Q4. Taylor Smith is the revenue director at the Hong Kong Central Place, a 580-room franchise hotel. Currently, 300 numbers of bookings have been obtained with the room rate at $3,375. She wants to evaluate alternative choices regarding the allocation of the 280 unsold rooms for the next week. The hotels marketing team has a plan to push the Special Deals promotion on the franchisor website with 20 percent discount of the current rank rate of $3,375, aiming to sell 230 rooms. On the other hand, her property sales department team trusts that it can sell 220 group rooms for that date at a rate of $2540 per room. Finally, Vacationdays.com (OTA) is willing to purchase from the hotel for $2,300 for each room and sell all 280 rooms.

1) Based on the best estimate of each distribution channels performance and show your calculation:

a) Which chancel would produce the highest ADR?

b) Which chancel would produce the lowest ADR?

c) Which chancel would produce the highest occupancy percentage?

d) Which chancel would produce the lowest occupancy percentage?

e) Which chancel would produce the highest RevPAR?

f) Which chancel would produce the lowest RevPAR?

Please Answer the following question:

2) Assume that the transaction costs associated with selling each room are 5% for group sales, $150 for CRS sales, and 20% for the OTA. After considering the transaction cost, if you were Taylor, to which distribution channel would you allocate the 280 rooms? Why?