Case Study : Vail Resorts 's Highest Cost Of Revenue

1. Gross revenue as an indicator of performance is useful but has the limitation of being an absolute measure which may not reveal market shifts relative to competition.

When it comes to judging the alternatives with the most important factors of profit maximization and competitive advantage, the recommended option to become focused on family diving vacations is much stronger than the option to specialize in shark diving. (Displayed in detail in Exhibit 2). Partnering with Rascals posts the highest first full year profits of $166,000 compared to the adventure focused and cost efficiency alternative that posts a first year profit of $112,000. Further, the partnering with Rascals has projected revenues that are sustained further out in the future because of the competitive advantage gained when moving into the family oriented diving segment rather than the adventure oriented segment. The difference in estimated revenue between the two in 2011 is approximately $620,000 with the family specialization solution

Profits from the BBD’s recreational products group (snowmobile/watercraft sales) represented 37% of company’s profits; MADE GROUP CENTRAL TO COMPANY SUCCESS. Aerospace group represented 66% of revenues and 85% profits (increase in jet sales, expanding economy, Bombardier created new commuter jet segment).

The hotel chain, Astor Lodge and Suites, Inc., operates 250 properties in 10 western and Rocky Mountain states. The company’s customer base primarily comprises business travelers. In addition, the locations of the properties surround airports, large regional shopping centers, and major highways close to suburban industrial sites as well as office complexes. Projections of 2005 fiscal year forecast a fifth consecutive year of a gross loss for the firm. The estimates include an anticipated $422.6 million in company lodging revenues but a net loss of $15.7 million for 2005. As a result, Joseph James, president and CEO of Astor Lodge and Suites, Inc., initiated a challenging goal for executive management to devise a strategy achieving net profits in two years and sustaining positive growth in the future.

Since its foundation in 1927 Marriott Corporation grew into one of the leading lodging and food services in the US. With three major business lines: lodging, contract services and related business, Marriott has the intention to remain a premier growth company. To achieve this goal the corporation’s strategy is to develop aggressively appropriate opportunities within their business lines. Marriott would like to be the preferred employer, the preferred provider and the most profitable company in each of the operating areas. The financial strategy includes four key elements:

The profitability figures as derived from the data given in the case are as follows:

Both CZR and the Industry operating profit margin is .12. The net profit margin of CZR is 130% as the Industry is 19% showing that CZR is reliable and consistent with their profit margins. So, this indicates that for every dollar generated by CZR their shareholder obtains $1.30 which is a benefit to them. Their return on assets for 2015 is 50% as to where the Industry is 1% showing that CZR can efficiently be generating earning as its using assets. Return of equity for CZR ratio is 6.13 as to where the Industry is .43; CZR attributes 5.7 more to shareholders than the Industry against the investment that shareholders had put into the firm. Both CZR and the Industry’s return on capital employed is 6%, which shows the efficiency of the company may generate profits from their used money. So, this indicates that for every dollar invested in the capital employed that both CZR and Industry made six cents of benefits. CZR’s financial strength, profitability, and competitive position will attract potential investors as it demonstrations Caesars Entertainment Corporations long-term survivability.

Wynn Resorts, led by the romantic and visionary leader Steve Wynn, is a leader in the gaming and casinos industry. Following its mission statement of, “A commitment to providing an elegant environment, high-quality amenities, a superior level of service and distinctive attractions for our customers,” the company is well known for its luxury and excellence. Some major competitors in the Industry are MGM Mirage and Trump Entertainment Resorts. Fortune Magazine said that ”Wynn, which also led casino resort operators in 2009, ranked second in the hotel, casino and resort category for innovation and number 3 for people management, quality of management and quality of its products and services.” Wynn Resorts management strategy is that of focused differentiation. They create products and services that are unique and valued in which customers will pay a premium and they focus on an upper class segment. The company does well in management or in parenting, by using the experience of the corporate office and the support of the corporate office. Wynn Resorts does an excellent job in branding and is a big part of the company’s core competencies.

Gross margins for 1994, 1995, 1996 and 1997 were 53.9%, 49%, 52.63% and 55.5%, respectively. Be Our Guest, Inc. is doing a solid job of keeping the Costs of Revenue in line with the Sales Revenue. It is a positive sign to see this growth, because we can be assured that the company is staying competitive, while not completely giving in to the pricing crunch. Annual Sales Revenue has a strong CAGR, but it is important and concerning to note that the CAGR of total Operating Expenses is higher. It is about 5% higher and this is very important, because Be Our Guest needs to stay in control of its expenses.

Practicing CIA (Covered Interest Arbitrage) by borrowing CAD 96 Million to buy USD on April 1, 2002, and invest the USD for six months. At CAD interest rates of 2.70% for borrowing and 2.55% for depositing, and USD interest rates of 1.85% for borrowing and 1.65% for depositing.

MGM Resorts International was incorporated in Delaware on January 29, 1986 as MGM Grand, Incorporated, a subsidiary of Kirk

Blue Mountain Resorts were first built in 1941, and it is the largest family-operated ski resort in Canada. The major problem in this case is that the CEO of the Blue Mountain Resorts has to decide whether to install facilitates or not for the night skiing in 1979-1980 winter skiing season. Maintaining comfortable capacity at ski resort is very important in this field of market. The capacity depends on the hill size, hill development, and lift facilities. Therefore, to provide the night skiing service, investing in hills and lifts are important factors. So, if the CEO decides to install the night skiing facilities, he needs to decide the price of the single-night lift ticket

In the year 2000, The Ritz-Carlton Hotel Company paired with luxury real estate developer Millennium Partners to build a $225 million hospitality complex in the heart of Washington DC. This 300-room hotel was set to be the first out of a six-hotel deal between these two companies. The structure of the deal was that Millennium Partners would be the owners of the properties and The Ritz-Carlton would manage them.

Our team chose the hotel industry in the United States for our economic analysis. The hotel business has existed since the earliest times, and has influenced the development of the economy since the founding of this country.

In this section we look at who are our competitors in the same industry and how can we gain the large portion of the market share and profits. However, if the level of competition becomes too high it can ultimately lead to a decrease in profits. There has been an increase in the amount of competitors on the tourism industry over the last 10 years, with the introduction of online sales and new airlines. For the tourism industry the level of competition can be quite high as