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Displacement Analysis (14 points) The Winsor has 400 rooms. The average transient rate in March is $142. The variable room cost is $17 (per room).
Displacement Analysis (14 points) The Winsor has 400 rooms. The average transient rate in March is $142. The variable room cost is $17 (per room). The Windsor is also paying a royalty fee of 4% 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, meals, and other services for a 3-day event between March 6 - 8. The following is the group's request: Date Rooms Breakfast Lunch Dinner Meeting Toom 0 8 5 03/06 03707 03/08 Total 85 85 SORO 70 0 40 $300 $300 $600 215 215 The forecasted transient demand of the hotel for the days in question is as follows: 03/06 365 03/07 360 03/08 310 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: Meal Price Food cost Displaced transient guests Breakfast Lunch Dinner S12 S28 S40 S 3.60 $9.52 S12.80 T ransient meal capture % 70% 20% 40% 90 90 The group meals have the same food costs per item as the transients but are sold at discounted price: #of Group meals capture Meal Breakfast Lunch Dinner Price S10 S24 S32 F ood cost S3.60 S9.52 S1280 Beverage costs and prices are the same for group guests and transients. The average beverage price is 56,00 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% Beverage Group Transient Price S6 $6 Cost % 2 9% 29% of guests 235 90 Beverage capture % 70% 40% Please conduct a displacement analysis to determine whether confirming or rejecting the group request. Displacement Analysis (14 points) The Winsor has 400 rooms. The average transient rate in March is $142. The variable room cost is $17 (per room). The Windsor is also paying a royalty fee of 4% 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, meals, and other services for a 3-day event between March 6 - 8. The following is the group's request: Date Rooms Breakfast Lunch Dinner Meeting Toom 0 8 5 03/06 03707 03/08 Total 85 85 SORO 70 0 40 $300 $300 $600 215 215 The forecasted transient demand of the hotel for the days in question is as follows: 03/06 365 03/07 360 03/08 310 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: Meal Price Food cost Displaced transient guests Breakfast Lunch Dinner S12 S28 S40 S 3.60 $9.52 S12.80 T ransient meal capture % 70% 20% 40% 90 90 The group meals have the same food costs per item as the transients but are sold at discounted price: #of Group meals capture Meal Breakfast Lunch Dinner Price S10 S24 S32 F ood cost S3.60 S9.52 S1280 Beverage costs and prices are the same for group guests and transients. The average beverage price is 56,00 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% Beverage Group Transient Price S6 $6 Cost % 2 9% 29% of guests 235 90 Beverage capture % 70% 40% Please conduct a displacement analysis to determine whether confirming or rejecting the group request. Displacement Analysis (14 points) The Winsor has 400 rooms. The average transient rate in March is $142. The variable room cost is $17 (per room). The Windsor is also paying a royalty fee of 4% 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, meals, and other services for a 3-day event between March 6 - 8. The following is the group's request: Date Rooms Breakfast Lunch Dinner Meeting Toom 0 8 5 03/06 03707 03/08 Total 85 85 SORO 70 0 40 $300 $300 $600 215 215 The forecasted transient demand of the hotel for the days in question is as follows: 03/06 365 03/07 360 03/08 310 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: Meal Price Food cost Displaced transient guests Breakfast Lunch Dinner S12 S28 S40 S 3.60 $9.52 S12.80 T ransient meal capture % 70% 20% 40% 90 90 The group meals have the same food costs per item as the transients but are sold at discounted price: #of Group meals capture Meal Breakfast Lunch Dinner Price S10 S24 S32 F ood cost S3.60 S9.52 S1280 Beverage costs and prices are the same for group guests and transients. The average beverage price is 56,00 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% Beverage Group Transient Price S6 $6 Cost % 2 9% 29% of guests 235 90 Beverage capture % 70% 40% Please conduct a displacement analysis to determine whether confirming or rejecting the group request. Displacement Analysis (14 points) The Winsor has 400 rooms. The average transient rate in March is $142. The variable room cost is $17 (per room). The Windsor is also paying a royalty fee of 4% 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, meals, and other services for a 3-day event between March 6 - 8. The following is the group's request: Date Rooms Breakfast Lunch Dinner Meeting Toom 0 8 5 03/06 03707 03/08 Total 85 85 SORO 70 0 40 $300 $300 $600 215 215 The forecasted transient demand of the hotel for the days in question is as follows: 03/06 365 03/07 360 03/08 310 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: Meal Price Food cost Displaced transient guests Breakfast Lunch Dinner S12 S28 S40 S 3.60 $9.52 S12.80 T ransient meal capture % 70% 20% 40% 90 90 The group meals have the same food costs per item as the transients but are sold at discounted price: #of Group meals capture Meal Breakfast Lunch Dinner Price S10 S24 S32 F ood cost S3.60 S9.52 S1280 Beverage costs and prices are the same for group guests and transients. The average beverage price is 56,00 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% Beverage Group Transient Price S6 $6 Cost % 2 9% 29% of guests 235 90 Beverage capture % 70% 40% Please conduct a displacement analysis to determine whether confirming or rejecting the group request
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