Question

The Evanstonian is an upscale independent hotel that caters to both business and leisure travelers. On average, one-third of the guests checking in each day are leisure travelers. Leisure travelers generally stay for 3.6 nights-twice as long as the average business customer. a. On an average day, 135 guests check into The Evanstonian. On average, how many guests of each type are in the hotel on any given day? (Enter numbers only and no text) Leisure travelers = travelers Business travelers = travelers b. How many times per month does the hotel turn over its inventory of guests (assume 30 days per month)? Turns= turns per month c. The average business traveler pays a rate of $250 per night, while leisure travelers pay an average rate of $210 per night. What is the average revenue?The Evanstonian receives per night per occupied room? Average revenue = $

Answer 1

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