Question: Question: In this STAR Report Case Study, what changes are needed to increase revenues based on the results and comments and provide recommendations for the
Question: In this STAR Report Case Study, what changes are needed to increase revenues based on the results and comments and provide recommendations for the opening hours, the pricing and any operational processes you believe should change for this year.
Last year, your hotel started to have igloos on the terrace of the restaurant in December and January. It was very popular but your General manager thinks there are opportunities to optimize revenues this year. He gave you some key numbers from last years performance and the feedback from the team. He also gave you the opening hours from last year and would like for you to provide recommendations for this year that would help maximize revenues. The hotel had 6 igloos last year and the General Manager believes we should keep 6 igloos for this year as well.




Resource 1: last year's opening hours and pricing Monday through Thursday Opening Hours Reservation Fee Early bird: 4PM - 6PM $100 Prime time: 6PM-8PM $200 Late owl: 8PM-10PM $200 Friday through Sunday Opening Hours Reservation Fee Early bird: 4PM - 6PM $150 Prime time: 6PM-8PM $250 Late owl: 8PM-10PM $250 Resource 2: Last year's results Average Reservation Fee per igloo Average F&B spend per igloo Average Spend per igloo $50 $150 $100 $75 $90 $60 $125 $240 $160 $80 $190 $190 $83 $99 $66 $163 $289 $256 $80 $200 $180 $91 $109 $73 $171 $309 $253 Monday Early Bird Prime time Late owl Tuesday Early Bird Prime time Late owl Wednesday Early Bird Prime time Late owl Thursday Early Bird Prime time Late owl Friday Early Bird Prime time Late owl Saturday Early Bird Prime time Late owl Sunday Early Bird Prime time Late owl $80 $200 $180 $100 $120 $80 $180 $320 $260 $100 $250 $250 $110 $126 $88 $210 $376 $338 $120 $250 $250 $113 $125 $92 $233 $375 $342 $80 $200 $150 $83 $99 $66 $ 163 $299 $216 Average number of igloos sold Average igloo occupancy Average total revenue 1 3 17% 50% 33% $125 $720 $320 2 2 5 33% 83% 67% $325 $1,445 $1,024 4 2 5 33% 83% 83% $342 $1,545 $1,263 5 3 Monday Early Bird Prime time Late owl Tuesday Early Bird Prime time Late owl Wednesday Early Bird Prime time Late owl Thursday Early Bird Prime time Late owl Friday Early Bird Prime time Late owl Saturday Early Bird Prime time Late owl Sunday Early Bird Prime time Late owl 6 50% 100% 83% $539 $1,919 $1,299 5 3 6 50% 100% 83% $629 $2,255 $1,689 5 5 6 83% 100% 100% $1,166 $2,247 $2,053 6 3 5 2 50% 83% 33% $488 $1,495 $432 Igloos sold Occupied igloos Total Revenue Average Revenue per igloo $299.8 $255.4 December January 378 294 68% 53% $113,324 $75,088 Resource 3: Feedback from the team Director of F&B "We had many guests complain when it comes to service, especially on the second and third shift. All guests were coming in at the same time and ordered their drinks and food. As each igloo could seat 6 guests, it sometimes meant 36 guests ordering at the same time... It was difficult for the bar and the kitchen to be prompt with service" Reservation agent "We ended up waiving the reservation fees often for the "early bird" shift. Nobody wanted to pay for it at that time..." Director of F&B:"I think we accepted too many parties of 2 in our igloos on Friday and Saturday when we could have had parties of 4 or 6 who would spend more" Director of Sales: "I think we could have captured room nights and more revenues if we had allowed groups to reserve the igloos for a private event" Reservation agent: "It was very annoying, Fridays and Saturdays were so popular for the Prime Time and Late owl that we were selling out in no time. And then I had to deal with so many guests who were upset I did not have any availability for these times and days