Question: Complete the calculation and answer the related questions on: Overbooking Because of no-shows, and in order to sell-out your hotel, you decide to overbook, but

Complete the calculation and answer the related

Complete the calculation and answer the related questions on: Overbooking Because of no-shows, and in order to sell-out your hotel, you decide to overbook, but want to avoid frequent 'walks, because the average cost is $320. Your ADR is $150 and the variable cost per room is $25. Overbooking No-shows Rate O or more 100% 1 or more 80% 2 or more 60% 3 or more 40% 1. Calculate your overbooking ratio 2. Based on the no-show rate, how many rooms should you overbook 3. Suggest 2 procedures to reduce no-shows 4. Give one positive and one negative consequence to overbooking

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