HTM 4250 Lecture Notes - Lecture 6: Fixed Cost, Revpar

• School: University of Guelph
• Department: Hospitality and Tourism Management
• Course: HTM 4250
• Professor: Holmes

Document Summary

Joe liberman is the rm at the city center plaza, a 300-room franchised hotel. He is evaluating alternative options regarding the allocation of 100 unsold guest rooms for the third weekend of next month. His property"s group room sales department believes (but is not positive) that it can sell 80 group rooms for that date at a rate of . 00 per room. The sale would apply only to buyers willing to agree that the room would be billed to the guests at the time of purchase and could not be canceled. Uberhothotels. com, a third-party merchant model operator, is willing to pay the hotel . 00 for each room it purchases but wants a commitment from the hotel that it would be able to buy and then resell up to 100 rooms. It believes that it can do so if it lists the rooms as open to all buyers and at a rate of . 99.