Jerielle Pelley is the front office manager at the 125-room Best Stay Inn. Her general manager has
Question:
Jerielle Pelley is the front office manager at the 125-room Best Stay Inn. Her general manager has asked her to prepare a Net ADR Yield report for the hotel’s prior month room sales. The manager has asked Jerielle to address several specific issues in the summary she is to prepare. Using the information provided below, help Jerielle calculate the answers she needs to complete her report.
The reservation generation fees that must be paid by the hotel include the following:
@ The hotel is assessed a $28.00 fee on each room sold by its third-party Internet sites.
® The franchisor assesses an $8.00 fee on each room sold through its CRS.
@ The hotel pays a $15.00 travel agent commission on each room sold by travel agents.
Calculate the net ADR yield percentages for the following distribution channels:
Net ADR Yield Walk-Ins
a. What is the net ADR yield on rooms delivered via the hotel’s third-party Internet partners?
b. What is the net ADR yield on rooms delivered via the hotel's franchisor?
c. What is the net ADR yield on rooms delivered via travel agents?
d. What is the net ADR yield on rooms sold to walk-ins?
Step by Step Answer:
Managerial Accounting For The Hospitality Industry
ISBN: 9780471723370
1st Edition
Authors: Lea R Dopson, David K Hayes