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  • Evolution of 4Ps

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    garima gaur
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    Linda Snow, the hotel manager, needs to forecast demand for rooms on Saturday, August 22. Using a seasonal index model, demand is forecast to be 1670 rooms, which is less than the total rooms available of 1877. Therefore, Linda can accept a booking of 60 additional rooms from a tour company. The pickup ratio and weekday index indicate final demand will be lower than the initial Tuesday booking numbers. There is no risk to the hotel in accepting this additional booking request.

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    Linda Snow, the hotel manager, needs to forecast demand for rooms on Saturday, August 22. Using a seasonal index model, demand is forecast to be 1670 rooms, which is less than the total rooms available of 1877. Therefore, Linda can accept a booking of 60 additional rooms from a tour company. The pickup ratio and weekday index indicate final demand will be lower than the initial Tuesday booking numbers. There is no risk to the hotel in accepting this additional booking request.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    14 views6 pages

    Evolution of 4Ps

    Uploaded by

    garima gaur
    Linda Snow, the hotel manager, needs to forecast demand for rooms on Saturday, August 22. Using a seasonal index model, demand is forecast to be 1670 rooms, which is less than the total rooms available of 1877. Therefore, Linda can accept a booking of 60 additional rooms from a tour company. The pickup ratio and weekday index indicate final demand will be lower than the initial Tuesday booking numbers. There is no risk to the hotel in accepting this additional booking request.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 6

    MARRIOTT

    ROOMS
    FORECASTIN
    G

    GROUP - 2
    ABOUT THE
    CASE
    Linda Snow- Hotel Manager
    Total Rooms in Hotel - 1877

    Rooms reserved for August 22- 1839


    Contribution Margin from a room: $90
    Lost contribution margin from denying a room:
    $180

    Busiest Days: Tuesday, Wednesday, Thursday


    Objective:
    To forecast demand for rooms on Saturday- August 22
    Identify if it is possible to accept booking from tour company
    SOLUTION

    Demand Forecast using Generated Seasonal Index


    Tuesday
    Demand Booking Pickup Ratio DOW Index Date

    1,670 1,839 0.908 0.865 22nd August

    • The demand for rooms is expected to be 1670


    which is less than the total number of rooms
    • Linda Snow can accept the booking of the
    sixty rooms from the tour company

    • MAPE: 9.09%
    CURVE FIT

    Fit: Linear

    Slope: -0.001
    Intercept: 1.156
    INTERPRETATI
    ON
    1
    Pickup Ratio: 0.908 means the final demand
    would be smaller than Tuesday bookings for
    Saturday- August 22
    2

    There are sufficient vacant rooms to


    accommodate new bookings

    There is no risk in accepting the booking


    THANK YOU

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