Keith is the group sales manager at the 400-room full-service Tripletree Hotel. Carla is the front office manager. Together with Leona, the GM, they make the revenue management decisions for their property. For the Saturday night that is just one week away, they have 180 unsold rooms remaining. Keith would like to accept an available group contract for the entire 180 rooms. Well sell out, he proclaims, and have a great RevPAR. Carla would like to reduce the room rates to $159.00 per night; which is a $20.00 reduction from the hotels normal rate of $179.00. How many rooms do you forecast we can sell at that rate? asks Leona. I believe we can sell about 120 of them, is Carlas reply. That means well leave 60 empty rooms, and a lower RevPAR, protests Keith. It costs $35.00 to prepare, sell, and clean (prepare for resale) a room at the Tripletree.

Room Sold	ADR	RevPAR	GOPPAR
Keiths Plan
220	$179.00	$	$
180	$109.00	$	$
Total	$	$
Carlas Plan
220	$179.00	$	$
120	$159.00	$	$
Total	$	$

Review the data and then answer the following questions:a. What will be the hotels occupancy % under each of the plans? b. What will be the hotels ADR under each of the plans? c. What will be the hotels RevPAR under each of the plans? d. What will be the hotels GOPPAR under each of the plans? e. If you were Leona, whose plan would you support? f. The Tripletree is a full-service hotel. Would your position change if the hotel were a limited-service property? Explain your answers.