1.A hotel has the following late booking quotes:

If occupancy is less than 25%, quote price 100% of normal.

If occupancy is less than 50%, quote price 120% of normal.

If occupancy is more than 65%, quote price 125% of normal.

a) The hotel has a rack rate of $225 and current occupancy is 68%. If someone called for a late booking what price would you quote them (in dollars)? (2 Marks)

b) Assuming it was December 1^st in the simulation, would this be a booking policy you would use? Why or why not? (4 Marks)

2. At the end of year 1 of the simulation, what menu and food supplier was chosen by your hotel?What was your price?What was the rationale behind your decision?

3.Your partnership group has just purchased a 400 room airport hotel for $8,000,000. At the time of purchase the hotel routinely blocked off 25% of weekday rooms for tours and 10% of weekday rooms for conferences. At the time of purchase how many rooms are available for transients?Should these percentages remain static throughout the entire year?Why or why not?

4. It is January and you have just taken over a 200 room hotel in poor condition. You have been chosen to lead the refurbishment program. Your beginning cash balance is $200,000. The owner expects all of the rooms to be refurbished to a Level 3 HOTS standard by the end of the year. (Assume the same room demand characteristics as we had in our simulation)

a)Explain how you would schedule the refurbishment of the rooms

b)What will be the total cost of this? How are you planning on paying for the renovations.

c)What changes would you make to other decision areas during the renovation?What changes will you make after completion of the renovation?