Read the following case study, $$Comparing Apples and Oranges: Which Group Yields the Best Profit?$$ and conduct a displacement analysis determining who is the best group to acce

The Diamond Peak Hotel, one of $45$ hotels in the Carter Fox management company, was bustling with business this Thursday afternoon as the hour of the daily revenue meeting drew closer. For the second straight year, November was proving to be a busy month with a large number of transient business guests filling up every room not already claimed by a group. Indeed, the staff was busy checking out a fraternity group today and preparing for the arrival of a gymnastics team this evening.

Several members of the sales staff were eagerly anticipating the day$$s meeting, excited about the good news they were ready to share with the revenue management team of the $575-$room convention hotel.

Both of the hotel$$s group sales managers, Tyrell Glouchester and Demetrius Glava, scurried to pull together the data they needed to answer any questions that might come up concerning the group business they were on the verge of selling. Both knew that though the business was still $12$ months away, the sale would help put them closer to their yearly sales goals$$and the bonuses that came with the accomplishment of those goals.

At $4$:$30$ P$.$M$.,$ the revenue management team$$Bill McAddlepot, general manager; Ellen Zurpava, director of sales; the two group sales managers; Paramendra Bhura, sales manager for transient sales; Robin Douglas, the reservations manager; and Grace Fritzman, the catering manager$$gathered in the meeting room with friendly smiles and a few weary comments about the fraternity group that was currently checking out of the hotel.

Bill quickly called the meeting to order, reviewing the actual performance of the latest five$-$day forecast. After a brief discussion about the current budget, Bill asked what new business the team had generated today. Tyrell and Demetrius spoke up in unison, sparking a laugh among their co$-$workers as they then both offered to defer to the other.

Tyrell yielded the floor and Demetrius began, $$I received a call this morning from a Rev. Michael Brown. He$$s planning his denomination$$s annual minister$$s revival meeting and would like to book it at our hotel. They$$re looking for $400$ rooms for a four$-$day period from Monday through Thursday in the first week of next October. They would also want...$$

$$When did you say the group wanted the hotel?$$ Tyrell interrupted. $$The first week of next October, Monday through Thursday,$$ Demetrius said. $$I checked with Robin this morning$$so far the only group we have booked is the return of our fraternity buddies who are checking out today. They have $125$ rooms booked at $$130,$ higher than our budgeted group ADR of $$120$ for that month, which gives us a little bit of leeway.$$The fraternity group is a pretty firm bookings, too,$$ said Ellen. $$I was surprised to see that they actually ended up reserving more rooms than they had contracted for. Fortunately, we had the extra rooms for them this year.$$

Tyrell shot Robin a questioning look, but was unable to catch her eye as she seemed suddenly engrossed in one of the reports that Bill had handed out at the beginning of the meeting. He wasn$$t certain, but she seemed to be suppressing a smirk.

Demetrius continued, $$Other than a big dinner on the final night, the ministers will mostly use the hotel dining rooms and area restaurants for their food and beverage needs, which historically added $$8000$ per day for the first three days, and another $$4000$ on the Thursday, in F&B outlet revenue. However, they$$ll want to reserve all of our remaining available meeting rooms for the week and will be purchasing refreshment breaks on each day. The room rentals is $$1600$ per day and the Catering would run $$1200$ per day. I pulled their group history from our sister property in Minneapolis where they held their revival meetings for the past five years. Rev. Brown said they were looking for somewhere warmer for next year$$s meeting in the hopes of finding a permanent home for the annual meeting.

$$One of the more interesting aspects of their history is that they are $80$ percent multiple occupancy and they tend to pick up a lot of shoulder dates in early arrivals and late departures. Last year they picked up $50$ unrequested rooms on the previous Sunday night, a night that has typically been a slow one for us$."$Sounds like a great piece of business,$$ Ellen said. $$What rate did you quote them?$$

$$They are slightly price$-$sensitive$,$ Demetrius said. $$We ended up discussing a rate of $$109$ for double occupancy, $$99$ for single occupancy. The shoulder dates would be sold at the rate of $$109$ whether they were single or double occupancy.$$

$$Four hundred rooms, you said?$$ asked Bill. $$With the other group of $125,$ that would leave us $75$ rooms for the peak business days. Robin, what is our transient ADR budget for next October?$$October is a pretty easy month to forecast,$$ she answer