Assessment Task: Word 1800 Report on the analysis
There should be an overview of the assessment task and expectations of students to successfully complete the task.
This is an individual report. It should include the following:
Your work will be assessed in terms of the following criteria:
1. Effectiveness of communication – i.e. readability, legibility, neatness, completeness and presentation
2. Demonstrated understanding of the subject matter covered - This will be evidenced by your ability of submitted answers.
Certain aspects of these questions may require some assumptions to be made. Therefore, different answers are very acceptable. For ease of marking please specify these if you think it clarifies your decisions and responses. Unless assumptions are provided your work would be marked with the marking guide provided. The marks for individual criteria are already discussed along with the questions.
You are the RM at Luxury Resorts. Mayan is the property’s DOSM and Dasha is the FOM. All you three serves on the hotel’s RM boards committee headed by the DOSM.
The hotel has 250 rooms that it can serve to customers per night stay. Last year records showed that the hotel usually has 90% occupancy for the Easter holiday season from 1st April till 8th April every year. The rooms are selling at a rack rate of $99.99 per night.
Offer 1: Dasha has been approached by Tennis Australia to block 200 rooms per day (80% occupancy) for the Easter holiday season from 1st April till 8th April. The price quoted to them is $79.99 per night.
Offer 2: Mayan has been approached by the Football Associations to block 220 rooms (88% occupancy) per day for the Easter holiday season from 1st April till 8th April. The price quoted to them is $75.99 per night.
There are two offers that currently need to be considered. The RM committee requires you to calculate differentiate explain which of their costs are fixed and variable and any recommendations to change from the variable to fixed costs or would that be better to stay as variable costs according to the cost behaviour and driver.
Luxury Resorts Australia RM Committee are planning to find out whether Dasha’s offer would be beneficial or Mayan’s offer should be considered or should they open for business as usual to operate with the forecasted 90% occupancy.
Forecasted Expenses for the period 1 st April 2021 – 8 th April 2021
Full time staff Salary @100% occupancy $7,000.00
Casual staff wages @100% occupancy $3,500.00
Electricity charges @100% occupancy $1,200.00
Water charges @100% occupancy $1,400.00
Guests laundry charges @ 100 % occupancy $ 380.50
Room Cleaning charges @ 100 percent occupancy $2,283.00
Phone and internet charges yearly charges @100% occupancy $7,800.00
Weekly bank charges @100% occupancy $70.00
Your report should be presented in this format: Contents Page:
A. Executive summary
(2.5 marks) (250 – 500 words) (Note- this should be posted in task 3b discussion forum)
B. Body of the Report
(total 25 Marks) (body of the report should comprise the following) (750 – 1000 words)
1. Cost Analysis (Here you must differentiate cost as fixed cost / variable cost and state the reason why they are fixed / variable related to their cost behaviours and recommendations to transform from variable to fixed costs or would that be better to stay as variable costs according to the cost behaviour and driver.) (5 Marks)
2. Break even Analysis: (Here calculate your BEP using the BEP formula so you need your Fixed cost and variable cost per unit calculated for each room and find out what the Breakeven rooms per day and propose the committee what would be the BEP in units and dollars for 100% occupancy (5 marks)
3. Calculate and Analyse ADR, REVPAR and REVPAR index (Here you need to calculate the ADR per day and REVPAR per day with the data provided) and comment on the RevPAR index ( the market REVPAR index is stated at 91.6% (5 marks)
4. Calculate and Analyse the Revenue dollar differences both in percentage and dollars: Here Calculate and Analyse the dollar difference & % difference in her total revenue compare which offer would yield more if she agreed to take the rooms offer from Dasha or Mayan or would she be better off not taking those offers and staying with 90 % occupancy (7.5 Marks)
C. Decision / Recommendation
(Explain the reason which offer should the committee accept or be better not accepting any offers and staying off with the 90% occupancy.) (10 marks) (500 words)
D. References:
Overall Report presentation with no grammar, formatting errors , proper APA style referencing(5 Marks)