Assignment:
Paul is performing a displacement analysis for the Beach hotel. He received a group request with a total of 90 room nights at a group rate of $130.00 Paul had forecasted high occupancies over this time frame and forecasted mostly transient rooms at an ADR of $195.00. The group request includes breakfast.
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90
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Group Room Rate
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$ 130.00
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Total Group Room Revenue
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Total Group Room Cost
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$1,935.00
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Total NET group Room Revenue
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Total Displaced Transient Room nights
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55
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Displaced Transient Room Rate
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$195.00
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Displaced Transient Room Revenue
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Total Transient Room Cost
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$1,306.25
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Total Displaced Transient Rooms Revenue
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Net Room Revenue Differential
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Net Room Revenue Differential
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Net Food contribution differential
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$561.25
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Other Revenue contribution
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$0
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Total Increase/Decrease from Group
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1. Calculate and fill out the missing values in the grey boxes (use 2 decimal places for dollar values).
2. Analyzing this displacement analysis, would you recommend Paul to accept this group? In maximum 150 words explain your answer.