Question
The Accra Beach Hotel is located on the south coast of Barbadosa popular destination during the spring months. The hotel is considering a request from
The Accra Beach Hotel is located on the south coast of Barbadosa popular destination during the spring months. The hotel is considering a request from the West Indies Cricket Board (WICB) for 50 rooms during the entire West Indies Cricket Seriesa total of 28 daysin the spring of next year.The series occurs over a period that is typically quite busy for the hotel. The group is asking for a discounted rate of just $130 per night for 50 rooms. In addition, the group has requested free laundry every day.
The hotel has 140 rooms with a variable cost per room of $20. The sales director has estimated the average daily rate for the requested time of year to be $142.00. Finally, the sales director estimates that the laundry service will cost the hotel $20 per day.
Would it make sense for the Accra Beach to reserve rooms for this group at a reduced rate? Work through the following questions to find out.
Dates | Forecast |
24-Apr | 140 |
25-Apr | 138 |
26-Apr | 131 |
27-Apr | 132 |
28-Apr | 120 |
29-Apr | 125 |
30-Apr | 140 |
01-May | 140 |
02-May | 140 |
03-May | 139 |
04-May | 102 |
05-May | 78 |
06-May | 85 |
07-May | 110 |
27-May | 96 |
28-May | 111 |
29-May | 111 |
30-May | 122 |
17-Jun | 121 |
18-Jun | 115 |
19-Jun | 109 |
20-Jun | 115 |
21-Jun | 122 |
22-Jun | 113 |
23-Jun | 127 |
24-Jun | 141 |
25-Jun | 141 |
26-Jun | 120 |
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