Question

Section 5: Distribution Channel Management Jasmine is the RM at the Genie Hotel, a 300-room franchised hotel. She is evaluating alternative options regarding the allocation of 100 unsold guest rooms for the third weekend of next month. Her group room sales department believes (but is not positive) that it can sell 30 group rooms for that date at a rate of $185 per room . The FOM believes that if the rooms are advertised on the franchisor's operated property website, with a 25% discount off the rate, 90 and would be non-cancelable. 100 rooms, believing that they can be resold for $172.99 per night. hotel's$229.99 normal rack rooms might sell through the CRS. These reservations would be payable immediately A third party internet intermediary is willing to pay $160 for all se fee and 3% Jasmine knows that under her franchise agreement, she pays an 8% franchi marketing fee on all revenue generated from room sales. Additional fees for using the hotel's CRS are 1% of booked revenue and $2.00 for each room reserved. Internet service provider IDS) related charges paid by the hotel for rooms sold through Internet providers are $10 per room sold. Based on this information, help Jasmine complete the following chart and answer the following question. Distribution Channel Group CRS Sales 3rd Party Merchant Rooms 100 $160.00 90 80 Rooms sold 185.00 $172.49 (Standard) rate Gross revenue Franchise fee (8%) Franchise marketing Fee (3%) Franchisor's CRS fee (1% + $2.00 per room) IDS fee ($10.00 per room) Net total revenue Net ADR yield If you were Jasmine, to which channel would you allocate the 100 rooms? Why?

Answer 1

0 Dis tributio chaune Group rCRS Sales mercuaut lok Dos Sold 8o O0 Staudard rok 112.41 185 oS Yevene 4,800 00 Franchisee tee (8%) -1,184 - 1241.13 -128D -444 -480 0 335-24 2_ lo.ooPer rDom IDS - 900 .3 Net total vevenae 13,357 12 53.10 Net -ADe yield 166.9 6 14y mutlout Dectsn . Te merlaut diredy Pay the butk amout loo roonus E all Hlhe able oom au Sold

room.t all diret 3Though the let ADRield shighu in option 1, bu Lut hu sals oon ae chagu ale payable en the ее er -the a มิ abie rd Pakymad ces sale not nt evue