What is its purpose?

The Room revenue planning page is used to create monthly forecasts and budgets (plans) for room revenue. PMI auto-populates the plan with a proposed plan based on the settings selected when creating a plan. This plan can then be adjusted manually as needed.

Note that the plan for any historic months will show your actual data from the Cockpits and P&L reports.  The auto-populated calculations are for the current and future months on the plan.

How are the auto-populated plans calculated?

When a plan version is set up, the user can choose which historical data will be the basis for building the new plan.

The historical data is used to predict:

• Proportions of your total revenue that are allocated to commission, or other room revenue
• Proportions of totals that are mapped to the underlying P&L accounts

The plan also uses the list of financial (P&L) accounts that have been pre-set to each row header in the data table. If the forecast does not show expected values, choosing a different historical base or checking the financial account mappings may help to improve the accuracy of the auto-populated forecast.

Different calculations are used for each part of a plan:

1. Net room revenue: Total room revenue minus Commissions 
2. Commissions: Uses historical data to predict the proportion of total revenue that will be commission.
   1. Example: Selected base year is 2019.
      1. (2019 Total room revenue/2019 Total commission )*100 = Commission as % of room revenue 
      2. Plan month 1 Total revenue * Commission as % of room revenue = Commission forecast 
   2. If multiple base years are selected for a plan, the percentage for any month will be calculated using the total commission and total revenue for the relevant year selected for that part of the plan. 
3. Total room revenue: This is taken directly from your Live forecast at the time the plan is created. 
4. Other room revenue: Follows the same logic as Commissions using the proportion of Total revenue based on historical data.
   1. Amounts without segments:
      1. To reconcile the small differences between the daily PMS imported values used in the Live forecast and the finance system imported values used in P&L, we’ve added a line in the segments page called “Amounts without segment”  
      2. These differences will generally be small in comparison to room revenue and may be due to late adjustments made to the accounting values. These differences will only appear in past months and are included in the calculation of ARR for historic months. 
5. Room nights: This is taken directly from your Live forecast at the time the plan is created.  
6. ARR: This is calculated from the Total Revenue and Room nights: ARR = Total revenue/Room nights