An FOM must know when there is strong demand for the hotel’s rooms – that is, what special events, group activities, holidays, or other factors will impact room demand.
The hotel’s management staff must attempt to drive (increase) ADR when demand for rooms is high and attempt to drive occupancy (by offering low rates) when demand is low.
Both strategies, if successfully implemented, will have the effect of increasing RevPar, and both strategies depend on the ability of the management team to forecast room demand.