How is the total hotel authorization calculated?

The total hotel authorization is calculated by considering the physical cap-out of order rooms in conjunction with the cancellation forecast. This method effectively accounts for the rooms that are unavailable for booking due to maintenance or other operational issues (the physical cap-out of order rooms) while also factoring in the expected cancellations (cancellation forecast).

This approach provides a more comprehensive view of the hotel's availability and revenue potential. By using both elements, the calculation reflects a realistic scenario of what rooms are actually available and what might become available as cancellations occur. This ensures that hotel management can make informed decisions regarding capacity management and revenue optimization.

The other options do not properly align with how total hotel authorization is determined, as they either overlook critical aspects of available rooms or incorrectly use slippage metrics without considering the broader context of cancellation impacts.