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Your first job is in hotel management and recently you were promoted to Hotel Manager for a large convention hotel in downtown New Orleans. Answer
Your first job is in hotel management and recently you were promoted to Hotel Manager for a large convention hotel in downtown New Orleans. Answer the following questions given the information below for one day. What is the total contribution to profit and overhead? What is your hotel effectiveness percentage?
Characteristic/Variable | Business Hotel Customers (B) | Convention Association Hotel Customers (C) |
Customers for this day (D) | 280 room nights rented (DB) | 400 room nights rented (DC) |
Average price/room night (P) | $100 (PB) | $75 (PC) |
Variable cost/room night (VC) | $25 | $25 |
Maximum price/room night (called the rack rate) | $150 | $110 |
Maximum number of rooms available for sale this day | 300 room nights available | $700 room nights available |
What are the following measurements?
- Contribution to Profit and Overhead
- Hotel Management Effectiveness
A. | $41,000, 46.2% | |
B. | $51,000, 47.5% | |
C. | $41,000, 47.5% | |
D. | $34,000, 29.6% | |
E. | $48,000, 56.2% |
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