Question: from the case study below please give the calculation in detail with explaination for Rate parity and positioning, Distribution costs, Conversion to Brand.com, Service levels,
from the case study below please give the calculation in detail with explaination for Rate parity and positioning, Distribution costs, Conversion to Brand.com, Service levels, ADR vs. RevPAR calculate RevPar, ADR, cost per occupied room, etc
Mindy Lee was a software engineer who worked for a company that is known for its inventory management software suite. She specialized in designing interfaces that help a business migrate its inventory data to cloud computing. Mindy has loved the Internet since her school years; she used email and browsers before any other kid in her class. She books all her travel arrangements online, including flights, car rentals and hotel rooms. Mindy has inherited money and invested in a small hotel, the Sunrise, a 140-room independent, limited service midscale property. She has 80% ownership and her silent partner owns the other 20%, allowing Mindy total control in operating decisions. The hotel has a lot of potential, as the area in which it is located is popular with tourists. There are two similar hotels nearby. Over the years, however, it has struggled to gain market share. The previous owner, an old hotelier, had refused to consider a franchise agreement, hoping to compete on service quality and reputation. The average annual occupancy at the Sunrise for the last two years was 40%. Mindy doesnt pretend to know how to run a hotels daily operations, but is convinced that she can boost sales by embracing OTAs to sell her rooms. She pins her high hopes on working with Expedia. After her first two quarters of being in charge, monthly occupancy is 67%-a significant improvement. Her ranking on Expedia has the hotel on the first page for guest searches. Overall hotel ADR however, has taken a beating, dropping from $130 (prior to the ownership change) to $100 due to Expedias 25% margin. As agreed with the Expedia Market Manager, the hotel is selling its rooms at a lower rate on Expedia vs. their own website (Sunrise.com), for additional exposure. Most rooms are now being booked on Expedia. Even regular guests no longer use the Sunrise website.
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