A hotel received a room reservation for $200 from one of its distribution channels. The reservation fees to be paid for the reservation are 20%.What will be the Net ADR yield on this reservation?

Question

Quizplus · Accepted Answer

The reservation fees to be paid are 20% of $200 which is $40. Therefore, the room revenue after fees will be $160. To calculate the Net ADR, we need to divide the revenue by the number of rooms sold, which in this case is 1. 
Net ADR yield = ($160 / 1) * 100 = 160% 
However, since the question is asking for the Net ADR yield and not the percentage, we need to subtract the fees percentage from the result. 
Net ADR yield = 160% - 20% = 80%. Therefore, the best choice would be C.

A Hotel Received a Room Reservation for $200 from One