Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Ana Chavarria, front office manager at The Times Hotel, has completed a yield management
seminar at Keystone University and is preparing an argument to adopt this concept at The
Times Hotel to present to Margaret Chu, general manager. She begins by com- piling a
history of room occupancy and ADRs, which she hopes will reveal areas in which yield management could help. She prepares an electronic spreadsheet that lists rooms sold with corresponding room rates and correlates the data to tourism
activities in the area. Ana sends an analysis of revenue realized and revenue potential to Ms. Chu
for review prior to their discussion.
After reviewing the analysis, Ms. Chu concludes, “This is just another scam; the industry is slow to
adopt this,” and disregards the entire report. She knows that occupancy percentage, ADR, and
RevPAR are all that you need to be efficient today, so why change?
Ana passes Ms. Chu in the lobby, and Ms. Chu indicates her distrust of the yield management
concept but says she will listen to Ana’s presentation to- morrow.
What tips could you give Ana to help her present a sound case for adoption of yield management?
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