Question
Watson Walbert is on the corporate RM team for the Sunbird Hotel Corporation. Sunbirdis the franchisor for Red Robin and Falcon hotels. Part of Watsons
Watson Walbert is on the corporate RM team for the Sunbird Hotel Corporation. Sunbirdis the franchisor for Red Robin and Falcon hotels. Part of Watsons job is evaluating revenueand Net ADR Yields for the distribution channels used by the company franchisees. Sunbirdcharges its franchised hotels a total of 5 percent of gross room revenue for each room salemade. Additional fees (listed as a percentage of ADR) that are assessed for each distributionchannel are presented in the following table. Calculate the information required to completethe chart Watson is working on and then answer the questions that follow
Channel | ADR | Total Fees: 5% franchisor fee PLUS an additional; | Total Franchisor Fee | Net ADR | Net ADR Yield |
Third-party websites | $166.54 | 27% | |||
Franchisor website | $229.99 | 7% | |||
Proprietary website | $239.99 | 5% | |||
Travel agent | $209.59 | 11% |
FOR TOTAL FRANCHISOR FEE *** I am looking for the $ amount fee not the % so it would be (.27 + .05) * $166.54****
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