Allocation of Revenue

Objective ：

To ensure that package are properly accounted for.

Procedure ：

Total revenues from a package should be allocated to the concerned Division / Department in the ratio of the rack rates / published rates for the various components. The following example should make this clear:

Total package cost $100 per person per day.

Constituents                       Rack / Published Rate                 Ratio                      Apportionment

Room 180.00     75%                        75.00

Laundry   30.00     12.5%             12.50

Airport Transfer 30.00     12.5%             12.50

                                                240.00     100%             100.00

The price for breakfast should be arrived at based on a properly cost menu with a fair mark-up. The extent of the markup has to be resolved between the F&B and Rooms Division manager in consultation with the Director of Finance & Business Support and General Manager.

The overriding factor is that the revenue apportioned to any division / department should be at least equal to the variable cost of the service being provided.