Question

Distinguish between upselling at a full service resort and upgrading at a full serivice resort. Give a example of each.

Compute how much more the cashier needs to get from the guest as the guest checks out OR

how much change the cashier needs to give as the guest checks out.

(Note: More information may be GIVEN than is needed.)

GIVEN:          A guest from the Land of Everywhere (LE) has a folio balance of $639.00

The guest has been here 3 nights 9 LE’s = $1.00in the Land of Everywhere

The guest tenders 6 each of 1,000 LE bills

State sales tax is 5%

The bank’s rate is 8 LE’s = $1.00

Cashier’s give change in U.S. currency only

Answer 1

1. Upselling vs upgrading

Upselling at the resort is one of the sales techniques in which a customer is persuaded/convinced to spend more by buying a premium version of what’s being purchased. Here the product might be different from the older product. For e.g let us consider that a resort has three packages for its guest namely silver, gold, and premium. Silver package includes 3 days and 4 nights stay with no free food, the Gold package includes 3 days and 4 nights stay with free breakfast and the platinum package includes 3 days and 4 nights stay with free breakfast and city tour. Now, if a customer initially books a silver package and sales guy convinces him to buy gold package than this is upselling.

Upgrading is the process of replacing a product with a newer version of the same product. For e.g let us consider that a person who is a regular customer of a resort who is rated 3-star and provides leisure and free breakfast, has booked a resort which is rated 5-star and provides leisure, free breakfast and scuba diving. This is upgrading from his existing packaging.

2.

A guest from the Land of Everywhere (LE) has a folio balance of $639.00

The guest has been here 3 nights 9 LE’s = $1.00in the Land of Everywhere

The guest tenders 6 each of 1,000 LE bills

State sales tax is 5%

The bank’s rate is 8 LE’s = $1.00

Total Bill = $639 + (5% of 639) i.e. state tax

              = $639+$31.95

              = $670.95

Amount given by Guest = 6*1000 LE

                                      = 6000 LE

Converting Amount into $ = 6000/8    (As 8LE=$1 - Bank rate)

                                         = $750

Balance Amount = $750 - $670.95

                           = $79.05

Cashier has to give $79.05 back to Guest

When guest goes back to LE than he can encash it of 9LE=$1 as this is rate in his country

so, in his country he gets back 9*79.05 LE i.e. 711.45 LE