2) Situation: A guest attempts to check-in and their reservation cannot be found in the computer system. This situation occurs 10 times per day and results in a time loss of 10 minutes and 20 seconds per occurrence.

Calculate the Recovery costs and the opportunity costs. Then use your answers to calculate the total costs per occurrence and the total costs per year.

Round each answer to the nearest cent before proceeding to the next calculation.

Recovery costs per Occurrence

Hourly rate for front desk: $20

Time fixing error: 0.17 hours

Recovery costs per occurrence = _______

Recovery costs per Year

Frequency of occurrence in 24 hours: 10 times Days in a year: 365

Recovery costs per year = _____________

Opportunity Costs per Occurrence

Frequency of error percentage: 9.9% Discontinuance percentage: 23%

ADR: $140

Average Length of Stay: 3 days

Opportunity costs per occurrence = ________

Opportunity costs per Year

Frequency of occurrence in 24 hours: 10 times Days in a year: 365

Opportunity costs per year = _____________

Total Costs per Occurrence

Recovery costs per occurrence (previously calculated): ___________ Opportunity costs per occurrence (previously calculated): ___________ Total Costs per Occurrence = ___________

Total costs per Year

Recovery costs per year (previously calculated): ___________ Opportunity costs per year (previously calculated): ___________ Total costs per Year = __________