Reference no: EM132460013
You are an analyst for a 1200 room hotel. Your job is to maximize the hotel's revenue. It's late Sunday night and you're trying to find the correct rate to set for next Friday night, for which you are already at 75% occupancy. There won't be any amount of cancellations of note, because customers aren't allowed to cancel without charge within 2 weeks of booking.
If your rate is too low, your remaining inventory will fill up with low-rate bookings, hurting revenue. If your rate is too high, you won't sell enough of your inventory, hurting revenue. The revenue-maximizing rate is somewhere between too low and too high.
You've analyzed a history of booking inquiries from several similar Fridays in the company's recent history. Keep in mind, booking inquiries don't always turn into bookings; many customers decline because the rate is too high. We call this "lost business". You compile an average of booking inquiries. You expect them to flow into the call center all this coming week as follows:
Monday Tuesday Wednesday Thursday Friday
50. 70. 170. 300. 550
The interpretation of this table is as follows. On Monday, 50 people will call in and request a Friday booking. On Tuesday, 70 will call in to request a Friday booking. Then 550 people will request a same-day booking on Friday.
You analyze your lost business data and reveal that:
Some people will not show up for their reservation, so you need to overbook the hotel by a certain amount. However, you do not want to overbook too much. Having a customer show up with no room to give them is a customer service nightmare for a casino hotel. Company policy does not permit you to risk this happening more than twice in a year.
History shows average no show to be equal to 4% of bookings with a standard deviation equal to 0.416667% of bookings. History also shows no show to have a normal distribution
For your assignment, please do the following:
For now, you do not need to generate simulations. For example, you may treat the table of booking inquiries as absolutely certain.
|
Describe the various integrative functions and processes
: Describe the various integrative functions and processes within the information systems area, including databases, systems analysis, security, networking
|
|
Required returns on zulu and guru stocks
: When all of these changes are made, what will be the difference in the required returns on Zulu's and Guru's stocks?
|
|
Determine the suitability of an investment strategy
: Determine the suitability of an investment strategy,Create investment recommendations based on research that includes the rationale and risk mitigation
|
|
What are investors motivation for investing in stocks
: What are investors' motivation for investing in stocks, bonds, preferred shares, and convertibles, based on the characteristics of each of these financial vehic
|
|
Amount of cancellations of note
: There won't be any amount of cancellations of note, because customers aren't allowed to cancel without charge within 2 weeks of booking.
|
|
Identify preliminary analytical procedures
: Identify preliminary analytical procedures related to depreciation expenses that may be effective in identifying potential material misstatements.
|
|
Company depreciation and amortization expense
: The company has $6,800 interest expense, and the corporate tax rate is 35 percent. What was the company's depreciation and amortization expense?
|
|
What is the expected growth rate of kj dividend
: The KJ corporation has averaged an ROE of 15% over the past 5 years and it should continue into the future. The firm has a payout ratio of 80% on earnings
|
|
Examine quicktrip value chain
: Analyze how operation management activities affect the customer experience. Select two (2) operation management challenges and provide the solutions
|