Hospitality operations and control

1. The price a hotel can obtain for its guest rooms is determined largely by demand. The Average Daily Rate (ADR) or average daily rate for this hotel is $100 for Monday through Thursday. The ADR increases over the weekend, Friday, Saturday, and Sunday by 30%. You need to determine your daily revenue as well as the total revenues for the week. The Occupancy Rate of a hotel and the Average Daily Rate (ADR) has a direct effect on total revenue. Which of the following two changes would maximize revenue, (1) occupancy rate increase by 3% each day and ADR stay the same or (2) occupancy rate stay the same and ADR increase by 5%? Use the estimated weekly averages and re-calculate the Total Revenue for Week 3 in March and show your work.

Mon Tues Wed Thurs Fri Sat Sun Estimate
the
March 16 March 17 March 18 March 19 March 20 March 21 March 21
Average

Rooms 185 200 185 200 215 220 190
Available

Occupancy 50% 70% 75% 75% 83% 87% 40%
Rate

Estimated
Rooms Sold
Estimated
ADR

Total
Daily Total
Revenue
2. Discuss each of the six steps in the Decision Making Process and how you would use the process as the owner/manager of a Hotel to make a decision about the cost of expensive kitchen equipment.

3. Describe the factors that affect room rates. Why would the hotel not simplify the room rates and make them all the same?

4. Analyze and discuss the effects employee health and wellness have on employee performance. How does it affect the overall business of an hotel? How does it affect guests?

5. Being a manager in a hotel business means long hours and sometimes going late into the night. This can create an imbalance between career, family, and leisure time. Discuss why creating and keeping a balance between career, family, and leisure time is important. What are the effects on a long term imbalance? How can a manager ensure a proper balance and maintain a profitable hotel at the same time?