What additional component is included in the formula for total hotel authorization?

The formula for total hotel authorization includes various components that address the hotel's capacity and the financial measures that impact its operations. Including physical capacity is essential because it reflects the maximum number of guests a hotel can accommodate based on the available rooms. The over/under authorization variance component is also critical because it indicates adjustments to expected occupancy levels that have either exceeded or fallen short of projections, which can significantly influence revenue predictions and operational capacity.

In this context, adding these components together allows hotel management to have a comprehensive view of their operational limits and financial expectations, which aids in making informed decisions regarding bookings and resources. This holistic approach ensures that all relevant factors affecting authorization are considered, thereby improving the overall management of hotel capacity and revenues.