room contribution
- $282,750
- Break-even new occupancy
- 60.3%
What to do with this result
Analyze segments, channels and event dates separately; exclude tax and pass-through charges and avoid treating an average rate as a forecast.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Period room contribution = rooms × days × occupancy × (net room rate − variable occupied-room cost).
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Use net collected sales and avoid double-counting returns, commissions or pass-through charges. Demand and customer behavior require validation.