KEY CONCEPT CASE STUDY "Hello Adrian? Have you read the paper today?" asked Damario, the revenue manager at the 480 am Barcena Resort as he spoke into his cell phone. It was 9:00 ...and Damari hadis placed a call to Adrian's office, "You've got to be kidding met replied Adrian the Barcera Resort's rooms manager. "Who's 206 CHAPTER FORECASTING OLMAND "Well, we certainly do more with charter mights than transient oriented fights like InterContinental's, but if their rights are reduced by 20 percent for half the year? lott" said Adrian "Let's get together to talk about this," said Damaria 'on my way,' said Adrian, as he hung up the phone As he walked to Damarlo's office, Adrian tried to assess the impact of InterContinental's decision. It would affect the number of rooms sold to the type of clients arriving on InterContinental, that was for sure. And also the room types requested. And the start of the third quarter was only 30 days away. No doubt, this was big news! got time to read the local paper? I can barely get through my emails" "Well, there's an article in the Business section that I think we need to talk about." said Damario. "I know I'm pretty new here, but I think this will really affects "What is it? asked Adrian "I have a hard time beleving that anything happening locally will affect us Our guests all flyin. As a resort located on a Caribbean island most of the hotel's were vacationing Americans, Canadians, South Americans, or Europeans.coming other in charter groups or as individual travelers That's just it. The articles about InterContinental Airlines. It says that due to higher fuel costs and stackening demand, it will be reducing the number of fights to our island by 20 percent starting in the third quarter of this fiscal year Damano paused and let Adrian consider what he had just said. That could be really bad said Adrian, as he recognized the importance of the information "I bet InterContinental currently has 20 to 30 every weekend. "Most of the InterContinental lights are scheduled to arrive Thursday and Friday. right?" asked Damarlo Rigtitrepied Adrian, The rivals are mostly couples, mostly two to three night stays, mostly requests for Wingbedded rooms. We already have tons of reservations for the third quarter. Some of those must be on InterContinental Airlines flights. What will happen to those? "The article says flyers with previous reservations will be contacted to be rescheduled on different fight or to get a refund. How many rooms do you think will be affected?" asked Damario For Your Consideration What impact will the reduction of the number of lights to the Barcena's island likely have on the previous demand forecasts that have been created by the resort's revenue management team? 2. What specific istorical data would be helpful to them as the RM team evaluates the potential impact of the airline's decision? 3. What specific current dat would be help ful to them as the AM team evaluates the potential impact of the airline's decision? 4. In this scenario, the number of potential guests delivered to this destination by this air carrier will likely be reduced. if that is so, what impact would significantly reduce ing room prices in an effort to stimulate demand likely have on the resort's third and fourth quarter RevPAR performance? Explain your answer KEY CONCEPT CASE STUDY "Hello Adrian? Have you read the paper today?" asked Damario, the revenue manager at the 480 am Barcena Resort as he spoke into his cell phone. It was 9:00 ...and Damari hadis placed a call to Adrian's office, "You've got to be kidding met replied Adrian the Barcera Resort's rooms manager. "Who's 206 CHAPTER FORECASTING OLMAND "Well, we certainly do more with charter mights than transient oriented fights like InterContinental's, but if their rights are reduced by 20 percent for half the year? lott" said Adrian "Let's get together to talk about this," said Damaria 'on my way,' said Adrian, as he hung up the phone As he walked to Damarlo's office, Adrian tried to assess the impact of InterContinental's decision. It would affect the number of rooms sold to the type of clients arriving on InterContinental, that was for sure. And also the room types requested. And the start of the third quarter was only 30 days away. No doubt, this was big news! got time to read the local paper? I can barely get through my emails" "Well, there's an article in the Business section that I think we need to talk about." said Damario. "I know I'm pretty new here, but I think this will really affects "What is it? asked Adrian "I have a hard time beleving that anything happening locally will affect us Our guests all flyin. As a resort located on a Caribbean island most of the hotel's were vacationing Americans, Canadians, South Americans, or Europeans.coming other in charter groups or as individual travelers That's just it. The articles about InterContinental Airlines. It says that due to higher fuel costs and stackening demand, it will be reducing the number of fights to our island by 20 percent starting in the third quarter of this fiscal year Damano paused and let Adrian consider what he had just said. That could be really bad said Adrian, as he recognized the importance of the information "I bet InterContinental currently has 20 to 30 every weekend. "Most of the InterContinental lights are scheduled to arrive Thursday and Friday. right?" asked Damarlo Rigtitrepied Adrian, The rivals are mostly couples, mostly two to three night stays, mostly requests for Wingbedded rooms. We already have tons of reservations for the third quarter. Some of those must be on InterContinental Airlines flights. What will happen to those? "The article says flyers with previous reservations will be contacted to be rescheduled on different fight or to get a refund. How many rooms do you think will be affected?" asked Damario For Your Consideration What impact will the reduction of the number of lights to the Barcena's island likely have on the previous demand forecasts that have been created by the resort's revenue management team? 2. What specific istorical data would be helpful to them as the RM team evaluates the potential impact of the airline's decision? 3. What specific current dat would be help ful to them as the AM team evaluates the potential impact of the airline's decision? 4. In this scenario, the number of potential guests delivered to this destination by this air carrier will likely be reduced. if that is so, what impact would significantly reduce ing room prices in an effort to stimulate demand likely have on the resort's third and fourth quarter RevPAR performance? Explain your