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. Assume you are the revenue manager of Hotel XYZ, which has 300 rooms. You received a group booking request that a tourist group of
Assume you are the revenue manager of Hotel XYZ, which has 300 rooms. You received a group booking request that a tourist group of 80 people wants to stay at your hotel for three days (next Monday, Tuesday and Wednesday). The group proposed a group room rate is $45 for 80 rooms. Therefore, you need to decide whether or not to accept the group's request. To make your decision, you checked your revenue management system first and found the demand forecast for next week as follows. Forecast Week Day Monday 200 Tuesday 250 240 Wednesday Your ADR for transient guests is $110, and your room variable cost is $35. And, the tourist group leader told you that the group will pay $15 per person per day for having breakfast at your hotel. The variable cost of breakfast is $7 per person. Please conduct displacement analysis using this Excel template Minimize File Preview 0 - ZOOM + Hotel Size Average Room Rate Variable Room Cost Group Breakfast Rate Variable breakfast Cost Group's F&B Contribution Day Monday Forecast Group Room Transient Displacement Tuesday Wednesday Displaced Room Displaced Revenue Group's F&B contribution Contribution Needed Minimum Room Rate for group
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