Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A hotel manager is negotiating with a customer the room rate that will be charged to attendees of an assembly to be held at the

A hotel manager is negotiating with a customer the room rate that will be charged to attendees of an assembly to be held at the hotel. In this activity, the organizers are responsible for obtaining a room rate that is competitive for attendees and getting a minimum number of people to stay during the activity. The cost of the rooms is at the guests' own and is NOT included in the registration cost they pay to attend the Assembly. Organizers are responsible for paying for food during activities (breakfast, lunch, and snack, this includes service and other assembly support activities), in return they can use the conference rooms for free. The cost of dinner is not covered in the cost of the rooms or by the organizers. Room cost does NOT include breakfast, lunch or dinner. It also does not include the cost of washing or ironing clothes. These costs are separate. The hotel provides free internet but does not include long distance calls as part of the room rate. The client estimates that the assembly will be attended by 200 people and that at least 10% of these will be staying at the hotel because they come from abroad. The activity will take place during the low season of the hotel, so the hotel manager understands that he will have enough rooms available to comply with the agreement. 


1. What costs should hotel management take into account when computing the total price per room per night that will be charged to customers during regular season (assume all rooms are the same)? DO NOT use monetary amounts, ely real or hypothetical. Provide a list of 10 costs using the table after question 2. It should include some costs that are specifically of the room and others of the hotel in general and should refer to costs for different reasons. 


2. What costs should the hotel manager take into account when counting the total price per room per night that he will grant to assembly attendees during the off-season? Use the last column in the table to indicate whether it is relevant or not. Cost From the Room From the Hotel in General Relevant (Yes or No) Example: Depreciation expense of receiver furniture X No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 


3. Assembly attendees always have the option to stay at the assembly hotel or another nearby hotel. In addition to a low or competitive price, what other considerations or variables can the hotel manager use when promoting his rooms and the hotel among the tuition of the assembly to make the hotel stay more attractive than that of any competitive hotel? Provide a list.

Step by Step Solution

3.47 Rating (154 Votes )

There are 3 Steps involved in it

Step: 1

1 The table showing various costs has been given in the explanation below 2 The table showing whethe... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

6th edition

978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163

More Books

Students also viewed these Accounting questions

Question

What are the essential differences between victim and annex caches?

Answered: 1 week ago

Question

=+a) Comparing the ratings of a new telephone set on a

Answered: 1 week ago

Question

high proportion of Protestant Christians

Answered: 1 week ago