Room Rate Optimizer

This calculator searches price changes from -20% to +20% around your Current Rate to find whichever one maximizes RevPAR, using Price Elasticity to translate a rate change into an occupancy change. Current Rate and Current Occupancy each have an exact, proportional effect on their optimized counterparts -- Optimized Rate scales in exact lockstep with Current Rate, and Optimized Occupancy scales in exact lockstep with Current Occupancy, because the percentage rate change that maximizes RevPAR turns out to depend only on Price Elasticity, never on the starting rate or occupancy themselves. Rate Change itself is a pure function of Price Elasticity alone -- Current Rate, Current Occupancy, Comp Set Avg Rate, Demand Factor, and Total Rooms have zero effect on what percentage change the optimizer recommends, only on the dollar figures that percentage gets applied to.

Daily Revenue Gain is measured against a demand-adjusted baseline, not your raw Current RevPAR -- the calculator applies Demand Factor to that baseline the same way it applies it to every rate the search tests, so Demand Factor on its own never manufactures a revenue gain out of thin air; a gain only appears once Price Elasticity makes some price change genuinely more profitable than holding your Current Rate. Comp Set Avg Rate only feeds the Competitive Index -- it never affects the optimized rate, occupancy, or revenue figures at all. That demand-adjusted baseline is also exposed directly as Demand-Adjusted Baseline RevPAR, so you can see exactly what Daily Revenue Gain is measured against -- since it differs from Current RevPAR whenever Demand Factor isn't 1, comparing Optimized RevPAR to Current RevPAR alone won't reconcile with the gain figure; comparing it to Demand-Adjusted Baseline RevPAR will.