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Question - Joel knows that under his franchise agreement, he pays an 8 percent franchise fee and 3 percent marketing fee on all revenue generated from room sales. Additional fees for using the hotel's CRS are 1 percent of booked revenue plus $2.00 per each room reserved. Internet service provider (IDS) related charges paid by the hotel for rooms sold through Internet sites including uberhothotels.com are $10.00 per room sold. Given this information, help Joel complete the revenue estimate worksheet presented below.
A. Based on Joel's calculated net ADR yields for each of the three channels:
1. Which channel has the highest net ADR yield?
2. Which channel has the lowest net ADR yield?
B. Based on Joel's calculated net total revenue achieved under each of the three sales scenarios:
1. Which channel would generate the highest net total revenue?
2. Which channel would generate the lowest net total revenue?
C. Based on this information, to which channel would you allocate the 100 rooms? Why?
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