Exhibit 1 gives a hypothetical illustration
of this principle. The four spa operators have
the same RevPATH ($72, calculated by multiplying
the occupancy percentage by the
average expenditure per person), but each
achieves it in a different manner. Spa A has a
facility use of 40 percent and an average
expenditure of $180, while Spa D has a
use ratio of 90 percent but an average expenditure
of $80. Spa operators B and C also
achieved a RevPATH of $72, but with
varying facility-use and average-expenditure
statistics.