You are given a forecasted data set
for a hotel and you must set yourself in the role of the Revenue Manager of
this hotel.
1.
You are given one week of forecasted data (number of customers). Your
first task is to select a location and time of year and based on these, make at
least 10 justified adjustments on the data (these may have an effect on only
one day or several days each). For example, because of a conference in your
city, the forecast must be increased.
State your justifications and reasoning clearly, referencing to external
websites etc. Ask yourself what kind of
information you would need (and are able to find) to base your assumptions on,
if you were the revenue manager of the hotel. In addition establish your four
BAR by investigating the prices charged during the selected event at your
destination.
VERY IMPORTANT: MAKE YOUR ADJUSTMENTS AS INTEGERS, NOT WITH DECIMALS.
USING DECIMALS WILL CAUSE EXTREME EXCEL SOLVER SLOWNESS.
(a hint: it might not always make sense to select a mega-event, such as
Olympics, as making justified assumptions may turn out very difficult. A
smaller event may offer more room for solid assumptions based on facts.)
2.
Solve the single resource capacity allocation for each day of the chosen
week using EMSR-b. Calculate the suggested allocations per fare class.
3.
Create the revenue optimizing allocation of fare classes for different
customers taking into account multiple nights’ stays (network management) using
linear programming. Calculate the suggested allocations per fare class.
4.
Compare and contrast the two proposed room allocations with each other
by reflecting on the estimated revenues per day and week. Write a managerial
report based on this comparison, highlighting clearly what the theoretical
background for each model is, why the results are different and what are the
limitations of each model. Discuss issues related to the trustworthiness of the
results and practical application of the results from a managers’ point of view
including a justified capacity
allocation for the week (and e.g. any comments on length-of-stay
restrictions etc.)
