In-class exercise Displacement Analysis 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 management fee of 4% and a marketing fee of 3% of room revene buch). A local university's business student alumni association plans a reunion. The group requests single rooms for $65 per room night, meals (breakfast S10, lunch S24. dinner $32), and other services for a 3-day event between March 6-8 The following is the group's request: . . The forecasted occupancy 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. 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 Brod Thr The group meals have the same food costs per item as the transients but are sold at discounted price: Meal Price Todo Kraft Landhu 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%. QI: What is the displaced transient room nights for three days (March 6th to 8th)? Q2: Conduct a displacement analysis to determine whether confirming or rejecting the group request. In-class exercise Displacement Analysis 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 management fee of 4% and a marketing fee of 3% of room revene buch). A local university's business student alumni association plans a reunion. The group requests single rooms for $65 per room night, meals (breakfast S10, lunch S24. dinner $32), and other services for a 3-day event between March 6-8 The following is the group's request: . . The forecasted occupancy 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. 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 Brod Thr The group meals have the same food costs per item as the transients but are sold at discounted price: Meal Price Todo Kraft Landhu 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%. QI: What is the displaced transient room nights for three days (March 6th to 8th)? Q2: Conduct a displacement analysis to determine whether confirming or rejecting the group request
