characiecistes of be hotel chan and its loyalty arogrems (click the icop to vin the characteristics ) Fisatated Requirement 1. Caculate the program contrbucion maygin for each of the thee programs, as aell as for the group of cunksmers sot subscring to the foyaliy program Which program si ine neist peatiatice Which is the least peofitable? Do not alocate freed costs to indinduat rooms of spectic loyaty peograms (Round pencentages to two decimal piaces) The group of ousioners has the highest conitrbubon marge por revenue dolas, while the group of cesstoeners has the losest contributon marqin per revence dallie Requirement 2. Deveibg an operating income statement for Seatold for the yoar ended December 31 the average room rate per night is 5 The areiage vaciatile casts per night, inclusive of the koritly program, is 3 Required 1. Calculate the program contribution margin for each of the three programs, as well as for the group of customers not subscribing to the loyalty program. Which program is the most profitable? Which is the least profitable? Do not allocate fixed costs to individual rooms or specific loyalty programs. 2. Develop an operating income statement for Seaford for the year ended December 31 . 3. What is the average room rate per night? What are average variable costs per night inclusive of the loyalty program? 4. Explain what drives the profitability (or lack thereof) of the most and least profitable loyalty programs (again, one of these may be the "no program" option). Hotel chain and loyalty program characteristics All new customers can sign up for the Seaford Bronze Card -this card provides guests with a complimentary bottle of wine (cost to the chain is $6 per bottle), $18 in restaurant coupons (cost to the chain is $9 ), and 15% off the nightly rate. The program enables the chain to track a member's stays and activities. Once a customer has stayed and paid for 25 nights at any of the chain's locations worldwide, he or she is upgraded to Silver Customer status. Silver benefits include the bottle of wine (cost to the chain is $6 per bottle), $32 in restaurant coupons (cost to the chain is $16 ), and 20% off every night from the twenty-first night on. A customer who reaches the 40-night level is upgraded to Gold Customer status. Gold status increases the nightly discount to 30% and replaces the $6 bottle of wine with a bottle of champagne (cost to the chain is $30 per bottle). As well, $42 in restaurant coupons are granted (cost to the chain is $21 ). The average full price for one night's stay is $200. The chain incurs variable costs of $65 per night, exclusive of loyalty program costs. Total fixed costs for the chain are $83,490,000. Seaford operates 12 hotels with, on average, 400 rooms each. All hotels are open for business 365 days a year, and approximately average occupancy rates are around 85%. The following are some of the statistics on the characiecistes of be hotel chan and its loyalty arogrems (click the icop to vin the characteristics ) Fisatated Requirement 1. Caculate the program contrbucion maygin for each of the thee programs, as aell as for the group of cunksmers sot subscring to the foyaliy program Which program si ine neist peatiatice Which is the least peofitable? Do not alocate freed costs to indinduat rooms of spectic loyaty peograms (Round pencentages to two decimal piaces) The group of ousioners has the highest conitrbubon marge por revenue dolas, while the group of cesstoeners has the losest contributon marqin per revence dallie Requirement 2. Deveibg an operating income statement for Seatold for the yoar ended December 31 the average room rate per night is 5 The areiage vaciatile casts per night, inclusive of the koritly program, is 3 Required 1. Calculate the program contribution margin for each of the three programs, as well as for the group of customers not subscribing to the loyalty program. Which program is the most profitable? Which is the least profitable? Do not allocate fixed costs to individual rooms or specific loyalty programs. 2. Develop an operating income statement for Seaford for the year ended December 31 . 3. What is the average room rate per night? What are average variable costs per night inclusive of the loyalty program? 4. Explain what drives the profitability (or lack thereof) of the most and least profitable loyalty programs (again, one of these may be the "no program" option). Hotel chain and loyalty program characteristics All new customers can sign up for the Seaford Bronze Card -this card provides guests with a complimentary bottle of wine (cost to the chain is $6 per bottle), $18 in restaurant coupons (cost to the chain is $9 ), and 15% off the nightly rate. The program enables the chain to track a member's stays and activities. Once a customer has stayed and paid for 25 nights at any of the chain's locations worldwide, he or she is upgraded to Silver Customer status. Silver benefits include the bottle of wine (cost to the chain is $6 per bottle), $32 in restaurant coupons (cost to the chain is $16 ), and 20% off every night from the twenty-first night on. A customer who reaches the 40-night level is upgraded to Gold Customer status. Gold status increases the nightly discount to 30% and replaces the $6 bottle of wine with a bottle of champagne (cost to the chain is $30 per bottle). As well, $42 in restaurant coupons are granted (cost to the chain is $21 ). The average full price for one night's stay is $200. The chain incurs variable costs of $65 per night, exclusive of loyalty program costs. Total fixed costs for the chain are $83,490,000. Seaford operates 12 hotels with, on average, 400 rooms each. All hotels are open for business 365 days a year, and approximately average occupancy rates are around 85%. The following are some of the statistics on the
