Scenario

You are the revenue manager for the South Side Suites, a $450-$room, busy downtown hotel. The month of March is historically a high$-$demand period. During your daily revenue management meeting you sit down with your team to discuss the upcoming busy period of the $3$rd week of March.

One of your team members, Raj, reminds everyone that the Mandalorian Madness Fan Group has booked $140$ rooms for $3$ nights with a Wednesday arrival date for the $3$rd week of March. This group is guaranteed and will be paying $$200$ per night, per room. They have arranged for a $$Star Wars themed$$ dinner on their last night and will be paying $$55$ per person for dinner that evening. The group expects $125$ guests to attend the dinner.

Another member of the revenue management team, Aliya, mentions that they have another potential group, Save the Tigers Wildlife Foundation, for the same week. This group would like to book for $5$ nights with a Monday arrival, and would like to book $300$ rooms. This group is price$-$sensitive and is willing to pay the group rate of $$150$ per night. Aliya mentions that this group will need $5$ meeting rooms for each day.

At this point, Elizabeth, another member of the team, mentions that they have a prospective group booking for the same week. The group Elizabeth has lined up$,$ Wacky Windsor$$s Royal Fan Club, is looking to book $100$ rooms for $4$ nights with a Wednesday arrival and is willing to pay $$210$ per room night. The group is also looking to have a formal banquet on Wednesday and Saturday for $100$ people and is willing to pay $$105$ per plate.

Knowing that your hotel cannot accommodate all $3$ groups during the week in question, you and the team decide to look at the expected transient business during that week. Your group has decided that you could expect the following transient business during the week in question:

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Expected Transient Room Sales $15$ Rooms $161$ rooms $13$ rooms $161$ rooms $213$ rooms $55$ Rooms $76$ Rooms

Rate $$190$ $$175$ $$195$ $$220$ $$225$ $$230$ $$245$

Some other information to help you make a decision:

Meeting Room Rate $-$ $$1,000$ per day

Meeting Room Variable Cost $10\%$

Variable Cost for Dinner or Banquet $26\%$

Required Questions:

$(10$ Marks$)$ Which group, if any, should the South Side Suites accept? Why? Include all calculations in your submission.Your analysis must be supported by financial calculations including:

Total revenue for each possible scenario calculated

Total occupancy for each possible scenario

ADR for each possible scenario

RevPar for Each Scenario