Question

a hotel that has 200 rooms charges a rate of $200 per night monday through thursday. during this period of peak demand, the hotel operates at 100 percent capacity. on weekends (friday through sunday), the hotel discounts half of its rooms at a rate of $100 per night while the remaining rooms are still priced at $200 per night. calculate the hotel's yield for a saturday night, if it fills 50 percent of the $200 rooms and sells all of the $100 rooms. round to the nearest percent.

Answer 1

The yield for the hotel on a Saturday night is calculated by dividing the total actual revenue by the potential revenue at full capacity and full rate, and then multiplying by 100 to get the percentage. With all $100 rooms and 50% of the $200 rooms filled, the hotel's yield is 50%.

Step-by-step explanation:

To calculate the hotel's yield for a Saturday night, we need to consider the number of rooms sold and the rate at which they are sold.

The hotel has a total of 200 rooms. Half of these rooms are discounted to $100 for the weekend nights, and the other half remain at the standard rate of $200.

According to the question, all $100 rooms are sold, which means 100 rooms at $100 each. Then, 50 percent of the $200 rooms are sold, so that's 50 rooms at $200 each.

We need to calculate the total revenue and then the yield, which is the actual revenue divided by the potential revenue if all rooms were sold at the full price.

Total Actual Revenue = (100 rooms × $100) + (50 rooms × $200)

= $10,000 + $10,000

= $20,000

Potential Revenue at full capacity and full rate = 200 rooms × $200

= $40,000

Yield = (Total Actual Revenue / Potential Revenue) × 100

= ($20,000 / $40,000) × 100

= 50%

Therefore, the yield for the hotel on a Saturday night, with the given occupancy rates and room prices, is 50%.