Applying Average-Rate Pricing
An event lasts two days and requires room blocks for Tuesday and Saturday. In this case, there are weekday and weekend rate for Property 1. The following table shows Property 1 with the following rates:
Average Weekday Rate equals $2000 divided by 10 equals $200
Average Weekend Rate equals $3000 divided by 10 equals $300
| Property 1 | Tuesday (Weekday) | Saturday (Weekend) |
|---|---|---|
Quoted # Standard Rooms |
10 |
10 |
Price per Room |
200 |
300 |
Total Room Price per Day |
2000 |
3000 |
For Property 2, only one calculation is required to calculate the average rate for each room type as shown in the following calculation:
Average Rate equals $5000 divided by 20 equals $250
In essence, weekend and weekday pricing for sleeping rooms is only weighted average pricing.