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5. Keith is the group sales manager at the 400-room full-service Tripletree Hotel Carla is the front office manager. Together with Leona, the GM, they

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5. Keith is the group sales manager at the 400-room full-service Tripletree Hotel Carla is the front office manager. Together with Leona, the GM, they make the revenue management decisions for their property. For the Saturday night that is just one week away, they have 180 unsold rooms remaining. Keith would like to accept an available group contract for the entire 180 rooms. "We'll sell out," he proclaims, and have a great RevPAR." Carla would like to reduce the room rates to $159.00 per night; which is a $20.00 reduction from the hotel's normal rate of $179.00. "How many rooms do you forecast we can sell at that rate?" asks Leona. "I believe we can sell about 120 of them," is Carla's reply. "That means we'll leave 60 empty rooms, and a lower RevPAR," protests Keith It costs $35.00 to prepare, sell, and clean (prepare for resale) a room at the Triple- tree. Review the data and then answer the following questions: Room Sold ADR RevPAR GOPPAR Keith's Plan 220 T $179.00 180 $109.00 Total Carla's Plan $179.00 220 120 $159.00 Total RevPAR GOPPAR Keith's Plan Rooms Sold 220 180 $ $ ADR 179.00 109.00 Total RevPAR GOPPAR Carla's Plan Rooms Sold 220 120 $ $ ADR 179.00 159.00 Total (4 Points Each) A.) Keith: Carla: Keith: Carla: Keith: Carla: Keith: Carla: E.) If you were Leona, whose plan would you support

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