Question

Amount +14.6 Revenue Variance ce's walked room terielles ADR be if she accepted all of Lawre. he walked rooms? revenue if Jerielle age erielle aged pue if Jerielle agreed to RePOR with the walked rooms? What would be Jerielles RevPOR with the walked What would be Jerielle's RevPOR without the walked 2. What would be the dollar difference in her hotel's total re take the rooms E What would be the difference in her hotel's total revenue the rooms? If you were Jerielle, would you accept the walked rooms Explain your answer. poms from Lawrence's bee 5. Watson Walbert is on the corporate RM team for the Sunbird Hote is the franchisor for Red Robin and Falcon hotels. Part of Watson's ich and Net ADR Yields for the distribution channels used by the compar charges its franchised hotels a total of 5 percent of gross room reven made. Additional fees (listed as a percentage of ADR) that are assessed fe channel are presented in the following table. Calculate the information the chart Watson is working on and then answer the questions that follow Hotel Corporation. Sumbin o's job is evaluating te many franchisees. Sub revenue for each room essed for each distribus formation required to complete Total Fees: 5% franchisor fee PLUS an additional; Channel ADR hird-party Web Net ADR Net ADR Yield $166.54 des 27% nchisor Web $229.99 7% retary Web $239.99 5% Egent $209.59 11%

Answer 1

Lets start with step 1, we calculate Net ADR.

Assuming ADR given is exclusive of fees, Net ADR would be ADR plus fees.

Net ADR = ADR + FEES

CHANNEL 1 Net ADR = $ 166.54 + 27% = 211.5058

CHANNEL 2 Net ADR = $ 229.99 + 7% = 246.0893

CHANNEL 3 Net ADR = $ 239.99 + 5% = 251.9895

CHANNEL 4 Net ADR = $ 209.59 + 11% = 232.6449

Once we have Net ADR, We can calculate Net ADR Yield by

Net ADR Yield = (ADR/NET ADR)* 100

CHANNEL 1 = (166.54/211.50)*100 = 78.74%

SIMILARLY IT COULD BE CALCULATED FOR OTHER CHANNELS.

THE CALCULATIONS MIGHT BE DIFFERENT IF WE CONSIDER ADR TO BE INCLUSIVE OF FEES, THAT IS FOR CHANNEL 1 166.54 IS INCLUSIVE OF 27% FEES