Room Income Analysis Calculator

Measure room income with occupancy and rate inputs. Include fees, discounts, commissions, and operating costs. Get instant insights for pricing, budgeting, and performance planning.

Calculator Inputs

Use operational, pricing, and cost values to analyze room department performance for any booking period.

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Example Data Table

Sample monthly values show how room income trends can change with occupancy, pricing, and distribution costs.

Month Rooms Days Occupancy % ADR Gross Room Income Net Room Income RevPAR
January 100 31 68.0% $138.00 $321,540.00 $112,880.00 $89.10
February 100 28 74.5% $146.00 $345,960.00 $128,220.00 $103.25
March 100 31 79.0% $154.00 $404,150.00 $161,990.00 $116.20
April 100 30 71.0% $149.00 $356,280.00 $136,430.00 $105.60
Formula Used

The calculator combines occupancy, pricing, and cost drivers to estimate room department performance. Key formulas are shown below.

Effective Available Room Nights = (Total Rooms - Out-of-Order Rooms) × Period Days
Planned Occupied Nights = Effective Available Room Nights × Occupancy %
Realized Occupied Nights = Planned Occupied Nights × (1 - Cancellation %) × (1 - No-Show %)
Paid Room Nights = Realized Occupied Nights - Complimentary Nights
Effective ADR = ADR × (1 - Discount %)
Base Room Revenue = Paid Room Nights × Effective ADR
Gross Room Income = Base Room Revenue + Extra Adult Revenue + Other Room Revenue
Net Room Income = Gross Room Income - OTA Commission - Payment Fees - Variable Costs - Fixed Room Expenses
RevPAR = Base Room Revenue ÷ Effective Available Room Nights
Yield % = Effective ADR ÷ Rack Rate × 100

Taxes are shown separately as pass-through collections, so they do not inflate net room income.

How to Use This Calculator
  1. Enter the analysis period in days and the hotel room inventory.
  2. Add out-of-order rooms to reflect maintenance blocks or unavailable stock.
  3. Provide planned occupancy, ADR, and rack rate for pricing comparison.
  4. Fill in discounts, cancellation rate, no-show rate, and complimentary nights.
  5. Add room-related extras, taxes, commissions, and payment processing fees.
  6. Enter per-night variable costs and total fixed room expenses for the period.
  7. Click Analyze Room Income to view results above the form.
  8. Use the CSV or PDF buttons to export the result summary table.

For best decisions, compare multiple scenarios by changing occupancy, ADR, and commission assumptions. This helps evaluate pricing strategy, channel mix, and cost controls.

Professional Room Income Review Notes

Revenue Structure and Measurement

Room income analysis should separate volume, rate, and deductions. This calculator converts room inventory and bookings into effective available room nights, then estimates realized occupancy after cancellations and no-shows. It also separates paid nights from complimentary stays, helping managers protect ADR quality. By splitting base room revenue, extra adult fees, and other room revenue, the tool shows whether topline movement comes from pricing, upselling, or occupancy growth.

Occupancy Quality and Demand Leakage

Planned occupancy often overstates actual performance. A hotel may forecast 78% occupancy, but a 6% cancellation rate and 3% no-show rate can materially reduce realized room nights. The calculator converts that leakage into both nights and percentage-point gaps, making forecasting risk visible. This supports tighter deposits, better channel rules, and more accurate staffing plans. Monitoring leakage with complimentary nights also highlights where reported occupancy looks healthy while paid demand remains weak.

Rate Integrity and Yield Performance

ADR alone is incomplete. The calculator computes effective ADR after discounts, then compares it with rack rate to produce yield percentage. For example, a 160 rate with a 10% discount becomes a 144 effective ADR, which is 90% yield versus rack. This helps teams evaluate promotions using cleaner pricing signals. Managers can test scenarios and quickly see whether discounting improves paid nights enough to justify lower rate integrity.

Cost Visibility and Net Room Income

Gross room income can look strong while margins weaken. OTA commissions, payment fees, housekeeping cost, linen and amenities cost, and fixed room expenses all change profitability. This calculator includes those items to estimate net room income, net income per available room, and average net income per paid night. These outputs reveal whether channel mix or operating costs are eroding returns, even during high-occupancy periods.

Planning Decisions and Break-Even Control

Contribution per paid night and break-even occupancy are the most actionable outputs for budgeting. The calculator estimates contribution after variable and transaction costs, then calculates the paid nights needed to cover fixed room expenses. It also shows the occupancy gap against a target. Revenue, finance, and operations teams can use these metrics to align pricing, promotions, staffing, and maintenance plans around profitable room department performance.

FAQs

1. What is the difference between gross room income and net room income?

Gross room income includes room sales and room-related extras before costs. Net room income subtracts commissions, payment fees, variable servicing costs, and fixed room expenses for a clearer profitability view.

2. Why does the calculator track cancellations and no-shows separately?

They affect performance at different stages. Cancellations reduce expected arrivals earlier, while no-shows reduce realized occupancy after rooms were forecast as sold, which impacts staffing and revenue accuracy.

3. Should taxes be included when reviewing room department profit?

Usually no. Taxes are typically pass-through collections. This calculator reports taxes separately so profit metrics stay focused on operating revenue and controllable room department costs.

4. How can I use the yield percentage in pricing decisions?

Yield compares effective ADR after discounts against rack rate. It helps determine whether promotional pricing is protecting rate integrity or lowering income too much for the occupancy gained.

5. What does break-even paid occupancy tell hotel managers?

It estimates the paid occupancy level needed to cover fixed room expenses after variable and transaction costs. This makes budgeting and target setting more realistic.

6. How often should I run a room income analysis?

Run it daily for operational control, weekly for trend checks, and monthly for budgeting reviews. Frequent scenario testing improves pricing, channel mix, and cost management decisions.

Related Calculators

Daily Room ProfitRoom Cost RecoveryBreak Even OccupancyRoom Revenue ThresholdOccupancy Break EvenProfit Per Sold RoomAverage Room Profit

Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.