Reference no: EM133092468

The Montcalm hotel is a 4-star spa hotel located in Saint-Adolphe right beside the lake and has in total 400 rooms. Even though it is the perfect nature getaway located an hour from Montreal, they have a hard time filling up their hotel. Last year, they have obtained an occupancy rate of 70% with an ADR of 127$ for the month of October 2019

This year, the general manager decided to offer a monthly bonus to the revenue manager if the hotel manages to increase their RevPar by 6% each month compared to last year. The hotel is currently at 68% occupancy with an ADR of 129$ on the 28th of October 2020. There are only 4 nights remaining before closing the month and Josh, the revenue manager is afraid that he won't attain his monthly objective.

He receives a last-minute group request from a college student group called Sigma Iota Fraternity that wishes to stay for 4 nights arriving in the evening of the 28th of October. They require 110 rooms for that period but their budget is only at 55$ per room. Fraternity groups also holds a reputation of noisy groups that might disturb other guests in the hotel.

The current occupancy for the last 4 remaining days of the month is currently at 65%, the Revenue Manager knows he will be able to sell the rest of the rooms (If he takes the group) at 132.00$

Questions

1. If the Montcalm hotel accepts this group, will Josh attain his monthly objective?

2. What impact will this group do to the hotel and what are the implication of the hotel?