El Durazno is the only resort hotel on a small desert island off the coast of South America. It faces two market segments: bargain travelers and high-end travelers. The demand curve for bargain travelers is given by ??? = 400 ? 2???. The demand curve for high-end travelers is given by ??? = 500 ? ???. In each equation, Q denotes the number of travelers of each type who stay at the hotel each day, and P denotes the price of one room per day. The marginal cost of serving an additional traveler of either type is $20 per traveler per day.  

a. Under the assumption that there is a positive demand from each type of traveler, what is the equation of the overall market demand curve facing the resort?

b. What is the profit-maximizing price under the assumption that the resort must set a uniform price for all travelers? For the purpose of this problem, you may assume that at the profit-maximizing price, both types of travelers are served. Under the uniform price, what fraction of customers are bargain travelers, and what fraction are high end?  

c. Suppose that the resort can engage in third-degree price discrimination based on whether a traveler is a high-end traveler or a bargain traveler. What is the profitmaximizing price in each segment? Under price discrimination, what fraction of customers are bargain travelers and what fraction are high end?  

d. The management of La Durazno is probably unable to determine, just from looking at a customer, whether he or she is a high-end or bargain traveler. How might La Durazno screen its customers (i.e., cause them to self-identify type through their choices) so that it can charge the profit-maximizing discriminatory prices you derived in part (c)?

It’s the year 1995 and John Smith is staying overnight at a hotel before an important meeting the next morning. He asked the customer service desk to give him a 7 am wake-up call. The probability that he gets the call is 0.9. If he gets the call, the probability that he will arrive for the meeting on time is 0.9. If the call is not given, the probability that he will be on time for the meeting is 0.4.
a) Calculate the probability that John Smith will not arrive on time for the meeting.
b) If John Smith is on time for the meeting, what is the probability that the wake-up call was not made?

Four firms in an industry are considering forming a cartel. They meet in a smoke-filled hotel room to discuss the terms of the cartel and to weigh their options. Each firm has marginal cost given by MC=20+2q. Demand for the market is given by Q=400-2p.

1. What is the supply for each firm? For all four firms?

2. Suppose the firms compete. What would be the resulting market prices and quantities under competition? How much would each firm produce and what would be their producer surplus?

3. Now suppose that the firms successfully form a cartel. They agree to divide the cartel quantity equally among the four firms. How much will each firm produce under the cartel? What will be the producer surplus of each firm?

4. One of the firms is considering cheating on the cartel agreement. Discuss how the firm could cheat on the cartel agreement and what benefits the firm gets from cheating. [Hint: show with equations or a graph how the firm’s profits would change, assuming that the other three firms stick to the cartel agreement.

Marriott Hotel data breach, explain with a report on it that answers the following question; When and where was the breach? What was the cause of the breach (be specific)? Who was affected? How severe were the effects of the data breach on the individuals affected? Were there other potential effects (e.g. identity theft) that haven't been documented yet? How did the company respond to the breach? Was there anything the company failed to do that would have prevented it? Did the company undertake any actions to prevent this (or similar things) from happening again? Was there a public outcry over the company's response to the breach? How did the company address the public's reaction? What consequences did the company or individuals at the company suffer (firings, legal liabilities, etc.)? What recommendations would you make to prevent a similar breach from occurring?.

The General Manager of The Cougar Hotel would like you to take the balances for 20X7 and

20X8 and;

1.   Prepare a comparative Summary Operating Statement that is in compliance with the USALI 11th Edition (i.e. make sure it is in the correct format, use the template found in the Income Statement module or in the “Other Course Resources” folder).

2.   Once the Summary Operating Statement has been completed, perform a vertical and horizontal analysis of the statement.

THE COUGAR HOTEL 20X7                     20X8

Administrative and General                                                  1,426,678             1,460,830

Beverage Revenue                                                                  1,333,039             1,337,700

Building Wall Rent Received                                                                                  250,000

Cell Tower Rent Received                                                         500,000

Food and Beverage                                                                 3,999,116             4,122,300

Food and Beverage Expenses                                                4,265,724             4,340,000

Gain on Sale of Equipment                                                                                     150,000

Inforamation and Telecommunications Systems                  281,813                267,225

Insurance                                                                                     264,200                285,040

Loss on Sale of Equipment                                                        200,000

Management Fees                                                                     528,399                534,450

Miscellaneous Income                                                               447,213                385,000

Property and Other Taxes                                                          704,532                694,785

Property Operating and Maintenance                                     563,626                623,525

Recreation Department                                                             440,333                450,450

Recreation Department Expenses                                           577,937                567,000

Replacement Reserve                                                            1,409,065             1,425,200

Room Revenue                                                                      10,733,112           10,815,000

Rooms Department Expenses                                               2,992,887             3,010,000

Sales and Marketing                                                               1,268,158             1,371,755

Spa Expenses                                                                               385,291                378,000

Spa Revenue                                                                                660,499                704,550

Utilities                                                                                        792,599                748,230

CHECK FIGURES:

These are totals that you can use to check and see if your math is correct and also check if you have figures placed correctly.

20X7                     20X8

Total Departmental Profit                                                     9,391,473             9,520,000

Gross Operating Profit                                                           5,058,599             5,048,435

EBITDA Less Replacement Reserve                                     2,452,403             2,508,960

The management of an international hotel chain, ABC Suites, intends to set up a system of certification for all their employees. They are focussed on four areas: customer service, proficiency in tools, workplace health and safety and operational profitability. Pick any TWO areas and suggest what contents can be included in each section. All employees will have to be certified in the every section over two years. You may model your answers in the following manner. Level 1 is the beginner to Level 3 highest level). Customer Service Level 1 : --contents here-- Level 2 : --contents here-- Level 3 : --contents here-- Proficiency in Tools Level 1 : Level 2 : Level 3 : (2 marks for each level x 6; 1 mark for providing the name of the certification system)

Marisa is a new marketing analyst for the Paragould Hotel chain. She is reviewing the hotel's current social media activities and trying to classify where each will fit into the three main areas the company wants to focus on. 1) Give your customers a specific hashtag and CTA so you can easily monitor and reward mentions. 2) Assign a social currency or value to the social actions your consumers take. 3) Be prepared to surprise and delight someone for his or her actions as they happen. The goal of this exercise is to assist Marisa by identifying social media tools for each objective. Select the most appropriate social media loyalty objective for each of the examples below. 1. Enter people on Twitter for a free weekend drawing if they #Paragouldweekends. 2. Offer 10 percent off any room for the next month if they like and share the firm's new Facebook. 3. Provide loyalty points for every time a consumer mentions Paragould on Instagram. 4. Offer PGH Rewards Bucks for every Facebook friend a consumer can get to like the Paragould page. 5. Offer a free breakfast voucher for a customer who has tagged the hotel with a positive LinkedIn post about business travel. 6. Notify the ten customers who have "liked" the most Paragould posts over the past year that they are getting a free night's stay.

1. The general manager of the Hilton Hotel in Sydney is evaluating an employment screening test for the front office clerical staff. During this evaluation all new clerical employees are given the test. 70% pass the test; the rest fail. At a later time, after the new clerical employees have been working for a while, their performance is evaluated as being satisfactory or unsatisfactory. Historically, 80% of all clerical employees have been found to be satisfactory, and 75% of the satisfactory clerical employees in the evaluation of the employment screening test have passed the screening test. (a) From the given information, determine the probabilities of the following events: (i) passing the test, (ii) having satisfactory performance and (iii) passing the test given satisfactory performance. [3 marks] (b) Using your answers to part (a), determine the probability of a clerical employee passing the test and having satisfactory performance. [1 mark] (c) Using your answer in parts (a) and (b), determine the probabilities of the a clerical employee: (i) failing the test and having satisfactory performance, (ii) failing the test and having unsatisfactory performance, (iii) passing the test and having unsatisfactory performance, and (iv) having unsatisfactory performance. [4 marks] (d) Using your answers in part (c), determine the probabilities of a clerical employee: (i) failing the test given they are found to have unsatisfactory performance, (ii) failing the test given they are found to have satisfactory performance, (iii) passing the test given they are found to have unsatisfactory performance, (iv) unsatisfactory performance given they failed the test, (v) satisfactory performance given they passed the test, (vi) unsatisfactory performance given they passed the test, and (vii) satisfactory performance given they failed the test. [7 marks] (e) Using your answers in part (d), determine the following percentages: (i) clerical employees who failed the test and prove to be unsatisfactory, and (ii) clerical employees who passed the test and who prove to be satisfactory. [2 marks] (f) Government guidelines require screening tests to achieve at least 20% for part (i) in (e) and at least 60% for part (ii) in (e). Does this test meet those government requirements? Explain. [2 marks]

1. Jace collected the following data on the quarterly room occupancy (in hundreds) for a resort hotel in Iowa.

1. Plot the data and describe any trend and seasonal effects you observe in the data.

2. Compute and interpret the seasonal indices.

3. Jace’s manager, Joseph, wants Jace to forecast the occupancy for four quarters of 2018. Can you help him (Forecast he room occupancy for four quarters of 2018)?

The Evanstonian is an upscale independent hotel that caters to both business and leisure travelers. When a guest calls room service at The Evanstonian, the room-service manager takes down the order. The service manager then submits an order ticket to the kitchen to begin preparing the food. She also gives an order to the sommelier (i.e., the wine waiter) to fetch wine from the cellar and to prepare any other alcoholic beverages. Finally, she assigns the order to a waiter.

  It takes 6 minutes to take down the order and to assign the work to the kitchen, sommelier, and waiter. It takes the kitchen 16 minutes to prepare the typical order. It takes the sommelier 8 minutes to prepare the drinks for the order. While the kitchen and the sommelier are doing their tasks, the waiter readies a cart (i.e., puts a tablecloth on the cart and gathers silverware). This takes 8 minutes per order.

  Once the food, wine, and cart are ready, the waiter delivers it to the guest’s room. It takes the waiter 14 minutes to deliver the meal to the customer. It takes the waiter additional 2 minutes to return to the station and debit the guest’ account. All the times mentioned represent flow time at the various activities, an include the effects of waiting.

Activity Time and Visit

a. Draw a process map for the room-service process: from receipt of order to delivery of food

b. What is the critical path and theoretical flow time of the process?

c. What is the effect on the process flow time if the waiter could prepare the cart in 6 minutes, instead of 8?

d. Computes the waste time due to rework?

e. The hotel wants to reduce its theoretical flow time by 4 minutes. Give an example of using elimination approach to reduce the theoretical flow time. (Show which activity or activities should be reduced and by how many minutes).