$$Please repeat to me what the situation is$,$ asked Barbara, the Front Office Manager of the $430-$room Clementine Hotel.

Gordon replied, $$In April of last year, our RevPAR was $$97\mathrm{.}09,$ with a $73\%$ occupancy and a $$133\mathrm{.}00$ rate.$$

$$Well$,$ it$$s the morning of April $28$th right now, so tell me what our numbers are as of the end of yesterday$$ asked Barbara.

$$As of last night, we stand at a $72\%$ occupancy and $$138\mathrm{.}00$ ADR, which means our RevPAR is at $$99\mathrm{.}36$ said Gordon.

$$I hope you realize that we were budgeted for a $3\mathrm{.}50\%$ RevPAR increase?$$ asked Barbara.

Gordon replied, $$Yes$,$ but unfortunately we are only at a $2\mathrm{.}34\%$ increase now. As you know, we need to meet or exceed that target in order to earn our much desired bonus.$$

$$That$$s for sure. Now tell me again what the booking agent told you when he phoned you ten minutes ago, it sounded like an opportunity worth considering?$$ asked Barbara.

Gordon replied, $$He said that $120$ of his clients need accommodation on an emergency basis. They were booked at a hotel three blocks from here, but unfortunately there was a serious mistake in booking their rooms and the rooms they booked are occupied by other guests. He is very upset, but is currently phoning different hotels to find alternate accommodation for his clients.$$

$$That could be a good opportunity for us$.$ What details did he provide?$$ asked Barbara.

$$He wants to book all of his clients for all three days, beginning this evening. He said that his budget allows him to spend only $$63\mathrm{.}00$ per room per night. If we accept those terms, we would be sold out for the remaining three days of this month,$$ said Gordon.

$$Hmm$,$ interesting, but I don$$t know. Let$$s crunch some numbers and figure this out quickly before he books them with another hotel.$$ said Barbara.

a$)$ Assume that if the agent$$s offer is accepted by Barbara, not only will the hotel sell those rooms that the agent wants at the reduced rate, but they$$ll also be able to sell all of the remaining rooms on all three nights at the ADR that the hotel is currently averaging during April. Therefore, on those final three nights, the hotel will be fully booked. If Barbara accepts this deal, will the hotel reach the RevPAR level necessary for them to earn their bonus? Clearly show in detail all the calculations you completed to arrive at your answer.

b$)$ If the RevPAR falls short of what is needed to earn the bonus, we will assume that Barbara would reject the offer; in that case, calculate the minimum amount per room that would be accepted from the agent in order to earn the bonus? On the other hand, if the RevPAR is sufficient to earn the bonus, should Barbara still accept this offer?

Explain fully why Barbara should or should not accept the offer if the RevPAR is actually enough to earn the bonus.

You should also include a discussion of various qualitative aspects of the decision$-$making process.

Problem #$2$: $(7$ marks$)$

Priyanka operates an upscale Italian$-$style restaurant called Priyanka$$s Trattoria, which is open daily between $11$:$00$ a$.$m$.$ and $3$:$00$ p$.$m$.$ for lunch and between $5$:$00$ p$.$m$.$ and $10$:$00$ p$.$m$.$ for dinner. It is closed between $3$:$00$ p$.$m$.$ and $5$:$00$ p$.$m$.$ Below is a table showing data collected from business generated yesterday.

As shown in the table, for lunch it offers dining through its usual available seats, but for the busy dinner meal period it provides additional seating in an adjacent banquet hall.

$\backslash$table$[[$Group #$3],[$Lunch$,\backslash$table$[[$Available$],[$Seats$]],\backslash$table$[[$Guests$],[$Served$]],$Revenue,RevPASH$],[11$a$.$m$.-12$p$.$m$.,90,52,$$$860,],[12-1$ p$.$m$.,90,150,3,100,],[1-2$ p$.$m$.,90,40,1,610,],[2-3$ p$.$m$.,90,35,550,],[5-6$ p$.$m$.,150,60,1,350,],[6-7$ p$.$m$.,150,170,5,100,],[7-8$ p$.$m$.,150,155,4,000,],[8-9$ p$.$m$.,150,115,2,900,],[9-10$ p$.$m$.,150,85,2,050,],[$Total$,,,,],[$Utilization $\%,,,,],[$Check Average,,,,$]]($table is given as below as image$)$

a$)$ Complete the table above by entering the correct values in the empty cells.

b$)$ Calculate yesterday$$s lunchtime RevPASH.

c$)$ Calculate yesterday$$s dinnertime RevPASH.

d$)$ Calculate yesterday$$s lunchtime seat utilization and check average.

e$)$ Calculate yesterday$$s dinnertime seat utilization and check average.

f$)$ Based on the above calculations, what would you suggest to Priyanka in order to enhance RevPESH during:

a$.$ lunchtime

b$.$ dinnertime