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SECNARIO: The Vineyard Hotel has 70 rooms, a beautiful restaurant and a conference room with a maximum capacity of 30 guests. The high season for
SECNARIO: The Vineyard Hotel has 70 rooms, a beautiful restaurant and a conference room with a maximum capacity of 30 guests. The high season for this hotel is during the summer, mostly driven by leisure transient travelers who are coming to Niagara. One of the busiest weekends in the year is the "Canada Day" long weekend and historically the hotel has had high occupancies during this weekend. The demand in the entire region is high during this weekend. The revenue manager has therefore forecasted to have an average ADR of $195 all driven by transient travelers. Normally the hotel has not taken any groups over this weekend, however this year the hotel received a group request from a Travel company called "Travel Fun". The Vineyard Hotel has received other groups from "Travel Fun" and this company has given the hotel bookings during low season as well. They are looking to book 21 rooms a night for 3 nights with a group rooms price of $125 per night per room. They are also looking for a breakfast S15 per person (3 mornings). They need a meeting room for 2 days at $350 a day HOTEL FACTS: $18 Transient Hotel Price & Cost for Food Net Revenue/ Transient Meal Price Food Cost % Food cost $ Margin capture % Breakfast 30% $5.40 $12.60 50% Total amount of group guest rooms: 63 (3:21) Total amount of group breakfast: 63-(3'21 - For this example we assume rooms are single occupancy Meeting Room (Other Revenue): $350 a day - need 2 days: $700 total Question 5 a. Calculate the total increase or decrease when accepting this group (2 point) Net Room Revenue Differential $ Net Food contribution differential $ Other Revenue contribution $ Total Increase/Decrease from Group $ b. According to the answers of Question 5 a., would you recommend the hotel to take this group NO
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