Question

The management of the Big Pillow hotel wishes to adopt the moving average model to forecast the hotel’s room revenues. The 5-day internal financial data in a certain week are given in the following table:

Days   #of Rooms Available   Occupancy Percentage (Occ. %) Average Daily Rate (ADR) ($)

Monday 200 40.00   110.00

Tuesday 200 63.00 107.00

Wednesday 200   58.00 90.00

Thursday 200 85.00 112.00

Friday 200 90.00 125.00

Based on the internal financial data, calculate the total room revenue for both Saturday and Sunday by applying 3-day moving average forecasting model.

Answer 1

# of rooms available Days (A) Moving averages (3 day) Occupancy% (B) 40% 63% Average daily rate (c) 110 107 90 200 200 200 na na 58% Revenue (A*B*C) $8,800 $13,482 $10,440 $19,040 $22,500 $17,327 $19,622 Monday Tuesday Wednesday Thursday Friday Saturday Sunday na 200 112 85% 90% 200 125 $10,907 $14,321 $17,327 $19,622 Average of Monday, Tuesday and Wednesday Average of Tuesday, Wednesday and Thursday Average of Wednesday, Thursday and Friday Average of Thursday, Friday and Saturday Total room revenue applying 3 day moving averages for Saturday is $17,327 and Sunday is $19,622