Displacement Analysis

2901 Words Jun 8th, 2012 12 Pages
Introduction
The hotel industry is a revenue generated business whose profit normally streams mainly from guest room nights, but other areas in the hotel which generate revenue are meeting spaces, food and beverage, gift shop, spa services, etc. These different departments in a hotel go hand in hand, in that, rooms are a vital part of any hotel, if they are being sold and profit is maximized in that department, it is likely that the other departments would be utilized as well, as opposed to if the occupancy and a hotel was very low. The hospitality industry is unpredictable when it comes to forecasting real-time customer demand and profit maximization. The front desk staff often face difficult decisions when it comes to booking in groups
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Guest rooms are not the only thing requested, they would also like to have one meeting room per night to host their gatherings with coaches and fellow competitors. Along with these requests they notified her that they would all being enjoying breakfast Saturday morning, they will be attending their swim meets during the day so lunch is not needed, at least half of them will be eating dinner for both nights at the hotel while the rest enjoy dinner elsewhere, they will all use to pool for practice swims and at night approx. 65% of them will gather together in the bar to socialize while having wine and cocktails. Also the on-site spa will be generating a lot of revenue from the competitive swimming team The hotel is expecting to sell to 20% spa services on Friday and 35% spa services on Saturday because they would be done with their swim meet by then and they would want to relax.
This has turned into a dilemma because on the same weekend there is the Scotiabank Toronto Waterfront Marathon early Saturday morning. The Larson Hotel is at the very start of the marathon so it is convenient for travellers to stay here. Majority of them will be arriving Friday to settle in, they will be occupying 222 rooms. On Saturday an additional 18 rooms will be occupied for the same group with very early check-in requests. In total number of guest rooms on Saturday will be 240 devoted to the marathon participates. After reviewing the previous
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