Question

Today is June 1 and you are the Sales Manager for a 135-room hotel. The statistics are as follows for the week of June 22.

		Transient Rooms On-the-Books	Same Time Last Year	Last Year Actual Rooms Sold
Fri	22-Jun-18	51	47	119
Sat	23-Jun-18	65	57	130
Sun	24-Jun-18	52	48	124
Mon	25-Jun-18	58	52	129
Tue	26-Jun-18	65	61	135
Wed	27-Jun-18	52	47	126
Thu	28-Jun-18	40	32	108

Yes or No, does the hotel have the potential to out on June 23? Why or why not?

Assuming that within this time frame, the hotel expects cancellations and no-shows to amount to 5% of total rooms sold. How many more rooms should you sell to ensure a sell-out on June 26?  

Answer 1

comparing transients rooms on the books and rooms same time last year on June 23,

Transient rooms on the books = 65

Rooms same time last year = 57

% increase = ((65-57)/57)*100 = 14.035%

Actual rooms sold last year on 23rd Jan = 130

Potential number of rooms that can sold = 130+14.035% of 135 = 148.246

There are 135 rooms in hotel where as there is a potential to sell 148 rooms. Therefore the hotel has the potential to sell out on 23-Jun-18

>>

Let n be the number of rooms sold during this time frame.

(65+n)*0.95 = 135

65+n = 142.105

n = 77.105

They need to sell 78 rooms to ensure a sell out