Assessment Task: 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...

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Assessment Task:


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 1st April 2021 – 8th 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






Required:



The DOSM, head of the RM committee has asked you to prepare the following and submit a report to the RM committee with the following requirements below to decide.



Task 3A: Prepare a short 6 to 8 mins video presentation about your findings and recommendations to the RM committee of Purple Resorts. (20 Marks)



The DOSM would like to see these following in the video Presentation for the committee.


1. The Forecasted total cost and revenue for Dasha, Mayans Proposal and normal estimated occupancy (5 marks)


2. The Break-even units in rooms and dollars for 100% occupancy (5 marks)


3. Comparison of Dasha, Mayans Proposal and normal estimated occupancy and which would be yielding more? (5 marks)



4.
Your proposal Recommendation and reason (5 marks)



4.



The video presentation should be a created using a PowerPoint slide with a maximum of 10 slides.


Task 3B:


Your report should be presented in this format:


Contents Page:


A. Executive summary (2.5 marks) (250 – 500 words)


B. Body of the Report (total 25 Marks) (body of the report should comprise the following)


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.) (750 – 1000 words) (5 Marks)


2. 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)

Answered 3 days AfterFeb 03, 2021

Answer To: Assessment Task: You are the RM at Luxury Resorts. Mayan is the property’s DOSM and Dasha is the...

Jyoti answered on Feb 06 2021
135 Votes
PURPLE RESORTS
LUXURY RESORTS
REPORT ON BUSINESS OFFERS
1
EXECUTIVE SUMMARY
Luxury hotel has 250 rooms available at a rate of $99.99 per night.
Last year, hotel had 90% occupancy during Easter holiday period from 1st April to 8th April.
During the current year, two offers are received from Tennis Australia and Football Associations for blocking rooms during holiday period.
The report considers said two offers along with option of running business with 90% occupancy in normal fashion and provide recommendation for best proposal with detailed reasoning.
With all calculations and analysis, it is being found that luxury hotel should operate in normal fashion at 90% occupancy .
Cost Analysis- Total Revenue
The improved Presenter View has new tools to keep you in control. The new Auto-Extend instantly applies the right settings for you, so you can focus on speaking instead of your display.
Slide zoom – Help focus your audience on your ideas.  Just click to zoom in and out on a specific diagram, chart or graphic.
Slide Navigator – A feature that enables the user to visually browse for and navigate to other slides without leaving Slide Show view. Your audience only sees the slide you’re presenting.
    Cost analysis            
    Particulars    Proposal -1    Proposal-2    Proposal-3
         Tennis Australia    Football Association    Normal operations
    Total revenue               
    Total rooms in hotel    250    250    250
    Occupancy    80%    88%    90%
    Total rooms to be occupied in offer    200    220    225
    Rate per room for a night    79.99    75.99    99.99
    Room rent for a day     $15,998      $ 16,718      $22,498
    No. of days (1st April to 8th April)    8    8    8
    Total Revenue from 1st April-8 April     $ 1,27,984      $ 1,33,742      $ 1,79,982
Cost Analysis- Total Cost
    Cost analysis            
    Particulars    Proposal -1    Proposal-2    Proposal-3
         Tennis Australia    Football Association    Normal operations
    Fixed cost               
    Full time staff Salary     $5600      $6160      $6300
    Phone and internet charges     $6240      $6864      $7020
    Weekly bank charges     $112      $123.2      $126
    Electricity charges     $960      $1056      $1080
    Water charges     $1120      $1232      $1260
    Total fixed cost     $14032      $15435.2      $15786
    Variable cost               
    Guest laundry charges
Per room charges =380.50/250
=1.522     $304.4      $334.84      $342.45
    Room cleaning charges
Per room cost
=2283/250
=9.132
     $1826.4      $2009.04      $2054.7
    Casual staff wages
Per room...
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