ane is the DOSM at the $550-$room, full$-$service $(3\mathrm{.}5-$Star$)$ Hotel, which has been operated over

$20$ years in a metropolitan city in Ohio. John is the Room Manager responsible for the front

desk and housekeeping. At the Monday Sales Meeting with Alex, the GM$,$ they make the

revenue management decisions for their hotel.

For the Saturday night of this week, they have $250$ unsold rooms remaining. Jane would like to

accept the last$-$minute group contract from one of her corporate customers for the entire $250$

rooms at $$115\mathrm{.}00.$ She$$d like to sell out, and proclaims that this group contract would help

achieve a great RevPAR. John would like to reduce the room rates to $$159\mathrm{.}00$ per night, which is

a $$40\mathrm{.}00$ reduction from the hotel$$s normal rate of $$199\mathrm{.}00.$ He believes the hotel can sell about

two thirds of those remaining $200$ rooms. That means the hotel will have $67$ empty rooms, and

a lower RevPAR, according to Jane. It costs $$45\mathrm{.}00$ to prepare, sell, and clean $($prepare for

resale$)$ a room at the Ohio hotel.

Answer questions below.

$1.$ What will be the hotel$$s occupancy $\%$ under each plan?

$2.$ What will be the hotel$$s ADR under each plan?

$3.$ What will be the hotel$$s total revenue and RevPAR under each plan?

$4.$ What will be the hotel$$s controlled expenses $($variable costs$)$ under each plan?

$5.$ What will be the hotel$$s GOPPAR under each plan?

$6.$ If you were Alex, whose plan would you support? Make sure to support your suggestion.

$7.$ Let$$s assume that this full$-$service hotel has a variety of in$-$room and in$-$property

services, restaurant, spa, arcade, food court, shopping stop, and etc. By adopting the the

two$-$tiered pricing, GM has been actively promoting the sale of these services. Would

your position remain same or change from your answer in $6?$ Make sure to support your

idea.

$8.$ Let$$s assume that this is limited$-$service hotel which has just launched January this year.

Would your position change from your answer in $6?$ Make sure to support your idea