Question
Linda Sonnie is the RM at the 200-room Loews Annapolis Hotel. The hotel has five different room types, each with a rack rate that reflects
Linda Sonnie is the RM at the 200-room Loews Annapolis Hotel. The hotel has five different room types, each with a rack rate that reflects its guests view of each room types value. Linda knows she cannot upsell guests who stay in her highest rated rooms; however, she feels there is good potential to impact her hotels revenue performance via upsells to guests who originally reserved one of the four lower-priced room types. Linda created and implemented a comprehensive upsell training program for her hotels front desk. The cost of providing the upsell training to the hotels eight desk staff was $100.00 per employee. At the end of the first week of the programs implementation, Linda found that her clerks were successful at upselling approximately one of every ten guests arriving at the hotel. A summary of the hotels guest reservation/actual stay records is displayed here
Complete the summary for her and then provide Linda with answers she needs for the questions that follow.
Loews Annapolis Hotel Upsell Results: Week 1 | |||||
Room Type | Rack Rate | Nights Reserved | Reserved Revenue | Actual Night Usage | Actual Revenue |
Superior Parlor Suite | $299.99 | 75 |
| 75 |
|
Parlor Suite | $249.99 | 100 |
| 110 |
|
Jr. Parlor Suite | $219.99 | 125 |
| 140 |
|
Deluxe | $159.99 | 250 |
| 275 |
|
Standard | $109.99 | 450 |
| 400 |
|
Total Nights |
| 1000 |
| 1000 |
|
Total Revenue |
|
|
|
|
|
ADR |
|
|
|
|
|
Based on Lindas first week data:
A. What would the hotels ADR have been if all arriving guests had been assigned to their originally reserved rooms?
B. What was the ADR actually achieved by the hotel as the result of the upsell program?
C. What would the hotels revenue have been if all arriving guests had been assigned to their originally reserved rooms?
D. What was the revenue actually achieved by the hotel as the result of the upsell pro- gram?
E. What was the amount of the increased revenue that resulted from Lindas upsell program?
F. What was the percent increase (rounded to one decimal place) in revenue achieved by the hotel as a result of the program?
G. Assume this first week represents the typical week for the upsell program. What would the hotels 52-week revenue increase be as a result of implementing it?
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