Why should the hotel have a "rate analysis report" and "room productivity report"? 

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litteacher8 eNotes educator| Certified Educator

Hotels use "room rate analysis reports" and "room productivity reports" to determine if their pricing strategy is working. 

A hotel room is productive if the room is getting the maximum rate it can, and is being occupied at the maximum rate.

Productivity is a ratio between input and output at a given quality level. ... [with] many possible input and output units.... (Olivier Harnisch, HospitalityNet.org)

For example, hotels require the most productive management of hotel staff and employees. Room productivity reports reveal trends and business volume that help advance productivity through efficient employee and work schedule planning.

Productivity can be effectively increased through careful forecasting of business volumes, thoughtful planning of work rotas, higher inter-departmental flexibility to cope with peak and slow periods .... (Olivier Harnisch, HospitalityNet.org)

A hotel room rate analysis report will explain the room rates received for different room types over different lengths of time.

[Room Rate Analysis] is a detailed analysis of rates and room types ... to detail room rates and availability information over [near or longer term periods], ... (Olivier Harnisch, HospitalityNet.org)

This includes availablity data, room use, and room cost rates over time.  The hotel can then recognize trends, such as seasonal travel, effect of perks, and use of amenities.

As an example of the benefit of room rate analysis, imagine that a wing of a hotel is designated pet-friendly.  It might be that at certain seasons of the year there are more travelers wanting to bring pets.  In this case, the hotel might open up additional rooms during these seasons.  If, on the other hand, the room bank is empty most of the time, the hotel might reconsider its strategy and not reserve those rooms for pets.