Question
Poco Miller is the RM at the Hampton Inn. Mark is the propertys FOM and Latisha is the DOSM. All three serve on the hotels
Poco Miller is the RM at the Hampton Inn. Mark is the propertys FOM and Latisha is the DOSM. All three serve on the hotels RM committee. The hotel has 200 rooms. Next month the hotel will serve as the host hotel for the Retired Firefighters Association. The Association originally blocked 100 rooms per night for Thursday, Friday, and Saturday nights at a rate of $99.00 per night. All the rooms in their block have been picked up. The current rooms availability forecast for the three days of the meeting is as follows:
Date: | Thursday | Friday | Saturday |
Reserved | |||
Firefighters rooms @ $ 99.00/night | 100 | 100 | 100 |
All Other rooms @ $129.99/night | 55 | 35 | 45 |
Total Reserved | 155 | 135 | 145 |
Total Rooms Available | 45 | 65 | 55 |
The group has requested that Latisha add 30 rooms each night to its block at the originally contracted rate of $99.00. It states that its members will use all of the additional rooms if they are made available, but if not, they will move their remaining 30 attendees down the street to the Comfort Inn. Latisha is in favor of increasing the block and keeping the group together. Mark is opposed. He is convinced he can sell 20 more rooms on Thursday, 40 rooms on Friday, and 30 rooms on Saturday at the normal rack rate of $129.99. Under his plan, he states, The hotel can maximize its ADR.
Based on Marks estimate of future sales to be made at rack rate, Poco knows the hotel will sell out and maximize its occupancy percentage under Latishas plan. Help Poco analyze the data she needs to answers the questions that follow by filling in the chart.
Under Latishas Plan | Under Marks Plan | |
Rooms sold | ||
Group revenue | ||
Transient revenue | ||
Total revenue | ||
Occupancy % | ||
ADR | ||
RevPAR |
A. What would the hotels ADR be under Marks plan? B. What would the hotels RevPAR be under Marks plan? C. What would the hotels ADR be under Latishas plan? D. What would the hotels RevPAR be under Latishas plan? E. Whos plan would you advise Poco to support? Explain your rationale.
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