Scott Haner is the general manager at the City Center Plaza, a 300-room franchised hotel. He...

  

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Scott Haner is the general manager at the City Center Plaza, a 300-room franchised hotel. He is evaluating alternative options regarding the allocation of 100 unsold guest rooms for the third weekend of next month. His property's group room. The hotel's FOM believes that if the 100 rooms are listed on the "Deals at This Hotel" page of the franchisor room sales department believes (but is not positive) that it can sell 80 group rooms for that date at a rate of $165.00 per franchisor's CRS website. The sale would apply only to buyers willing to agree that the room would be billed to the guests operated website, with a 20% discount off the hotel's normal $229.99 rack rate, 90 rooms could sell through the at the time of purchase and could not be cancelled. Uberhothotels.com, a third-party Internet sales site operator is willing to pay the hotel $160.00 for each room it purchases but wants a commitment from the hotel that it would be able of $179.99 per night (plus its estimated taxes and its service fees). Scott already has 200 rooms sold for this specific night to buy and then resell up to 100 rooms. It believes that it can do so if it lists the rooms as open to all buyers and at a rate at the hotel's rack rate. He has summarized the information about his various sales options below: Rooms available Rooms currently reserved 300 200 Channel Group sales Estimated Room Sales Estimated ADR 80 $165.00 CRS sale (with 20% discount off rack rate) Third-party merchant 90 $183.99 100 $160.00 RevPAR Estimate Worksheet: City Center Plaza Prepared By Scott H. Distribution Channel CRS Sale Third-Party Merchant $45,998.00 Previous Booked Revenue: 200 Rooms @ $229.99 $45,998.00 $45,998.00 Estimated Channel Revenue Contribution (a) Total Rooms Revenue Estimate (b) Total Rooms Sold (c) ADR (d) Occupancy % (e) Rev PAR (1) (1) Assume that each distribution channel produces as projected. Complete Scott's RevPAR estimate worksheet above. Show your work for calculating the Group Sales performances (a)-(f). (15 points) Group Sales Name: (2) Based upon his best estimates of each channel's performance which channel would produce the highest ADR? (2 points) (3) Based upon his best estimates of each channel's performance which channel would produce the lowest ADR? (2 points) percentage? (2 points) (4) Based upon his best estimates of each channel's performance; which channel would generate the highest occupancy (5) Based upon his best estimates of each channel's performance; which channel would generate the lowest occupancy percentage? (2 points) (6) Based upon his best estimates of each channel's performance which channel would generate the highest RevPAR? (2 points) (7) Based upon his best estimates of each channel's performance which channel would generate the lowest RevPAR? (2 points) (8) If you were Scott, to which channel would you allocate the 100 rooms? Why? (2 points) Scott Haner is the general manager at the City Center Plaza, a 300-room franchised hotel. He is evaluating alternative options regarding the allocation of 100 unsold guest rooms for the third weekend of next month. His property's group room. The hotel's FOM believes that if the 100 rooms are listed on the "Deals at This Hotel" page of the franchisor room sales department believes (but is not positive) that it can sell 80 group rooms for that date at a rate of $165.00 per franchisor's CRS website. The sale would apply only to buyers willing to agree that the room would be billed to the guests operated website, with a 20% discount off the hotel's normal $229.99 rack rate, 90 rooms could sell through the at the time of purchase and could not be cancelled. Uberhothotels.com, a third-party Internet sales site operator is willing to pay the hotel $160.00 for each room it purchases but wants a commitment from the hotel that it would be able of $179.99 per night (plus its estimated taxes and its service fees). Scott already has 200 rooms sold for this specific night to buy and then resell up to 100 rooms. It believes that it can do so if it lists the rooms as open to all buyers and at a rate at the hotel's rack rate. He has summarized the information about his various sales options below: Rooms available Rooms currently reserved 300 200 Channel Group sales Estimated Room Sales Estimated ADR 80 $165.00 CRS sale (with 20% discount off rack rate) Third-party merchant 90 $183.99 100 $160.00 RevPAR Estimate Worksheet: City Center Plaza Prepared By Scott H. Distribution Channel CRS Sale Third-Party Merchant $45,998.00 Previous Booked Revenue: 200 Rooms @ $229.99 $45,998.00 $45,998.00 Estimated Channel Revenue Contribution (a) Total Rooms Revenue Estimate (b) Total Rooms Sold (c) ADR (d) Occupancy % (e) Rev PAR (1) (1) Assume that each distribution channel produces as projected. Complete Scott's RevPAR estimate worksheet above. Show your work for calculating the Group Sales performances (a)-(f). (15 points) Group Sales Name: (2) Based upon his best estimates of each channel's performance which channel would produce the highest ADR? (2 points) (3) Based upon his best estimates of each channel's performance which channel would produce the lowest ADR? (2 points) percentage? (2 points) (4) Based upon his best estimates of each channel's performance; which channel would generate the highest occupancy (5) Based upon his best estimates of each channel's performance; which channel would generate the lowest occupancy percentage? (2 points) (6) Based upon his best estimates of each channel's performance which channel would generate the highest RevPAR? (2 points) (7) Based upon his best estimates of each channel's performance which channel would generate the lowest RevPAR? (2 points) (8) If you were Scott, to which channel would you allocate the 100 rooms? Why? (2 points)

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