308 Chapter 11 CASE STUDYCase stUDYCollege and professional sports are economy boosters for their host cities. The stream of revenue to the local economy generated by excited fans comes from the sale of tickets, hotel room rentals, car rentals, restaurant meals served, gasoline sales, park-ing fees, and vendor sales. The sales become even greater when a team is winning.Cities such as Lincoln, Nebraska; Columbus, Ohio; Tallahassee, Florida; and Baton Rouge, Louisiana count on the revenue generated by sell-out crowds during the college football season. Stadiums that hold from 82,000 to 102,000 fans provide an eco-nomic windfall for the college com-munities where they are located.Some fans of professional sports teams, such as the Chicago Cubs and Green Bay Packers, are loyal no mat-ter how well their team is performing. These faithful fans provide a steady flow of revenue to the sports program and surrounding communities.College World Series Wars?Cities that host major sporting events understand the financial benefits. Omaha, Nebraska, appreciates the millions of dollars poured into the city during the annual College World Series. Zesto’s, a popular fast-food restaurant, has truckloads of food rolling in each day to meet the demands of customers from all over the United States.The event has been voted the Best Annual Local Event and ranks as the third-most important state tourist attraction, according to a survey conducted by Omaha Magazine. The revenue from this two-week event has attracted the attention of other cities, such as Oklahoma City, that would like the opportunity to host the event in the future. Economic experts estimate that the College World Series generates more than $40 million for the Omaha economy. It is no wonder that other cities would like to host thisevent.Omaha tore down Rosenblatt Stadium, the former home of the College World Series, to build the new $131-million TD Ameritrade Park Omaha that has 24,505 seats. Omaha must continue to demonstrate top-notch hospitality so that the College World Series event planners continue to choose Omaha as its host city.Think Critically

1. Why is it important for Omaha to continue hosting the College World Series? Consider both financial and nonfinancial benefits.

2. What are some of the greatest sources of revenue for cities that are home to popular college and professional sports teams?

3. How can hosting a major event like the College World Series help a city develop a national image? Explain your answer.

4. List ten good food items for ven-dors to sell at the College World Series

Forecasting labour costs is a key aspect of hotel revenue management that enables hoteliers to appropriately allocate hotel resources and fix pricing strategies. Mary, the President of Hellenic Hoteliers Federation (HHF) is interested in investigating how labour costs (variable L_COST) relate to the number of rooms in a hotel (variable Total_Rooms). Suppose that HHF has hired you as a business analyst to develop a linear model to predict hotel labour costs based on the total number of rooms per hotel using the data provided. 3.1 Use the least squares method to estimate the regression coefficients b0 and b1 3.2 State the regression equation 3.3 Plot on the same graph, the scatter diagram and the regression line 3.4 Give the interpretation of the regression coefficients b0 and b1 as well as the result of the t-test on the individual variables (assume a significance level of 5%) 3.5 Determine the correlation coefficient of the two variables and provide an interpretation of its meaning in the context of this problem 3.6 Check statistically, at the 0.05 level of significance whether there is any evidence of a linear relationship between labour cost and total number of rooms per hotel

TR=TOTAL ROOMS, L COST =LABOUR COST

TR L_COST       Turnover_per_Room
412       2,165,000       21,519.42
313       2,214,985       21,755.04
265       1,393,550       17,937.91
204       2,460,634       37,400.05
172       1,151,600       31,824.30
133       801,469 19,444.46
127       1,072,000       22,551.18
322       1,608,013       18,205.04
241       793,009 8,793.00
172       1,383,854       25,114.16
121       494,566       14,095.35
70       437,684       22,231.59
65       83,000 5,953.85
93       626,000       18,150.99
75       37,735       3,871.67
69       256,658       11,071.70
66       230,000       8,030.30
54       200,000       10,185.19
68       199,000      
57       11,720       2,982.46
38       59,200       6,342.11
27       130,000       25,185.19
47       255,020       18,223.26
32       3,500 1,000.00
27       20,906 2,384.85
48       284,569       14,264.58
39       107,447       10,478.26
35       64,702       10,811.29
23       6,500 3,478.26
25       156,316       22,231.56
10       15,950       8,150.00
18       722,069       81,556.71
17       6,121 2,151.88
29       30,000       4,068.97
21       5,700 4,142.86
23       50,237       5,113.83
15       19,670       10,037.87
8       7,888 4,849.25
20 3,750.00
11 1,753.91
15       3,500 2,666.67
18       112,181       34,260.90
23              
10       30,000 12,000.00
26       3,575 3,001.81
306       2,074,000       19,803.92
240       1,312,601       15,823.58
330       434,237       4,361.65
139       495,000       17,050.36
353       1,511,457       15,370.22
324       1,800,000       15,432.10
276       2,050,000       22,101.45
221       623,117       9,199.82
200       796,026       18,158.06
117       360,000       11,649.57
170       538,848       10,294.08
122       568,536       17,510.12
57       300,000       15,614.04
62       249,205       9,623.61
98       150,000       6,326.53
75       220,000       6,666.67
62       50,302       2,058.19
50       517,729       20,000.00
27       51,000       16,666.67
44       75,704       7,118.52
33       271,724       40,499.76
25       118,049       9,664.80
42              
30       40,000       4,833.33
44 522.73
10       10,000       7,300.00
18       10,000       5,555.56
18 1,338.22
73       70,000       4,958.90
21       12,000       6,904.76
22       20,000       3,636.36
25       36,277       1,489.72
25       36,277       1,489.72
31       10,450       2,348.39
16       14,300       5,000.00
15       4,296       732.00
12 1,083.33
11 2,000.00
16       379,498      
22       1,520 673.36
12       45,000       58,333.33
34       96,619       18,817.53
37       270,000       21,621.62
25       60,000 10,000.00
10       12,500 9,000.00
270       1,934,820       27,977.57
261       3,000,000       36,781.61
219       1,675,995       17,559.77
280       903,000 15,907.14
378       2,429,367       16,666.67
181       1,143,850       22,352.93
166       900,000 20,180.72
119       600,000       31,932.77
174       2,500,000       32,628.43
124       1,103,939       17,559.77
112       363,825 8,054.72
227       1,538,000       16,173.81
161       1,370,968       23,161.53
216       1,339,903       12,503.53
102       173,481       6,795.40
96       210,000       15,833.33
97       441,737       11,759.43
56       96,000       8,000.00
72       177,833       7,501.82
62       252,390       25,266.45
78       377,182       17,409.35
74       111,000       9,891.89
33       238,000       23,848.48
30       45,000       5,919.30
39       50,000       3,846.15
32       40,000       6,250.00
25       61,766       4,237.28
41       166,903       25,266.46
24       116,056       17,409.33
49       41,000       5,102.04
43       195,821       11,759.42
9              
20       96,713       17,409.35
32       6,500       2,953.13
14       5,500       2,500.00
14       4,000       4,285.71
13       15,000       2,307.69
13       9,500       1,538.46
53       48,200       3,528.30
11       3,000       10,909.09
16       27,084       3,652.44
21       30,000       2,380.95
21       20,000       2,380.95
46       43,549       1,314.04
21       10,000       952.38

Please answer each question in 350-500 words.

Discuss how you and your work place(Delta hotel by Marriott) could create a better team-orientated work environment.

If you found an emaciated house cat in a park and decided to provide nutritional rehabilitation, what are 4 important principles that you would consider in deciding your course of action (list and explain)?

1. The Cody Hotel, a proposed 50-room hotel (rooms-only lodging facility), planned to build in mid-Michigan. The owner is concerned about the average daily room rate (ADR), construction costs, borrowing costs, and their impact on profits. He provides you with the following information:

Determine the required ADR to achieve the owner's goal of earning an ROI of 15%. (20 points)

Simulation Case Study:
Phoenix Boutique Hotel Group

Phoenix Boutique Hotel Group (PBHG) was founded in 2007 by Bree Bristowe. Having worked for several luxury resorts, Bristowe decided to pursue her dream of owning and operating a boutique hotel. Her hotel, which she called PHX, was located in an area that included several high-end resorts and business hotels. PHX filled a niche market for “modern travelers looking for excellent service and contemporary design without the frills.” Since opening PHX, Bristowe has invested, purchased, or renovated three other small hotels in the Phoenix metropolitan area: Canyon Inn PHX, PHX B&B, and The PHX Bungalows.

One of the customer service enhancements Bristowe has implemented is a centralized, toll-free reservation system. Although many customers book specific hotels online, the phone reservation system enables PBHG to find the best reservation match at all properties. It has been an excellent option for those customers who have preferences regarding the type of room, amenity options, and the best price across the four hotel locations.

Currently, three agents are on staff for the 6 a.m. to 2 p.m. call shift. The time between calls during this shift is represented in Table 1. The time to process reservation requests during this shift is in Table 2.

Table 1: Incoming Call Distribution

Table 2: Service Time Distribution

Bristowe wants to ensure customers are not on hold for longer than 2 minutes. She is debating hiring additional staff for this shift based on the available data. Additionally, Bristowe and PBHG will soon be featured in a national travel magazine with a circulation of over a million subscriptions. Bristowe is worried that the current operators may not be able to handle the increase in reservations. The projected increase for call distribution is represented in Table 3.

Table 3: Incoming Call Distribution

Bristowe has asked for your advice in evaluating the current phone reservation system. Create a simulation model to investigate her concerns. Make recommendations about the reservation agents.

Suppose we all agree that the emission of carbon into the atmosphere is a policy problem
.Further, assume we know that the private marginal cost of a ton of Co2 is $17
while the true social marginal cost of a ton of carbon is $32. Clearly layout a policy of
carbon taxes that would result in the socially optimal level of carbon emissions.
Demonstrate your argument graphically and carefully explain. Evaluate the relative costs
and benefits of carbon taxes relative to emission targets/restrictions. How would your
analysis change if you believed innovation in carbon saving technologies was going to
improve in the near future?

In January 2017, Mitzu Co. pays $2,700,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $854,000, with a useful life of 20 years and a $90,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $427,000 that are expected to last another 14 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,769,000. The company also incurs the following additional costs:

3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the 12 months of 2017 when these assets were in use.

• Record the year-end adjusting entry for the depreciation expense of Building 2.

• 2

  Record the year-end adjusting entry for the depreciation expense of Building 3.

• 3

  Record the year-end adjusting entry for the depreciation expense of Land Improvements 1.

• 4

  Record the year-end adjusting entry for the depreciation expense of Land Improvements 2.