Traditional Culture Encyclopedia - Hotel reservation - How to calculate the cost of hotel rooms in order to make room pricing, and how much is the profit margin. thank you

How to calculate the cost of hotel rooms in order to make room pricing, and how much is the profit margin. thank you

This is more complicated.

First of all, you have to determine what your fixed cost is. That is to say, even if there is no one in your hotel, you still have to pay so much money. For example, labor costs, electricity charges, some water charges, etc.

And the wages you pay workers for your local wages

If there is room for profit, then you can estimate how many guests there are. Suppose a guest room is x yuan, then the total guest room is n. Multiply the two. That's your income. Then you subtract your fixed cost from this, and then subtract the variable cost. It's your income. The so-called variable cost is that with the increase of customers, some of your depreciation expenses, cleaning the menu, cleaning the room and related expenses will also increase

profit = income-fixed cost-variable cost.

the variable cost changes greatly, and some related ones can be set by you. The smaller the cost, the greater your profit. Also remember, don't forget depreciation, because this is an invisible cost, such as a bed in your hotel, which can't be used for a lifetime. Some equipment in the guest room can't be used for a lifetime. There will be depreciation charges.