Displacement Analysis (14 points) The Winsor has 400 rooms. The average transient rate in March is S142. The variable room cost is $17 (per room). The Windsor is also paying a royalty fee of496 and a marketing fee of 3% of room revenue. A local university's business student alumni association plans a reunion. The group requests single rooms for $65 per room night, mcals, and other services for a 3-day event between March 6-8. The following is the group's request 03 80 Total 235 235 85 $600 The forecasted transient demand of the hotel for the days in question is as follows: This means that the hotel will have to displace some of the forecasted transient demand in order to accommodate the group. The displaced transient room nights for the first night will be 50 rooms (400-85-365 - 50); and for the second night is 40 rooms (400-80-360 40 The hotel's capture rate (% of transient guests purchasing a meal) and other relevant data per meal period for transient guests in March are as follows: cost The group meals have the same food costs per item as the transients but are sold at discounted price: cost 60 Beverage costs and prices are the same for group guests and transients. The average beverage price is S6.00 and the average beverage cost is 29%. The organizer believes that 70% of the group members will purchase one beverage per day. The beverage capture rate of transient guests is 40%. Grou Transicn S6 S6 29% 235 90 70% Please conduct a displacement analysis to determine whether confirming or rejecting the group Displacement Analysis (14 points) The Winsor has 400 rooms. The average transient rate in March is S142. The variable room cost is $17 (per room). The Windsor is also paying a royalty fee of496 and a marketing fee of 3% of room revenue. A local university's business student alumni association plans a reunion. The group requests single rooms for $65 per room night, mcals, and other services for a 3-day event between March 6-8. The following is the group's request 03 80 Total 235 235 85 $600 The forecasted transient demand of the hotel for the days in question is as follows: This means that the hotel will have to displace some of the forecasted transient demand in order to accommodate the group. The displaced transient room nights for the first night will be 50 rooms (400-85-365 - 50); and for the second night is 40 rooms (400-80-360 40 The hotel's capture rate (% of transient guests purchasing a meal) and other relevant data per meal period for transient guests in March are as follows: cost The group meals have the same food costs per item as the transients but are sold at discounted price: cost 60 Beverage costs and prices are the same for group guests and transients. The average beverage price is S6.00 and the average beverage cost is 29%. The organizer believes that 70% of the group members will purchase one beverage per day. The beverage capture rate of transient guests is 40%. Grou Transicn S6 S6 29% 235 90 70% Please conduct a displacement analysis to determine whether confirming or rejecting the group
