Exercise 6.1 Based on the scenario to complete this hotel's March operating performance worksheet (28 points). Tom is the revenue manager at a 220-room hotel. For the low season of March (31 days in March), Tom decided to reduce the room rates this year by 10% (from ADR $129.99 to ADR $116.99) to help increase occupancy and improve the RevPAR. Tom's room rate deduction resulted in an upswing in occupancy, from 75% last March to 85% this March - an increase of 13.3%. Last March, the hotel's operating costs were $61 per sold room-night. This March, the operating costs rose to $62 per sold room-night. Fill in the blank cells (14*2 points=28 pionts): *Use formulas to get your results in each of the blank cells. Results without correct formulas will get 0 point. Statistics Last March This March Change in Dollars Change in % Occupancy % 75% 85% 13.3% Room-nights Sold in March ADR $129.99 $1 16.99 Rooms Revenue RevPAR Total Operating Costs Total Gross Operating Profit GOPPAR (formular for "Change in %": Change in dollars/GOPPAR Last March) Extra Bonus Question (up to 5 points) Help Tom better understand the overall results of his rate reduction strategy by comparing the Room Revenue, RevPAR and GOPPAR performance this March versus last March, how effective do you think about Tom's revenue strategy? (*Notice: revenue optimization is different from revenue maximization.)Exercise 6.2 Based on the scenario to analyze this hotel's distribution channel management performance (12 points). Riverside Hotel is an independent hotel. Last year, the hotel generated a total of $2 million in revenue from all distribution channels. Among all the channels, there are two major online channels: hotel's own website Brand.com and an OTA eStay.com. The revenue related performances of the two major channels last year are as follows. a. Brand.com, produced 2,000 room nights and $400,000 revenue. The yearly Standard ADR is $200 and distribution channel cost is $10 per room night. b. eStay.com, produced 2,000 room nights and $410,000 revenue. The yearly Standard ADR is $205 and distribution channel cost is $30 per room night. Fill in the blank cells (8*1.5 points=12 pionts): Distribution Channel Brand.com eStay.com Channel Production Channel Contribution Channel Contribution % Net ADR Yield Extra Bonus Question (up to 5 points) Should Riverside hotel continue working with eStay.com? Why