Revenue Math Problem Example | Topics and Well Written Essays - 750 words

Revenue - Math Problem Example yet though the property has never been renovated none of the hotels in its rating category has any advantages over it and changing the decor on a regular basis can be a means of devising the place continually attractive to its clients. The hotel is close to public transportation which means that its guests do not feel to go very far or get lost in order to obtain transportation. Additionally, thither is direct access from the street to its food and potable facility which means that this aspect of the business bequeath be more successful than its competitors. It is evaluate that the food and beverage aspect of the business will allow for similar level of gross or probably more based on recent eatery closures and the location of the facility. The hotel expects to have an supra-fair market room share which means that its occupancy levels will be above the market average. Revenue generation This property has a number of avenues at its disposal to gen erate revenue. They take rooms, food and beverage, parking, laundry, telephone, entertainment and room service. This information is highlighted in the appendix. With an occupancy level of 60% and an ADR of $152 the property would be able to generate revenues from rooms of $705,580. This calculation takes into grade rooms sold on week long time (W/D) and weekends (W/E). Information gathered indicates that during quarter 1 of the previous years more leisure was demanded on weekends than on week twenty-four hour periods and so the rates were set higher on weekends than on week days. In the case of business the rates were higher on weekdays since this is usually the time when certain types of business desire banks and service operations carry out their major activities. Corporate rates were also higher on weekdays than on weekends and so the information on occupancy and market mix was useful in this regard. The projections takes into account the maximize occupancy strategy. The use of this strategy will draw guests from other properties to this one. Additionally, guests will get survey for money and will return based on the plainive characteristics of the property that sets it apart from the competition. The food and beverage facilities on the property should benefit tremendously from its proximity to public transportation and its access from the street. It has adequate post for the advertisement of the facilities. A guest survey that was done last year indicated that advertising was of great brilliance to all types of customers except tour groups. This would definitely help to boost not only the room revenue but food and beverage as wellhead. Some restaurants recently closed their doors and this property stands to benefit from the cut number of restaurants in the area and the fact that none is scheduled to be built in the swindle term. Additionally, a number of corporate offices are opening in the area and this property stands tall with its distinct f acilities which set it apart from its competitors. The property is expected to see approximately 700 additional persons for breakfast each day and this is considered very conservative, approximately 8,000 for lunch and 6,000 for dinner. This projection is based on the foregoing information as well as information obtained from the food and beverage performance and price points. Dinner followed by lunch is expected to be the main revenue generator. In terms of beverage from the bar there should be sort of a bit of persons