Case Hotel Beaux Arts Essay Example

future. How may this exchange rate impact business in the near future for Hotel Beaux Arts; support your answer. Due to the expected change in exchange rate, the rate of staying at Hotel Beaux Arts will increase in Dollar Amount, as such it will become more expensive for American Travelers to stay at this hotel; this may impact the business from American travelers negatively; fewer US guests will stay 2.

The Investors of Hotel Beaux Arts have met with The Executive committee f the hotel to discuss the performance. The investors would like to see an increase in the Revpar performance for next year (2011)to Euro 160 instead of the current Euro 148. 47 As a Revenue Manager you are asked to perform an analysis of the current situation to advice the GM of your recommendation. This current situation should be a comparison with the Hotel’s competition.

The Hotel should focus on increasing business of two segments: contract and Group. 3. Hotel Beaux Arts is forecasting to sell the following roomnights for the onth of March 2011: March 4:467 rooms March 5:320 rooms March 6:410 rooms March 7:525 rooms March 8:575 rooms March 9:580 rooms March 10:301 rooms The Sales Department received a request for a group booking of 125 rooms starting March 5 for 5 nights. The average transient rate for March 2011 is Euro 216,- Revenue Management now needs to perform a displacement analysis to determine if it’s worthwhile accepting the group.

The group has requested not only the rooms, but also conference space and F&B. They would like conference rooms for the 5 days for a total amount of Euro 120,000. - (total conference room

revenue for the entire stay) Furthermore they have requested F&B in the form of dinners and lunches with a total Sales price of Euro 86,750. - (total revenue for entire stay) The CM of the meeting rooms is 93% and for F&B this is 34%

It’s difficult for a hotel to maintain rate parity; a merchant channel can perform a mark up which ends up in a higher rate than original sell rate Other possible answer: It’s more expensive than other channels (see above) Other possible answer: Merchant model is based on an agreement contract, therefore the Hotel is committed to a certain number of rooms at a certain sell rate. If the business circumstances change, the Hotel doesn’t have the flexibility to back out of the contract.