Answer:
Explanation:
1/3rd of the guests are leisure travelers
2/3rd of the guests are business travelers
Average leisure travelers stay for 3.6 nights
Average business travelers stay for 3.6*1/2 = 1.8
a)
It is given that on average day 135 guests check into The Evanstonian (R)
Leisure travelers = 135*1/3=45 guests per day(night)
Average number of leisure travelers = 45*3.6 = 162 guests
Business travelers = 135*2/3 = 90 guests per night
Average number of business travelers = 90*1.8 = 162 guests
b)
Total inventory = Leisure travelers + Business travelers = 162*2 = 324
Inventory turns = R/total inventory = 135/324 = 0.4167 turns per day
per month: 0.4167 * 30 = 12.5 turns
c)
324 rooms are booked for a night on average
We calculated that half of them are booked by leisure and half by business travelers
Therefore, average revenue is 1/2*250 + 1/2* 210 = 125 + 105 = $230
