The break-even point (as measured in percentage of occupancy) of the hotel industry is:
A) More than 85% occupancy for most hotels
B) Goes down as Revpar goes up
C) A measure of room sales only
D) Goes up step-by-step with double occupancy
E) All of the above except A

Question

Quizplus · Accepted Answer

The break-even point decreases as RevPAR (Revenue per Available Room) increases because higher revenue per room can cover fixed and variable costs more effectively, reducing the occupancy percentage needed to break even.

The Break-Even Point (As Measured in Percentage of Occupancy) of the Hotel