$21$:$42104$

$19\%$

Lecture $7$ Overbooking and channel management$\_6528$bd$6$d$83$a$2384$e$7$a$42$e$6$ab$4393$df$46$

$\backslash$table$[[$Date$,$Thursday,Friday,Saturday$],[$Reserved rooms,,,$],[\backslash$table$[[$Firefighters$\text{'}$ room sold @$],[$$$99/$night$]],90,90,90],[$All other rooms @ $$149/$night$,55,35,45],[$Total reserved,$145,125,135],[$Total rooms available,$30,$Under Latisha's Plan,$40],[$Under Mark's Plan,,,$]]*$ Missy Smith is the revenue manager at the Hampton Inn. Mark is the property's FOM and Latisha is the DOSM. All three serve on the hotel's RM committee. The hotel has $175$ rooms.

$*$Next month the hotel will serve as the host hotel for the Retired Firefighters Association. The Association originally blocked $90$ rooms per night for Thursday, Friday, and Saturday nights at a rate of $$99\mathrm{.}00$ per night. All the rooms in their block have been picked up$.$ The current rooms availability forecast for three days of the meeting is as follows:

$$ The group has requested that Latisha add $20$ rooms each night to its block at the originally contracted rate of $$99\mathrm{.}00.$ It states that its members will use all of the additional rooms if they are made available, but if not, they will move their remaining $20$ attendees down the street to the Comfort Inn. Latisha is in favor of increasing the blook and keeping the group together.

Mark is opposed. He is convinced he can sell $20$ more rooms on Thursday$40$ rooms on Friday, and $30$ rooms on Saturday at the normal rack rate of $$149\mathrm{.}99.$ Under his plan, he states,

$$ "The hotel can maximize its ADR."

$$ Based on Mark's estimate of future sales to be made at rack rate, Missy knows the hotel will sell out and maximize its occupancy $\%$ under Latisha's plan. Help Missy analyze the data she needs to answer the questions that follow by filling in the chart she has prepared Please complete the form according to the question and provide a detailed explanation. Also, how is Room Available $525$ calculated?