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You are the Revenue Manager of the 200 room Piermont Hotel. The hotel has five different room types, each with a BAR rate that
You are the Revenue Manager of the 200 room Piermont Hotel. The hotel has five different room types, each with a BAR rate that reflects the product value. You know you cannot "upsell" guests who have reserved your highest rated rooms; however, you feel there is good potential to increase revenues through upsells to guests who previously reserved one of the lower rated room types. You create an incentive program that if achieved will reward each of your eight front desk clerks $100.00 a week. a) At the end of the first week, the team was successful in upselling one out of every ten guests arriving at the hotel. Calculate the change in revenue, ADR, and ReyPar.(note in class in class I did not show ADR and RexPar numbers. But you should know how to do this. We only need total ADR and total RexPar before and after the upsell program. You don't need ADR and RexPar per room type) then answer the questions below: Room Type Superior Parlor Suite Parlor Suite Jr. Parlor Suite Deluxe Room Standard Rm. Total Nights BAR Rate $289.99 $239.99 $219.99 $149.99 $119.99 Room Nights Reserved 75 100 125 250 450 1,000 I a) At the end of the first week, the team was successful in upselling one out of every ten guests arriving at the hotel. Calculate the change in revenue, ADR, and ReyPar (note in class in class I did not show ADR and RexPar numbers. But you should know how to do this. We only need total ADR and total RexPar before and after the upsell program. You don't need ADR and RexPar per room type) then answer the questions below: Room Type BAR Rate Superior Parlor Suite Parlor Suite Jr. Parlor Suite Deluxe Room Standard Rm Total Nights $289.99 $239.99 $219.99 $149.99 $119.99 Room Nights Reserved 75 100 125 250 450 1,000 I b) What was the percentage increase in revenue growth (rounded to one decimal place) as a result of the program? c) Assume this first week represents the average week for the upsell program. What would the hotel's 52-week revenue increase be as a result of implementing the program? d) What would the "net" profit from the program be?
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