Sherri Lamar is the manager in charge of room sales at the 200-room Bradford Inn. The Inn has…
Sherri Lamar is the manager in charge of room sales at the 200‐room Bradford Inn. The Inn has five different room types, each with a rack rate that reflects its guests’ view of each room type’s value. Sherri knows that she cannot upsell guests who stay in her highest‐rated rooms; however, she feels that 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 but would actually prefer a higher‐priced room.
To improve revenue, Sherri created and implemented a comprehensive upsell training program for her hotel’s front desk staff. The program helped the desk staff stress the benefits to arriving guests of each higher‐priced room type. At the end of the first week of the program’s implementation, Sherri found that her clerks were successful in upselling approximately 1 of every 10 guests arriving at the hotel. A summary of the Inn’s guest reservation/actual stay records is displayed here. Complete the revenue summary for Sherri and then, based on her first week’s data, provide the answers she needs for the questions that follow.
a. What would be the Inn’s ADR if all arriving guests had been assigned to their originally reserved rooms?
b. What was the ADR actually achieved by the Inn as a result of the upsell program?
c. What would be the Inn’s room revenue if all arriving guests had been assigned to their originally reserved rooms?
d. What was the total room revenue actually achieved by the Inn as a result of the upsell program?
e. What was the amount of the increased room revenue that resulted from Sherri’s upsell program?
f. What was the percent increase (rounded to one decimal place) in room revenue achieved by the Inn as a result of the program?
g. Assume that this first week represents the typical week for the upsell program. What would be the hotel’s 52‐week room revenue increase resulting from the upsell program’s implementation?