Reference no: EM132659485

Linda Sonnie is the RM at the 200-room Loews Annapolis Hotel. The hotel has five different room types, each with a rack rate that reflects its guests' view of each room type's value. Linda knows she cannot upsell guests who stay in her highest rated rooms; however, she feels there is good potential to impact her hotel's revenue performance via upsells to guests who originally reserved one of the four lower-priced room types. Linda created and implemented a comprehensive upsell training program for her hotel's front desk. The cost of providing the upsell training to the hotel's eight desk staff was $100.00 per employee. At the end of the first week of the program's implementation, Linda found that her clerks were successful at upselling approximately one of every ten guests arriving at the hotel. A summary of the hotel's guest reservation/actual stay records is displayed here. Complete the summary for her and then provide Linda with answers she needs for the questions below.

Room Type	Rack Rate	Nights Reserved	Reserved Revenue	Actual Night Usage	Actual Revenue
Superior Parlor Suite	$299.99	75		75
Parlor Suite	$249.99	100		110
Jr. Parlor Suite	$219.99	125		140
Deluxe	$159.99	250		275
Standard	$109.99	450		400
Total Nights		1000		1000
Total Revenue
ADR

Based on Linda's first week data:

Question A. What would the hotel's ADR have been if all arriving guests had been assigned to their originally reserved rooms?

Question B. What was the ADR actually achieved by the hotel as the result of the upsell program?

Question C. What would the hotel's revenue have been if all arriving guests had been assigned to their originally reserved rooms?

Question D. What was the revenue actually achieved by the hotel as the result of the upsell pro- gram?

Question E. What was the amount of the increased revenue that resulted from Linda's upsell program?

Question F. What was the percent increase (rounded to one decimal place) in revenue achieved by the hotel as a result of the program?

Question G. Assume this first week represents the typical week for the upsell program. What would the hotel's 52-week revenue increase be as the result of implementing it?