Discussion Questions 1. Which RevPAR is better for a hotel owner and/or a hotel manager: the one in
March or the one in April? Is there a meaningful difference?
2. Take the March hotel data (rate, occupancy, variable cost per room) and cal-
culate it: what occupancy would be required in April with the new increased
ADR to generate identical net room revenue?
3. Take the April hotel data (rate, occupancy, variable cost per room) and cal-
culate it: what occupancy would be required to generate identical net room
revenue with the lower ADR of March?
4. What did Lance lear after he developed the first and second performance
incentives for Barbara?