Hotel Sport is a 250-room independent suburban hotel located close to a sports stadium. The stadium...

 

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Hotel Sport is a 250-room independent suburban hotel located close to a sports stadium. The stadium has a capacity of 25,000 and it serves as the home field of the local Major League Soccer (MLS) team, while also hosting college football games on occasion. Hotel Sport is a select service property in the midscale category. Its rate structure is simple: Rack Weekend $190 $159 $140 $130 $120 Low season/Government Groups (of 15+) BAR Late August is traditionally low season in the hotel. Demand usually picks up after Labor Day, when area businesses and government offices are back in full swing. The hotel has more group business during the summer and it faces less transient demand. The sell rate in late August is the $140 Low Season rate. In our mini-case we consider handling reservation calls on two consecutive days: on July 29 and then on July 30. On both these days we will deal with bookings for the same late August weekend. For the weekend of August 24-26 the forecasted occupancy is around 130 rooms. Reservations on the book are ninety guaranteed and twenty-five non-guaranteed reservations, plus the hotel expects fifteen walk-ins. There is no indication of any special demand drivers for late August when July 29 arrives. Question 1 On July 29: What rate should the revenue manager approve to quote for reservation inquiries for the weekend of August 24-26 based on the information above? Question 2 On July 30: There is exciting news: the Major League Soccer franchise of the city has just clinched a spot in the playoffs. The news travels fast: it is all over the sport shows on television, it is the headline news on the sports pages in all local papers, and it is all over the internet. The first game in the elimination round will be against the Los Angeles Galaxy, which features the world-famous superstar Steven Gerrard in its lineup. The first leg of the home-and-home series is going to be played in the local stadium on August 25. All the hotels in city are filling up fast and phones with reservation inquiries are ringing off the hook at the Sport. The hotel's website has crashed as the booking engine could not handle the sudden increase of volume. Things became hectic in a matter of hours at the Hotel Sport. What rate should the revenue manager approve to quote now for group reservation inquiries for the weekend of August 24-26? Are there any stay control measures that should be considered? Hotel Sport is a 250-room independent suburban hotel located close to a sports stadium. The stadium has a capacity of 25,000 and it serves as the home field of the local Major League Soccer (MLS) team, while also hosting college football games on occasion. Hotel Sport is a select service property in the midscale category. Its rate structure is simple: Rack Weekend $190 $159 $140 $130 $120 Low season/Government Groups (of 15+) BAR Late August is traditionally low season in the hotel. Demand usually picks up after Labor Day, when area businesses and government offices are back in full swing. The hotel has more group business during the summer and it faces less transient demand. The sell rate in late August is the $140 Low Season rate. In our mini-case we consider handling reservation calls on two consecutive days: on July 29 and then on July 30. On both these days we will deal with bookings for the same late August weekend. For the weekend of August 24-26 the forecasted occupancy is around 130 rooms. Reservations on the book are ninety guaranteed and twenty-five non-guaranteed reservations, plus the hotel expects fifteen walk-ins. There is no indication of any special demand drivers for late August when July 29 arrives. Question 1 On July 29: What rate should the revenue manager approve to quote for reservation inquiries for the weekend of August 24-26 based on the information above? Question 2 On July 30: There is exciting news: the Major League Soccer franchise of the city has just clinched a spot in the playoffs. The news travels fast: it is all over the sport shows on television, it is the headline news on the sports pages in all local papers, and it is all over the internet. The first game in the elimination round will be against the Los Angeles Galaxy, which features the world-famous superstar Steven Gerrard in its lineup. The first leg of the home-and-home series is going to be played in the local stadium on August 25. All the hotels in city are filling up fast and phones with reservation inquiries are ringing off the hook at the Sport. The hotel's website has crashed as the booking engine could not handle the sudden increase of volume. Things became hectic in a matter of hours at the Hotel Sport. What rate should the revenue manager approve to quote now for group reservation inquiries for the weekend of August 24-26? Are there any stay control measures that should be considered?

Answer rating: 100% (QA)

Question 1 On July 29 the revenue manager should approve the Low Season rate of 140 to quote for reservation inquiries for the weekend of August 2426 ... View the full answer