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Section 4: Evaluation of Revenue Management Efforts in Lodging Joan Watson is the front office manager at the 125 room limited service Baker Street Inn.

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Section 4: Evaluation of Revenue Management Efforts in Lodging Joan Watson is the front office manager at the 125 room limited service Baker Street Inn. She also serves as the Inn's RM. Joan just received a call from Moriarity, a friend and the RM at a hotel within her comp set. Because of a clerical error, Moriarity's hotel is overbooked by 70 group rooms next Saturday, Moriarity would like to purchase that number of rooms from Joan at their previously agreed upon walk rate of $75. Joan's normal rack rate is $129. Currently she has 55 occupied rooms (arrivals and stayovers) on the books for could sel, at her normal ADR, another 30 days by Saturday. Complete the Source of Business worksheet and answer the questions that follow. that day. She estimates that she Source of Business Calculation Group Without With Moriarity Moriarity Walks Walks Rooms Sold ADR Total revenue estimate Daily per room ancillary revenue $129.00 $8.00 $8.00 Total ancillary revenue RevPOR Total revenue Revenue Variance Amount | % +14.6 A) What would Joan's ADR be if she accepted all of Moriarity's walked rooms? B) What would Joan's RevPor be with the walked rooms? C) What would Joan's RevPor be without the walked rooms? D) What would be the dollar difference in her hotel's total revenue if Joan agreed to take th rooms? E) If you were Joan, would you accept the walked rooms? Explain your

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