4 WEEK 5 - Weekly Exercise - Saved to this PC References Mailings Review View Help O Search A Aa Po EEEEE 2 T ADA AaBbccd AaBbCcDdi AaBb AaBbccl 1 Normal 1 No Spac... Heading 1 Heading 2 1.1.2.3 Paragraph Styles 4.5.1.6.1.7.189.1.10 11.1-12-1-13.-14.1.15 16 SECNARIO: The Vineyard Hotel has 70 rooms, a beautiful restaurant and a conference room with a maximum capacity of 30 guests. The high season for this hotel is during the summer, mostly driven by leisure transient travelers who are coming to Niagara. One of the busiest weekends in the year is the "Canada Day" long weekend and historically the hotel has had high occupancies during this weekend. The demand in the entire region is high during this weekend. The revenue manager has therefore forecasted to have an average ADR of $195 all driven by transient travelers. Normally the hotel has not taken any groups over this weekend, however this year the hotel received a group request from a Travel company called "Travel Fun". The Vineyard Hotel has received other groups from "Travel Fun" and this company has given the hotel bookings during low season as well. They are looking to book 21 rooms a night for 3 nights with a group rooms price of $125 per night per room. They are also looking for a breakfast $15 per person (3 mornings). They need a meeting room for 2 days at $350 a day HOTEL FACTS: Transient Hotel Price & Cost for Food Net Revenue/ Transient Meal Price Food Cost % Food cost $ Margin capture % Breakfast $18 30% $5.40 $12.60 50% Total amount of group guest rooms: 63 (3:21) Total amount of group breakfast: 63-(3-21 - For this example we assume rooms are single occupancyl Meeting Room (Other Revenue): $350 a day - need 2 days: $700 total ity. Investigate . D Focus 4a WEEK 6 - Weekly Exercise - Saved to this PC References Mailings Review View Help O Search - A Aav Ao -A-D-A- EL AaBbceDdl AaBbccdi AaBC AaBE 1 Normal 1 No Spac... Heading 1 Headis Paragraph Styles 12 3.1 4.15 16 17 18 19 1.10.1111.12.1 13. 14. 15. 16. Meeting Room (Other Revenue): $350 a day-need 2 days: $700 total . HOSP1320 REVENUE MANAGEMENT Question 1: Calculate the displaced rooms a day (2 points) Hotel inventory 70 I Friday Saturday Sunday 30-Jun 1.Jul 2.Jul Hotel Forecasted Rooms Sold 65 70 65 Forecasted rooms available Group Rooms requested 21 21 21 Displaced Rooms cessibility: Investigate Focus Ha WEEK 6 - Weekly Exercise - Saved to this PC References Mailings Review View Help O Search A Aa to E ALT APA - AalbCD AaBbccdi AaBb AaBbc 1 Normal 1 No Spac... Heading 1 Heading Paragraph 15-1.67 Styles 10 111 112 113 114 115 116 9 1 1.1.2.1.3.1.4 Total Rooms displaced: Question 2: Calculate Total Room cost for group and transient (2 points) Segment Transient Group Room ADR/Price S 195.00 $ 125.00 Cost Guest Room Variable Franchise Cost Fee $ 15.00 3% $ 15.00 3% Marketing Fee Total Cost 29 $ 2% $ Question 3: Establish the Net Room Revenue Differential (2 points) Total Group Room nights Group Room Rate $ Total Group Room Revenue S Total Group Room Cost S Total NET group room Revenue $ Total Displaced Transient Room nights Displaced Room Rate 1 Displaced Room Revenue Total Transient Room Cost $ $ $ ility: Investigate 12 113 114 115 116 17 TOLdi Idrisien NOOMI LUSE Total Displaced Rooms Revenue $ Net Room Revenue Differential $ HOSP1320 REVENUE MANAGEMENT Question 4 Establish Net Food Revenue Differential (2 points) 63 Group Breakfast Group Breakfast Breakfast Group price $15.00 Breakfast Cost $5.40 Margin Group Breakfast $9.60 Group Breakfast contributions References Mailings Review View Help Search - Aav Po EEE E AL avera 1 AaBbccdi AalbCcDdl AaBb Aa 1 Normal 1 No Spac... Heading 1 Head Paragraph 3 1.4 1.5 1.6 1.7 11 2. 8 1.9.10 111 112 113 Styles 14 115 116 53 Transient Breakfast Displacement Transient Room nights Breakfast price $ 18,00 Breakfast Cost $ 5.40 Margin Transient Breakfast $ 12.60 Transient Capture Rate 50% Transient Breakfast contribution $ What is the Net Food Revenue differential? $ Question 5 a. Calculate the total increase or decrease when accepting this group (2 point) Net Room Revenue Differential S Net Food contribution differential $ Other Revenue contribution S Total Increase/Decrease from Group $ b. According to the answers of Question 5 a., would you recommend the hotel to take this group during the long weekend YES of NO and explain in your own words why? (5 points) bility. Investigate