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Although occupancy rates increased by 2.8% (from 72% to 74% which now exceeds the budgeted level), revenue, net of discounts,only increased by 1.8%.
This means that revenue per room per night after discounts in 20×7 was lower than in 2×06,-“in fact room revenue net of discount in 20×7 is higher than in 20×6 and how it is possible to be lower?confused here
despite the standard rate being higher ($140 v $135)
standard revenue——————111890——————-104976
discounts—————————-(16783)——————-(11540)
room revenue net of discounts-95107———————93436The answer does not say that the total revenue is lower.
It says that the revenue per room per night is lower, which it is.
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