Hotel Continental

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HOTEL CONTINENTAL Case Study II MGT 201 Submitted by: Group II: Ada Ballesfin Cel Dizon Reyvs Firmalino Hotel Continental I. Point of View Mr. Oscar Mendoza, Owner, Triumph Tours II. Major Problem What is the best strategy for Triumph Tours to effectively manage the hotel accommodation of their clients especially during peak season? III. Case Facts Strengths:…show more content…
We can also compute for per unit cost of food (as item sold and cost of sale) by dividing the total Food Revenue/Food Cost of Sale by Unit Rental Count giving us P1,000 and P450 respectively. We will then try to create a forecasted income statement based on 40% occupancy (assuming only travel tour customers will utilize the hotel). 40% occupancy is 3,942 unit rentals (9,855 x 0.4). Figure 2. Hotel Continental Forecasted Income Statement [pic] To summarize, to produce break even income in coming years, at 40% capacity (3,942 unit rentals), room rate prices have to at least be tripled. However, this does not factor in timing issues of non-travel tour customers who would want to avail of hotel rooms/resources. IV. Alternatives A. Lease Hotel Continental and Re-price room and/or food rates o Accommodation for tour groups is assured during peak travel months. o Huge capital is required and will be tied-up which can be used for other capital projects. o Highly risky since the company has no competitive advantage and experience in hotel management. o Limits the choices for customers on hotel preferences. o Not profitable in the short run

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