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Joel Liberman is the revenue manager at the City Center Plaza, a 3 0 0 - room franchised hotel. He is evaluating alternative options regarding
Joel Liberman is the revenue manager at the City Center Plaza, a room franchised hotel. He is evaluating alternative options regarding the allocation of unsold guest rooms for the third weekend of next month. His property's group room sales department believes but is not positive that it can sell group rooms for that date at a rate of $ per room. The hotel's FOM believes that, with no special promotion of any kind, the hotel will likely sell rooms at full rack rate of $ The FOM also believes that if the rooms are listed on the "Deals at This Hotel" page of the franchisoroperated property website, with a percent discount off the hotel's rack rate, rooms would likely sell through the CRS The sale would apply only to buyers willing to agree that the room would be billed to the guests at the time of purchase and could not be canceled.Uberhothotels.com, a thirdparty agency model operator, requires a percent commission and wants a commitment from the hotel that it would be able to buy and then resell up to rooms for that weekend. It believes it can sell all rooms if the hotel pays it an additional percent premium commission to be listed first on its website for the next days.Assume rooms have already sold at rack rate and that each distribution channel produces as projected. Complete the following revenue estimate report Joel has developed and then answer the questions that follow. A Based on his best estimates of each channel's performance: Which channel would produce the highest ADR? Which channel would produce the lowest ADR? B Based on his best estimates of each channel's performance: Which channel would generate the highest occupancy Which channel would generate the lowest occupancy C Based on his best estimates of each channel's performance: Which channel would generate the highest RevPAR? Which channel would generate the lowest RevPAR? D If you were Joel, to which channel would you allocate the rooms? Explain your answer?
Joel Liberman is the revenue manager at the City Center Plaza, a room franchised hotel. He is
evaluating alternative options regarding the allocation of unsold guest rooms for the third
weekend of next month. His property's group room sales department believes but is not positive that
it can sell group rooms for that date at a rate of $ per room. The hotel's FOM believes that,
with no special promotion of any kind, the hotel will likely sell rooms at full rack rate of $ The
FOM also believes that if the rooms are listed on the "Deals at This Hotel" page of the
franchisoroperated property website, with a percent discount off the hotel's rack rate, rooms
would likely sell through the CRS The sale would apply only to buyers willing to agree that the room
would be billed to the guests at the time of purchase and could not be
canceled.Uberhothotels.com, a
thirdparty agency model operator, requires a percent commission and wants a commitment from
the hotel that it would be able to buy and then resell up to rooms for that weekend. It believes it
can sell all rooms if the hotel pays it an additional percent premium commission to be listed first
on its website for the next days.Assume rooms have already sold at rack rate and that each
distribution channel produces as projected. Complete the following revenue estimate report Joel has
developed and then answer the questions that follow.
A Based on his best estimates of each channel's performance:
Which channel would produce the highest ADR?
Which channel would produce the lowest ADR?
B Based on his best estimates of each channel's performance:
Which channel would generate the highest occupancy
Which channel would generate the lowest occupancy
C Based on his best estimates of each channel's performance:
Which channel would generate the highest RevPAR?
Which channel would generate the lowest RevPAR?
D If you were Joel, to which channel would you allocate the rooms? Explain your answer?
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